China, officially the People’s Republic of China, is the largest of all Asian countries with the largest population in the world. It has 33 administrative units directly under the central government, consisting of 22 provinces, five autonomous regions, four municipalities, and two special administrative regions. It is the world’s largest producer of rice and is among the principal sources of wheat, corn (maize), tobacco, soybeans, peanuts (groundnuts), and cotton.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in China.

Capital :
Beijing
Currency :
Renminbi (¥, CNY)
Languages spoken :
Mandarin Chinese
Population :
1.41 billion (2021 est.)
Minimum wage 2022 :
No national, only regional minimum wages
Cost of Living index :
$$ (80 of 139 nations)
Payroll Frequency :
Monthly
VAT - standard rate :
6%
GDP - real growth rate :
8.1% (2021 est.)

Statutory Holidays

There are seven national holidays celebrated over a number of days in China.

The national holidays mentioned below are valid for the year 2022.

Date
Holiday Name
Extra Information
January 1-3
New Year’s Day (元旦)
January 31-February 6
Spring Festival (春节)
Movable
April 3-5
Ching Ming Festival (清明节)
Movable
April 30-May 4
Labor Day (劳动节)
June 3-5
Dragon Boat Festival (端午节)
Movable
September 10-12
Mid-Autumn Festival (中秋节)
Movable
October 1-7
National Day Holiday (国庆节)

Contract Sharing Time


The approximate time for sharing the contract with an employee in China is 6 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

What You Need To Know


  • Social security contribution rates in China vary per location and local regulations.
  • The employment contract must be in the Chinese language, though a translated English version is common.
  • The length of paternity leave, maternity leave, and marriage leave in China vary per specific locale.
  • As of May 31, 2022, the State Council of the People’s Republic of China has announced that all small, medium, and micro-enterprises in eligible areas that have temporary difficulties in production and operation due to the epidemic will gradually postpone the payment for pension insurance, unemployment insurance, and work-related injury insurance. The period of deferred payment will be implemented in stages until the end of 2022.

Labor Conditions


Working Hours

Employees work no more than eight hours per day and 44 hours per week, and employers must ensure that employees have at least one day off each week.

Overtime

Due to the needs of production and operation, the employer may extend the working hours after consultation with the trade union and the workers, generally not exceeding one hour per day.

If the working hours need to be extended for special reasons, under the condition of ensuring the health of workers, the extended working hours must not exceed three hours per day and 36 hours per month.

Overtime is paid at 150% of employees’ salaries.

Probation Period

If the contract is less than three months or only for completing a specific task within a specific term, no probationary period is allowed.

For contracts of at least three months, the probation period varies from one to six months depending on the length of the employment contracts:

Length of Employment ContractsProbation Period
3 months and more but less than 1 yearUp to 1 month
1 year or more but less than 3 yearsUp to 2 months
3 years or more and indefinite termUp to 6 months
Termination Notice Period

The termination notice period depends on whether or not the employee is on probation as follows:

Probation StatusEmployer Notice PeriodEmployee Notice Period
During probationNot allowed*3 days
Post probation30 days or pay in lieu of notice*30 days

*However, if the employee is proved to be unqualified for employment during the probation period, employers may dismiss them without notice.

**The pay in lieu must be based on the employee’s previous monthly salary.

Leave / Time Off

Annual Leave

Employees who have worked continuously for more than one year are entitled to paid annual leave. During the annual leave, employees enjoy the same salary as during normal work. The amount of annual leave depends on the employee’s length of employment:

Length of EmploymentAnnual Leave
Less than 1 year0 days
1 year but less than 10 years5 days
10 years but less than 20 years10 days
20 years15 days

Sick Leave

Sick leave ranges from three to 24 months depending on the employee’s length of their entire professional career and their years of working experience with the current employer:

Employees’ Entire Professional CareerEmployees’ Working Experience with Current EmployerSick Leave Entitlements
Less than 10 yearsLess than 5 years3 months
5 years or more6 months
10 years or moreLess than 5 years6 months
5 years or more but less than 10 years9 months
10 years or more but less than 15 years12 months
15 years or more but less than 20 years18 months
20 years or more24 months

Parental Leave

There is no national requirement for parental leave, but local regulations might stipulate parental leave. The following table summarizes the locally required parental leave for Shanghai and Beijing:

CitiesParental Leave (Per Year)Compensation
Shanghai5 working days for each parent before the child reaches 3 years old100% of normal wage
Beijing5 working days for each parent before the child reaches 3 years old

  

100% of normal wage
Maternity Leave

Female employees are entitled to 98 days of maternity leave, starting from 15 days before childbirth. Maternity leave is paid either by the employer or the maternity insurance fund.

Local jurisdictions may provide additional maternity leave. The following table summarizes the locally required maternity leave for Shanghai and Beijing:

CitiesMaternity Leave (Per Year)Compensation
Shanghai158 days100% of normal wages
Beijing158 daysAt least 100% of normal wages
Paternity Leave

There is no statutorily required paternity leave, but local governments may offer paid paternity leave. The following table summarizes the locally required paternity leave for Shanghai and Beijing:

CitiesPaternity Leave (Per Year)Compensation
Shanghai10 days100% of normal wages
Beijing15 daysAt least 100% of normal wages

Other Types of Paid Leave

Marriage Leave(婚假)

Employees are entitled to a marriage leave of up to three days. But local jurisdictions vary.

 

Bereavement Leave (丧假)

Employees are entitled to a bereavement leave of up to three days.

 

Single Child Leave to Take Care of Elderly Parents (独生子女护理假/陪护假)

There is no central legislation on this leave. For example, Shanghai does not provide such leave, but Beijing provides employees who are single children of their families 10 days to take care of their elderly parents

 

Unpaid Leave

There is no statutory unpaid leave in China.

Statutory Benefits

Employers and employees must contribute to five insurances and one fund, or “五险一金”, including:

  • Pension insurance (基本养老保险);
  • Medical Insurance (基本医疗保险);
  • Unemployment insurance (失业保险);
  • Work-related injury insurance (工伤保险);
  • Maternity insurance (生育保险);
  • Housing provident fund.

The following table summarizes the monthly contribution rates for Shanghai and Beijing in 2022:

ShanghaiBeijing
BenefitsEmployer RatesEmployee RatesEmployer RatesEmployee Rates
Pension insurance16%8%16%8%
Medical and maternity insurance10%2%9.8%2%
Unemployment insurance0.5%0.5%0.5%0.5%
Work-related injury insurance0.16-1.52%0%0.2-1.9%0%
Housing provident fund5-7%5-7%5-12%5-12%
Total31.66-35.02%15.5-17.5%31.5-40.2%15.5-22.5%

 

Health Insurance

Employers must enroll their employees in mandatory medical insurance (基本医疗保险), funded by both the employer and the employee. The contribution rates vary across local jurisdictions. Many major cities have combined both medical and maternity insurance.

The following table summarizes the mandatory employer contribution rates for medical and maternity insurance for Shanghai and Beijing in 2022:

ShanghaiBeijing
Employer RatesEmployee RatesEmployer RatesEmployee Rates
10%2%9.8%2%

 

Accident Insurance

The employer must enroll their employee in work-related injury insurance (工伤保险), and only the employer contributes to the insurance. The are eight different contribution rates depending on the risk and classification of the profession.

The following table summarizes the mandatory employer contribution rates for work-related injury insurance for Shanghai and Beijing in 2022:

ShanghaiBeijing
0.16-1.52%

  • 0.16%
  • 0.32%
  • 0.56%
  • 0.72%
  • 0.88%
  • 1.04%
  • 1.28%
  • 1.52%
0.2-1.9%

  • 0.2%
  • 0.4%
  • 0.7%
  • 0.9%
  • 1.1%
  • 1.3%
  • 1.6%
  • 1.9%
Unemployment Insurance

Employers must enroll their employees in mandatory unemployment insurance (失业保险), funded by both the employer and the employee. The contribution rates vary per specific locale. 

The following table summarizes the mandatory employer contribution rates for unemployment insurance for Shanghai and Beijing in 2022:

ShanghaiBeijing
Employer RatesEmployee RatesEmployer RatesEmployee Rates
0.5%0.5%0.5%0.5%

Public Pension

The retirement age for private enterprise employees is 60 years old for males and 55 years old for females. Employers must enroll their employees in mandatory pension insurance (基本养老保险), funded by both the employer and the employee. Employer contribution rates vary per specific locale. Both in Shanghai and Beijing, the employer contributes 16% to the pension insurance, while the employee contributes 8%.

Other Statutory Benefits

Housing Provident Fund (住房公积金)

Contribution rates to the housing provident fund vary per local regulations in China. The following table summarizes the contribution rates for Shanghai and Beijing in 2022:

ShanghaiBeijing
Employer RatesEmployee RatesEmployer RatesEmployee Rates
5-7%5-7%5-12%5-12%

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

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