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 2023 : 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.) |
There are seven national holidays celebrated over a number of days in China.
The national holidays mentioned below are valid for the year 2023.
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.
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.
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.
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 Contracts | Probation Period |
| 3 months and more but less than 1 year | Up to 1 month |
| 1 year or more but less than 3 years | Up to 2 months |
| 3 years or more and indefinite term | Up to 6 months |
The termination notice period depends on whether or not the employee is on probation as follows:
| Probation Status | Employer Notice Period | Employee Notice Period |
| During probation | Not allowed* | 3 days |
| Post probation | 30 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.
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 Employment | Annual Leave |
| Less than 1 year | 0 days |
| 1 year but less than 10 years | 5 days |
| 10 years but less than 20 years | 10 days |
| 20 years | 15 days |
Sick leave ranges from three to 24 months depending on the employee’s length of their entire professional career and their years of work experience with the current employer:
| Employees’ Entire Professional Career | Employee Work Experience with Current Employer | Sick Leave Entitlements |
| Less than 10 years | Less than 5 years | 3 months |
| 5 years or more | 6 months | |
| 10 years or more | Less than 5 years | 6 months |
| 5 years or more but less than 10 years | 9 months | |
| 10 years or more but less than 15 years | 12 months | |
| 15 years or more but less than 20 years | 18 months | |
| 20 years or more | 24 months |
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:
| Cities | Parental Leave (Per Year) | Compensation |
| Shanghai | 5 working days for each parent before the child reaches 3 years old | 100% of normal wage |
| Beijing | 5 working days for each parent before the child reaches 3 years old
| 100% of normal wage |
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:
| Cities | Maternity Leave (Per Year) | Compensation |
| Shanghai | 158 days | 100% of normal wages |
| Beijing | 158 days | At least 100% of normal wages |
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:
| Cities | Paternity Leave (Per Year) | Compensation |
| Shanghai | 10 days | 100% of normal wages |
| Beijing | 15 days | At least 100% of normal wages |
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
There is no statutory unpaid leave in China.
Employers and employees must contribute to five insurances and one fund, or “五险一金”, including:
The following table summarizes the monthly contribution rates for Shanghai and Beijing:
| Shanghai | Beijing | |||
| Benefits | Employer Rates | Employee Rates | Employer Rates | Employee Rates |
| Pension insurance | 16% | 8% | 16% | 8% |
| Medical and maternity insurance | 10% | 2% | 9.8% | 2% |
| Unemployment insurance | 0.5% | 0.5% | 0.5% | 0.5% |
| Work-related injury insurance | 0.16-1.52% | 0% | 0.2-1.9% | 0% |
| Housing provident fund | 5-7% | 5-7% | 5-12% | 5-12% |
| Total | 31.66-35.02% | 15.5-17.5% | 31.5-40.2% | 15.5-22.5% |
Employers must enroll their employees in mandatory medical insurance (基本医疗保险), funded by both the employer and the employee. 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:
| Shanghai | Beijing | ||
| Employer Rates | Employee Rates | Employer Rates | Employee Rates |
| 10% | 2% | 9.8% | 2% |
The employer must enroll their employee in work-related injury insurance (工伤保险), and only the employer contributes to the insurance. There 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:
| Shanghai | Beijing |
0.16-1.52%
| 0.2-1.9%
|
Employers must enroll their employees in mandatory unemployment insurance (失业保险), funded by both the employer and the employee. Contribution rates vary per specific locale.
The following table summarizes the mandatory employer contribution rates for unemployment insurance for Shanghai and Beijing:
| Shanghai | Beijing | ||
| Employer Rates | Employee Rates | Employer Rates | Employee Rates |
| 0.5% | 0.5% | 0.5% | 0.5% |
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%.
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:
| Shanghai | Beijing | ||
| Employer Rates | Employee Rates | Employer Rates | Employee Rates |
| 5-7% | 5-7% | 5-12% | 5-12% |
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.
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