Seamless talent acquisition in China with EOR

An Employer of Record (EOR) solution lets you employ and manage workers efficiently in China by taking care of:

  • HR Administration
  • Payroll
  • Compliance
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A quick glimpse of hiring in China

CNY ¥

Salary payment currency

English & Mandarin

Contract language

40

Working hours per week

1,450 CNY – 2,690 CNY

Min. hourly salary

36%-42%

Employer cost

11

Bank holidays per year

1st Jan - 31st Dec

Tax cycle

3%-45%

Employee tax
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Everything you need to know before
making your first hire in China

Contracts & Agreements

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Compensation & Benefits

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Taxes & Costs

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Leaves

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Termination & Severance

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Hire and manage your workforce anywhere in APAC

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Contracts & Agreements

In China, all employers are required to give a written employment contract to employees. This document must be in Mandarin as well as English and must be provided to the employee within 30 days of hiring to avoid penalties stated by the law.

Fixed-term

For employment with a fixed term, the end date of the service is highlighted in the contract along with other details such as the probation period, severance, and termination notice. The employer and employee may mutually agree to extend the contract beyond the specified end date if needed.

Indefinite-term

Indefinite term contracts do not specify an end date. To terminate the contract, an employer must specify a valid reason. The reasons for the termination of the employment contract must be legitimate and backed by documentation.

Project-based

Project based employment depends on the completion of a specific work project. Once a project is finished, the employment will come to and end without further action needing to be taken. The contract states all usual employment clauses as well as terms of extension and termination.
With An EOR solution, your employees sign a legal contract with the Employer Of Record while they share a normal working relationship with you.

Compensation & Benefits

Minimum Pay

This varies across different regions within the country. In Shanghai, the minimum monthly wage is 2,590 CNY while in Beijing, it is 2,320 CNY per month.

Payout Cycle

Employees in China generally receive their salary on a monthly basis, usually on the last working day of the month.

Working Hours

Employees in China are required to work for 8 hours/week, for up to 40 hours/week with a break of 30-45 minutes everyday. By law, the employees cannot put in overtime of more than 36 hours a month, and are entitled to overtime payment at the rate of 150%-300% of the regular salary, depending on days spent working.

Guaranteed Benefits

  • Employees are entitled to statutory benefits by law, which include 5 kinds of insurance: health insurance, pension, worker’s compensation, maternity benefits, and unemployment insurance.
  • While the employers are not bound by law to give an annual bonus to the employees, it’s a common custom to pay the 13th month salary as a bonus in the lunar new year.

  • Additional benefits such as housing funds are voluntarily provided by some organizations based on the employee’s income brackets.
Ask us for a Salary Benchmark for your EOR worker.
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Streamline payroll, taxes, and every other HR administration task with one service: Employer Of Record (EOR)

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Taxes & Costs

Tax for Employees

Based on their income brackets, employees in China are required to pay taxes on their annual income as follows:
Taxable income band (CNY) National income tax rate
Less than 36,000 CNY
3%
Between 36,000.01 - 144,000 CNY
10%
Between 144,000.01 - 300,000 CNY
20%
Between 300,000.01 - 420,000 CNY
25%
Between 420,000.01 - 660,000 CNY
30%
Between 660,000.01 - 960,000 CNY
35%
Over 960,000 CNY
45%

Employer Cost

Employers in China pay anywhere between 36% to 42% depending on the location of employment. This includes:
  • Pension - 16%
  • Medical Insurance - 9%-12% depending on the region
  • Housing Fund - 7-12% depending on the region
Other contributions include unemployment fund, insurance against work-related injury and maternity fund.
Ask us for a Gross to Net simulation or a Total Employment Cost calculation for your EOR worker.
Get a quote

Leaves

Employees are entitled to different kinds of leaves in China, which include:

Annual Leave

This varies from 5-15 days annually based on the tenure of the employee in the organization:
  • Under 1 year of employment - no entitled leave
  • 1-10 years of employment - 5 days
  • 10-20 years of employment - 10 days
  • 20+ years of employment - 15 days

Parental Leave

Maternity leaves are issued to pregnant female employees for 98 days, wherein 15 days of time-off is given before childbirth, and the remaining, after the child is born. There is also the option for an employee to take extended maternity leave, the amount of which differs according to the region of work.

Male employees with more than 1 year of service are eligible for 15 days of paternity leave. The leave must be taken within 30 days of the birth of the child.

In both the cases, the salary or thrice the minimum wage (covered under social security), whichever sum is greater, is paid by the Social Security Bureau.

Sick Leave

Employees may obtain sick leaves ranging from 3 months to 24 months depending on their sickness, location of work, and tenure of service at the company.. These leaves may be paid for by the employer to an extent.
For a full list of leaves and public holidays that your new hire in China is entitled to, talk to one of our experts, talk to one of our experts .

Termination & Severance

Termination

Termination of employment in China is complex, and care should be taken to abide by regional legislation and best practice principles. The probation period should be documented carefully and any employer-led termination should be enacted before this milestone. Employers are bound by law to give a written notice of termination of the contract stating a valid reason. However, an employee resigning on their own is not required to state a reason for this decision. A notice period of 30 days is typically required to be served, although it can also be paid in lieu.

Severance Pay

Employees in China receive severance pay when their contract of employment is terminated. No severance is paid to employees while they serve probation. For other employees, a month's salary is paid for every year of service after the probation period, up to a maximum of 3x the minimum wage but for no more than 12 months.

Ready to expand your business across multiple countries in the APAC region?​

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Why choose an Employer Of Record (EOR)
in China?

An Employer Of Record (EOR) solution is relevant for multiple use cases:

  • Enter new markets quickly & expand internationally 
with ease.
  • Hire skilled talent in a foreign location.
  • Avoid contractor misclassification & convert contractors to employees.
  • Mobilize existing talent for secondment or remote opportunity.
  • Focus on core business activities while you outsource HR administration.

Why trust BGC as your Employer Of Record (EOR)?

Industry Expertise

Since 2005, BGC has an extensive experience and proven track record of earning the trust of numerous clients.

Technology Leverage

Streamline operations with advanced technology which result in quicker time to onboard and pay.

Cost-effective pricing

Transparent and affordable monthly pricing that allows you to scale your workforce without any hassles.

Talk to us and make hiring in APAC a breeze!

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