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Effortless hiring in

China

China is one of the world’s oldest civilizations, with a history spanning thousands of years. The Great Wall of China, the Forbidden City, and the Terracotta Army are iconic landmarks. As the world’s most populous country, China is a global economic powerhouse and a hub of technological innovation. Chinese cuisine, tea culture, and martial arts have influenced the world. The country’s diverse landscapes include the Yangtze River, the Gobi Desert, and the towering Himalayas.

Languages

Mandarin, Cantonese, Hunanese, and more

Population

1.4 Billion

Capital City

Beijing

Currency

Chinese Yuan (CNY)

Cost of living ranking

85th

VAT (Value Added Tax)

13%

Hiring in

China

Employment Contracts

  • Chinese law mandates that all employees have a written employment contract. This contract must detail essential terms such as:
  • Job responsibilities.
  • Compensation.
  • Working hours.
  • Other pertinent conditions.
  • The Labor Contract Law of the People's Republic of China, effective since 2008, governs these contracts. Employers must provide the written contract within 30 days of the employee's start date; failure to do so may result in penalties, including double wages for each month without a contract.

Probationary Period

  • The permissible length of a probationary period depends on the duration of the employment contract:
  • Contracts of 3 months to 1 year: up to 1 month probation.
  • Contracts of 1 to 3 years: up to 2 months probation.
  • Contracts longer than 3 years or open-ended: up to 6 months probation.
  • During probation, termination by the employer requires admissible grounds, such as the employee not meeting job requirements.

Payroll Management in

China

Payroll Frequency

  • Employees are typically paid on a monthly basis, with the specific pay date agreed upon in the employment contract. Employers must provide itemized pay statements detailing wages and any deductions.

Minimum Wage

  • China does not have a national minimum wage; instead, minimum wage standards are set by local governments and vary by region. Employers must adhere to the local minimum wage applicable to their location.

Overtime

  • Standard working hours are generally 8 hours per day and 44 hours per week. Overtime is compensated at:
  • 150% of the regular hourly rate for overtime on weekdays.
  • 200% for overtime on weekends.
  • 300% for overtime on public holidays.
  • Employers must obtain employee consent for overtime and adhere to legal limits on overtime hours.

Taxation in

China

Employee Contributions

  1. Social Insurance: Employees contribute to several social insurance programs, including pension, medical, unemployment, and housing funds. Contribution rates vary by region.

Employer Contributions

  1. Social Insurance: Employers are required to contribute a percentage of the employee's gross salary to social insurance programs, with rates varying by region.

Income Tax

  • China employs a progressive income tax system with rates ranging from 3% to 45% depending on income levels. Employers are responsible for withholding the appropriate amount from employees' salaries and remitting it to the tax authorities.

Leave in

China

Types of Leave in China

  1. Annual Leave
  • Employees are entitled to paid annual leave based on their cumulative working years:
  • 1 to 10 years: 5 days.
  • 10 to 20 years: 10 days.
  • Over 20 years: 15 days.
  • Unused annual leave must be compensated if not taken within the stipulated time.
  1. Public Holidays
  • China observes 11 national public holidays each year. If an employee works on a public holiday, they are entitled to additional compensation at 300% of their regular wage for those hours.
  1. Sick Leave
  • Employees are entitled to sick leave with pay, the duration and compensation of which depend on their length of service and local regulations.
  1. Maternity Leave
  • Female employees are entitled to a minimum of 98 days of maternity leave, with additional days for complications or multiple births. During this period, they receive maternity allowances as stipulated by local regulations.
  1. Paternity Leave
  • Paternity leave policies vary by region, with some local governments providing paternity leave ranging from 7 to 30 days.

Benefits in

China

Social Insurance Benefits

  • Contributions to social insurance provide employees with various benefits including health care, parental benefits, disability benefits, and retirement pensions.

Housing Fund

  • Employers and employees contribute to the Housing Provident Fund, which assists employees in purchasing housing. Contribution rates are determined by local authorities.

Termination in

China

Notice Period

  • Employers must provide a 30-day written notice or one month's salary in lieu of notice when terminating an employee without fault. Employees generally need to give 30 days' notice when resigning.

Severance Pay

  • Severance pay is calculated based on the employee's years of service:
  • One month's salary for each year worked.
  • For periods less than a year but more than six months, it is considered a full year; for less than six months, half a month's salary is paid.

Protected Employees

  • Certain employees, such as those pregnant or on maternity leave, have additional protections against termination under most circumstances.

ON THIS PAGE

Overview

Hiring

Payroll

Taxes

Leave

Benefits

Termination

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