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Remote’s guide to employing in

China
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Make employment in China easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in China, all in one easy-to-use platform.

  • Capital City

    Beijing

  • Currency

    Chinese yuan (¥, CNY)

  • Languages

    Mandarin (Putonghua)

  • Population size

    1,400,050,000

Services available in this country:
Employer of Record ProductContractor Management

Facts & Stats

  • Capital City

    Beijing

  • Currency

    Chinese yuan (¥, CNY)

  • Languages

    Mandarin (Putonghua)

  • Population size

    1,400,050,000

  • Ease of doing business

    Very easy

  • Cost of living index

    42.54 (2021)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    13%

  • GDP - real growth rate

    6.1% (2019)

Since Deng Xiaoping launched the Open Door policy in late 1978, China has seen rocketship growth over the past four decades, transforming a strictly communist economy into a global superpower.

Today, China is a staggering multi-trillion dollar economy dominating entire industries from manufacturing to finance, setting the pace for so much technological innovation.

China’s labor market is vast, highly educated, and home to an enormous an untapped collection of expats and locals open to remote work. The sheer size and potential of China markets makes international expansion here alluring to any growth-focused employer.

Keep in mind that local expertise is almost essential in nearly every instance due to the truly unique nature of doing business here. More and more Chinese professionals are multilingual with fluency in English as well as local dialects. It’s also worth noting that China’s huge expanse makes every pocket of the country different. The culture, food, climate, language, and business practices of each province often varies dramatically, but for those companies determined enough to find success in China – the potential rewards are immense.

Grow your team in China with Remote

Looking to employ workers in China? Companies hiring in China must either own a legal entity in the country or work with a global employment solutions provider, usually with providers like Remote.


Remote can employ your team in Shanghai province through our local legal entity handle payroll, benefits, taxes, and compliance for your Chinese team (note that we are actively working on wider availability across China). You can also pay contractors now in China with Remote.

Risks of misclassification

China, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in China may lead to fines and penalties for the offending company.

Employing in China

Provisions for employee protections and workers’ rights are spelled out in the Labour Law of the People’s Republic of China and Labour Contract Law of the People’s Republic of China. The Labour Law covers workplace discrimination against employees’ protected characteristics such as ethnicity and religion.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in China.

Minimum wage

The minimum wage in China varies across cities/regions. The major cities have an average higher minimum wage. Shanghai, for example, sets its minimum wage at 2,690 RMB per month or 24 RMB per hour.

15 Public holidays

Jan
Monday, January 1, 20241New Year's Day (元旦)
Feb
Saturday, February 10, 20242Chinese Lunar New Year's Day (中国农历元旦)
Sunday, February 11, 20243Second Day of the Chinese Lunar New Year Golden Week (中国农历新年黄金周第二天)
Monday, February 12, 20244Third Day of the Chinese Lunar New Year Golden Week (中国农历新年黄金周第三天)
Tuesday, February 13, 20245Fourth Day of the Chinese Lunar New Year Golden Week (中国农历新年黄金周的第四天)
Mar
Friday, March 8, 20246International Women's Day
Apr
Thursday, April 4, 20247Ching Ming Festival (清明节)
May
Wednesday, May 1, 20248Labor Day (劳动节)
Jun
Monday, June 10, 20249Dragon Boat Festival (端午节)
Sep
Tuesday, September 17, 202410Mid-Autumn Festival (中秋节)
Oct
Tuesday, October 1, 202411National Day (国庆日)
Wednesday, October 2, 202412Second Day of the National Day Golden Week (国庆黄金周第二天)
Thursday, October 3, 202413Third Day of the National Day Golden Week (国庆黄金周的第三天)
Friday, October 4, 202414Fourth Day of the National Day Golden Week (国庆黄金周的第四天)
Saturday, October 5, 202415Fifth Day of the National Day Golden Week (国庆黄金周的第五天)

Want to see and manage all holidays? Sign up for our free HRIS!

Effortless HR in China: Take the Tour

Seamlessly Manage Your Workforce, from First Hire to Final Paycheck

Competitive benefits package in China

At Remote, we’re passionate about helping you craft the best possible employee experience for your team. We are leading the way in developing globally competitive benefits programs. This means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive, and your company has the localized expertise needed to attract and keep the best global talent.

Our benefits packages in China are tailored to fulfill the local needs of employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Taxes in China

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in China.

  • 16%

    Pension

  • 0.5%

    Unemployment Insurance

  • 10%

    Medical Insurance

  • 0.256%

    Injury Insurance

  • 7%

    Housing Fund

Types of leave

Employees are not entitled to any paid leave before they have completed their first year on the job. Upon completion of their first year of service, but before they have completed their tenth year of service, the employees are entitled to five days off annually. Employees with at least 10 years of service get 10 days off annually, increasing to a maximum of 15 days for 20 years of employment or above.

Employment termination

Termination process

Employment contracts in China can only be terminated with clear justification and severance payment made to the concerned employee.

Notice period

The standard notice period of employer and employee is 30 days and the notice has to be given in writing, although payment can be made in lieu of notice. During probation period, the employee's notice is 3 days.

Severance pay

Employees are entitled to a month’s pay for every year worked, with any tenure up to six months but less than a year counted as a year. Employees with less than six months’ tenure and are not in probation period are entitled to half a month’s pay if they’re let go. Severance is not payable under summary dismissal.

Probation periods

Probation periods can last anywhere from a month to six months, depending on the term of employment. Probation periods are not extendable.

Fair Pricing in China

Employer of Record

Hire and pay your global team

Starting at $599/month

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localized benefits

Contractor Management

Compliantly onboard and pay contractors

$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localized contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

$50

per employee/month

Top features

  • Reduce costs by centralizing payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labor authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app