Payroll Cycle
Minumum Wage
Overtime Pay
Day of Overtime Overtime Pay Rate
Weekdays 150%
Weekends 200%
Holidays 300%
Visa Immigration

Talent Wiki - China

Your quick guide on talent and labor compliance norms in China
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Capital
Beijing
Currency
Chinese Yuan Renminbi (CNY)
Languages
Chinese (official)
Payroll Frequency
Monthly
GDP per Capita
$9,020
Employer Tax
Based on local government rules

Supplementary Guide for Employment and Expansion in China

Talent Overview

The most populous country, China, is also the world's largest economy by GDP (based on PPP). China is the world's largest manufacturing and exporting country and is one of the fastest-growing countries in the world. Currently, the country ranks the second most wealthy country among all other world economies.

Major economic hubs:

Beijing, Shanghai, Suzhou

Skills in demand:

English tutor, IT, Hotel management, Sales

Local Universities

The top local universities in China include the following:

Tsinghua University

RANKING

China : 1

World : 133

Peking University

RANKING

China : 2

World : 143

Shanghai Jiao Tong University

RANKING

China : 3

World : 194

Fudan University

RANKING

China : 4

World : 251

Zhejiang University

RANKING

China : 5

World : 290

Salary Data

The top jobs available and their respective salaries are listed below:

Job titles Average Salary (CNY) Average Salary (USD)
Network Engineer 26,000 3,862.68
Human Resource Officer 17,000 2,525.60
Chief financial officer 61,400 9,119.20
Customer service manager 38,400 5,703.21
Business Development Manager 46,300 6,876.53
Graphic Designer 18,900 2,807.84

Talent Sourcing Tips

Employing in China

Chinese employers and employees are both protected under labor laws. It provides an equal opportunity based on pay and promotion.

Employee Contract

Chinese and English are the languages of employment contracts.

Probation Period

The usual probationary period followed in China is from one to six months.

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day National holiday
2 Jan New Year's Holiday National holiday
3 Jan New Year's Holiday National holiday
31 Jan Spring Festival Eve National holiday
1 Feb Lunar New Year National holiday
2 Feb Spring Festival Golden Week holiday National holiday
3 Feb Spring Festival Golden Week holiday National holiday
4 Feb Spring Festival Golden Week holiday National holiday
5 Feb Spring Festival Golden Week holiday National holiday
6 Feb Spring Festival Golden Week holiday National holiday
3 Apr Qing Ming Jie holiday National holiday
4 Apr Qing Ming Jie holiday National holiday
5 Apr Qing Ming Jie National holiday
30 Apr Labor Day Holiday National holiday
1 May Labor Day National holiday
2 May Labor Day Holiday National holiday
3 May Labor Day Holiday National holiday
4 May Labor Day Holiday National holiday
3 Jun Dragon Boat Festival National holiday
4 Jun Dragon Boat Festival holiday National holiday
5 Jun Dragon Boat Festival holiday National holiday
10 Sep Mid-Autumn Festival National holiday
11 Sep Mid-Autumn Festival holiday National holiday
12 Sep Mid-Autumn Festival holiday National holiday
1 Oct National Day National holiday
2 Oct National Day Golden Week holiday National holiday
3 Oct National Day Golden Week holiday National holiday
4 Oct National Day Golden Week holiday National holiday
5 Oct National Day Golden Week holiday National holiday
6 Oct National Day Golden Week holiday National holiday
7 Oct National Day Golden Week holiday National holiday

Employee Leaves

Type of leave Time Period Mandatory
Annual leave/Earned Leave As per employment contract Yes
Sick Leave 120 days Yes
Maternity Leave 14 weeks Yes

Payroll

Payroll Cycle

Payroll cycle followed in China is monthly.

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Minimum Wage

The minimum wage varies in different provinces. It ranges from 1,350 RMB - 2,590 RMB per month.

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Overtime pay

Overtime work is only possible after consultation with any applicable trade union unless the situation is an emergency. Overtime is limited to 1 hour per day, or 36 hours per month. Below are the rates for overtime pay:

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Health Examination Clause

Bonus

13th Month Pay

Most companies pay the 13th month salary as a bonus to their employees, during the month of Lunar New Year or Spring Holidays.

Employee Benefits

Below are some benefits for Chinese employees:  

  • ~Floating bonus or Performance bonus
  • ~13th Month pay
  • ~Pension
  • ~Maternity leave
  • ~Medical benefits
  • ~Employment insurance
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Taxes

Employer-Employee Payroll Tax

City Shanghai Beijing Guangzhou
Social insurance items

Employee's portion

Employer's portion

Employee's portion

Employer's portion

Employee's portion

Employer's portion

Pension

8%

16%

8%

16%

8%

14%

Medical (including maternity)

2%

10.5%

2%

9.8%

2%

6.35%

Unemployment

0.5%

0.5%

0.5%

0.5%

0.2%

0.32% to 0.8%

Work-related injury

0%

0.16% to 1.52%

0%

0.2% to 1.9%

0%

0.1% to 0.7%

Total

10.5%

27.16% to 28.52%

10.5%

26.5% to 28.2%

10.2%

20.77% to 21.85%

Ceiling for monthly salary base CNY 31,014 CNY 28,221 CNY 22,941 for pension; CNY 33,786 for other insurances

Employee Income Tax

For residents, the income tax rates are as follows:

Annual taxable income (CNY*) (1)

Tax rate (%)

Quick deduction (CNY)

0 to 36,000

3

0

Over 36,000 to 144,000

10

2,520

Over 144,000 to 300,000

20

16,920

Over 300,000 to 420,000

25

31,920

Over 420,000 to 660,000

30

52,920

Over 660,000 to 960,000

35

85,920

Over 960,000

45

181,920

* renminbi

For non-residents, the following tax rates are applicable:

Monthly taxable income (CNY)

Tax rate (%)

Quick deduction (CNY)

0 to 3,000

3

0

Over 3,000 to 12,000

10

210

Over 12,000 to 25,000

20

1,410

Over 25,000 to 35,000

25

2,660

Over 35,000 to 55,000

30

4,410

Over 55,000 to 80,000

35

7,160

Over 80,000

45

15,160

VAT

The standard VAT rate in China is 13% with reduced rates in certain sectors.

Offboarding & Termination

Termination Process

It is difficult to terminate an employment contract in China unless by mutual agreement or if an employment contract expires.

Notice Period

 Notice period varies depending on the length of employment. During the probationary period, it is between 3 to 30 days, and for permanent employees, it ranges from one to three months.

Severance Pay

The severance pay is mandatory if applicable, and the amount varies depending on the length of the employment term.

It is calculated as one month's salary for each full year. For employees with high salaries within the area, the severance pay is capped at three times the local average wage.

Visa and Immigration

For any non-PRC passport holder, a work permit is required. Exceptions include Taiwan, Hong Kong and Macao residents. There occurs a grading evaluation for expatriate employees. 

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