China’s labor market is shifting fast. Employers face stricter data laws, rising wages, remote work preferences, and growing resistance to long hours. In 2025, an aging workforce and evolving employee expectations add to the challenge.*
Global businesses must localize their hiring strategies to compete for top talent, offering fair pay, career growth, and work-life balance, while staying updated with China’s changing labor laws.
This guide provides clear, practical insights into recruiting in China. It helps you decide whether to manage hiring in-house or partner with an Employer of Record (EOR) — to build and scale a China workforce confidently and efficiently.
Hiring in China: Key trends
- As global hiring expands, Southeast Asian hubs and China* are rising stars — thanks to strong infrastructure and growing talent ecosystems.
- China continues producing a highly educated workforce at scale. In 2024, nearly 10.59 million students* earned their degrees, with over one million* completing master’s and doctoral programs in 2023.
- Despite a surge in graduates, China faces talent gaps in fields like tech and AI. The talent supply-demand ratio in AI was reported at 0.39*, with just two candidates for every five AI roles.
- The country is also witnessing changing migration patterns. New regional business hubs — such as Hefei, Zhengzhou, and Hangzhou — are experiencing rapid growth, fueled by industrial development and government incentives.
- Younger workers are generally moving away from traditional manufacturing and construction jobs.
- There is a growing resistance to long hours, and today, youth in China favor service, gig economy roles, or stable government jobs.
Why businesses should consider recruiting in China
Some advantages of hiring employees in China:
- Cost-effective talent: Even with rising wages in cities like Beijing and Shanghai, China remains competitive, especially in manufacturing, support, and operations.
- Pro-business policies: The government actively supports foreign investment through tax incentives, free trade zones*, and streamlined setup processes.
- Growth-friendly reforms: Ongoing economic reforms* make it easier to do business. China has launched eight major initiatives* to improve the business climate, and its top MBA programs are now globally ranked*, signaling a strong talent pipeline.
Key hiring complexities and costs to consider in China
Recruiting in China offers big opportunities — but it comes with a few complexities and costs, you’ll need to plan for.
Actual cost of hiring in China
Hiring costs in China vary by region, industry, and role. Salaries tend to be higher in cities like Beijing, Shanghai, and Shenzhen, but overall, expect to spend 1.25 to 1.4x an employee’s base salary after factoring in all requirements.
Here’s a quick breakdown:
- Base salary: Minimum wages across China continue to rise, with several provinces making adjustments in 2025.
- As of March, 2025, Shanghai had the highest monthly minimum wage at RMB 2,690, while Beijing led in hourly wages at RMB 26.4 per hour.
- Most provinces have surpassed RMB 2,000 per month, with Guangxi at the lower end, offering RMB 1,690 per month.
- In 2024, 16 provinces* — including Jiangsu, Zhejiang, and Hubei — raised their minimum wages.
- Employer contributions: You’ll need to cover pension,medical insurance,unemployment insurance, injury insurance, and the housing fund. These contributions typically amount to around 37%* of the employee’s salary, though rates vary by location.
- Bonuses: A 13th-month salary* is standard, especially around Lunar New Year. Performance bonuses are also the norm in sectors like tech and finance.
- Overtime pay: Overtime is legally required—1.5× for regular overtime, up to 3× for holidays. Expect this to impact costs during peak seasons.
Global companies must also factor in the cost for entity setup, legal and tax consultants, and the administrative costs of setting up and running payroll, managing onboarding, offboarding, and compliance.
Cultural and compliance complexities
Beyond costs, language, culture, and compliance requirements are some challenges global employers face when recruiting new hires in China.
- Labor laws are strict and ever-changing.
Staying compliant requires close attention — or local expertise – from overtime rules to termination procedures. - Business culture matters.
Communication tends to be indirect*, and hierarchy is respected. Understanding workplace norms is key to building strong local teams. - Language can be a barrier.
While English is common in international offices, Mandarin is still the language of daily business. For large-scale China recruiting, language fluency* helps avoid miscommunication. - It’s a competitive talent market.
Attracting top talent, especially in tech and finance*, means offering strong compensation, career growth, and localized benefits. - Global uncertainty and U.S. tariffs: U.S.-China trade tensions* continue, with new tariffs and policy shifts. While China is working to maintain stability, it’s worth watching how global politics may affect business sentiment.
When hiring employees in China, you must decide how you will navigate these cost, culture, and compliance challenges. Global employers have two choices — managing their hiring with a China entity or an Employer of Record (EOR).
What is an EOR and how does it simplify hiring in China?
An Employer of Record (EOR) is a third-party organization that legally employs your talent on your behalf. You manage the day-to-day work; the EOR handles everything else — from contracts and payroll to taxes, benefits, and compliance.
In China, where labor laws, social security, and tax regulations can be complex, EOR services simplify hiring, ensure compliance, and accelerate market entry.
Essential steps for recruiting in China
Let’s break down the process for recruiting in China and see how an EOR can support at every step.
Step 1: Establish a legal presence in China
For hiring employees in China, foreign businesses must establish a legal entity — most commonly a Wholly Foreign-Owned Enterprise (WFOE) or a Joint Venture (JV). This process involves:
- Name pre-registration and business license application
- Approval from the Ministry of Commerce (MOFCOM) or its local counterparts
- Registration with the State Administration for Market Regulation (SAMR)*
- Tax registration and company seal filing
- Opening a Chinese corporate bank account*
Setting up a WFOE offers full operational control, but the process is complex, costly, and time-consuming, often taking two to nine months*, depending on your industry and location.
China typically does not enforce a strict minimum capital requirement*, but authorities will assess whether your registered capital is sufficient for operational needs, especially in regulated industries like education or finance.
With an EOR
You can bypass entity setup entirely. An EOR like Multiplier becomes the legal employer on your behalf — allowing you to hire talent in China quickly and compliantly, without the upfront cost or delay of establishing a company.
Step 2: Comply with China’s labor laws and employment regulations
Recruiting in China requires adherence to a range of national and local labor laws. Key areas include:
- Employment contracts: Employment contracts* in China can be fixed-term, open-ended, or have terms that expire upon completion of an assignment. The contracts must be in writing and detail key terms, such as job responsibilities, compensation, working hours, benefits, and may include a probationary period.
- Probation periods: Allowed but limited by contract duration (e.g., maximum six months for contracts over three years)*.
- Working hours: The standard is 8 hours per day, 40 hours per week*. You must pay overtime at statutory rates.
- Minimum wage: It is set locally and varies by city and province (e.g., Shanghai’s minimum is higher than in inland regions).
- Mandatory rest days and public holidays: 13 national holidays*, plus local observances.
With an EOR
An EOR like Multiplier ensures employment contracts are locally compliant and manages working hours, benefits, and termination processes, reducing your legal and administrative risk.
Watch how An EOR can help you create these contracts for one or many employees within minutes.
Step 3: Register for and manage statutory social insurance contributions
China mandates participation in a comprehensive social security system* covering:
- Pension insurance
- Medical insurance
- Unemployment insurance
- Work-related injury insurance
- Maternity insurance
- Housing fund contributions
Both employers and employees contribute, and rates vary by city. Non-compliance can result in significant fines or legal consequences.
With an EOR
Your provider handles all social security registration, payments, and filings with local bureaus — ensuring contributions are made correctly and on time, per regional standards.
Step 4: Choose the right hiring model — employee or contractor
Decide whether your new hires will be full-time employees or independent contractors. The definition must reflect how the individual actually works and is determined by the level of control your company has over their tasks, schedule, and deliverables.
Not sure if you’re classifying roles correctly? Take our quick employee vs contractor classification quiz to assess your risk.
With an EOR
An EOR like Multiplier ensures proper worker classification, handles compliant onboarding, and mitigates risks associated with misclassification — so your business stays protected.
Step 5: Set up compliant payroll and deliver statutory benefits
Running payroll in China requires:
- Salary payments in RMB (Renminbi): Even for foreign hires, taxes and insurance contributions must be calculated and paid in RMB*.
- Issuing monthly payslips
- Withholding individual income tax (IIT) and social insurance contributions
- Providing statutory benefits: including paid annual leave, sick leave, maternity leave, and severance pay where applicable.
With an EOR
Multiplier processes tax withholdings and social insurance payments. It helps you tailor compliant and competitive benefits packages, easing your China recruiting efforts.
Managing payroll in China means staying on top of RMB payments, evolving tax brackets, and mandatory benefit contributions — every month. An EOR like Multiplier takes this off your plate. We handle salary disbursement in local currency, tax withholdings, social insurance contributions, and statutory benefits. You stay compliant without setting up a local payroll function from scratch.
Step 6: Onboard and manage your workforce in compliance with local rules
You’ll need to:
- Handle employment documentation in Mandarin*
- Register employees with local labor bureaus
- Maintain HR records
- Comply with local inspections or audits
Managing onboarding professionally and compliantly across employees can be challenging if you don’t have in-country HR personnel or legal advisors.
With an EOR
Multiplier simplifies the process — allowing you to tap into the local talent market swiftly, compliantly, and without the operational complexity of recruiting in China through a local company.
We’ve walked through what it takes to hire in China — step by step. Now, the question is: Should you take it on yourself or bring in an EOR to simplify the process? Here’s a side-by-side view to help you decide.
In-house HR vs. EOR for recruiting in China
If you already have a local entity in China, established vendor relationships, and the HR and legal infrastructure to manage payroll, compliance, and regulatory changes, in-house hiring can be a viable option.
But if you’re entering the market for the first time — or if speed, cost-efficiency, and reducing exposure to policy shifts (like US – China trade tariffs or labor law changes) matter — an EOR may be the smarter choice.
Staying compliant is non-negotiable on whichever path you choose. Here’s a quick checklist to recap what every employer must get right when hiring in China.
The key considerations checklist when recruiting in China
- Align job descriptions with China’s worker classification rules.
- Comply with China’s labor laws* to avoid fines or legal issues.
- Set up mandatory benefits (e.g., medical insurance, unemployment insurance)
- Follow local compensation norms, including 13th-month salary and bonuses.
- Monitor U.S – China trade tensions that may impact your plans for hiring employees in China.
- Be aware of cultural norms around hierarchy, relationships*, and etiquette.
With a robust EOR partner like Multiplier, you can check every compliance checkbox.
With Multiplier, you get:
- Locally compliant Chinese employment contracts, generated in minutes.
- Automated local payroll and tax withholdings
- Full benefits administration
- Local onboarding and HR support
- Complete compliance with Chinese labor laws
- Cultural and language support for smoother team integration
By working with an Employer of Record, you can focus more on your core business while leaving the complexities of recruiting in China to the experts.
Why HR teams love Multiplier for global recruiting in China and beyond
Recruiting in China doesn’t have to be complex. With Multiplier’s EOR services, you get everything you need to hire and manage talent — without setting up a local entity. From compliant contracts to payroll, benefits, and taxes, we take care of every detail of China recruiting so you can scale with confidence.
From RMB payroll and social insurance contributions to compliant contracts and onboarding in Mandarin, we handle it all. You get local precision with global visibility — all at one flat, transparent cost.
Book a demo today to see how Multiplier makes recruiting in China simple, fast, and affordable.
FAQs
Q. Is there a job shortage in China?
China’s urban unemployment dipped to 5.2% in March 2025, showing slight improvement from the previous month. To tackle these employment challenges, the Chinese government is rolling out new policies — including a plan to create over 12 million urban jobs in 2025 and keep unemployment around 5.5%*. These moves are designed to spark job growth and support industries that can hire more of China’s growing graduate pool.
Q. What are the key labor laws I need to know before recruiting in China?
Understanding China’s labor laws is essential for staying compliant. Key areas include employee contracts, mandatory social insurance contributions, working hours, overtime pay, and termination procedures. You should also be aware of the employee’s rights to vacation, maternity leave, and more.
Q. How do I determine the salary and compensation packages for employees in China?
Compensation in China varies depending on location, industry, and the employee’s skill set. In major cities like Beijing and Shanghai, salaries tend to be higher, while smaller cities or rural areas may have lower wages. Employers also need to account for mandatory social insurance contributions and income tax.
Q. How do I obtain work permits and visas for foreign employees in China?
Foreign employees need a Z-visa* to work legally in China. This requires approval from both the Chinese government and the employer. The process includes proving the foreign worker’s qualifications and that there are no suitable local candidates. Work permits are typically valid for one year and renewable*.
Q. Where do I look for remote talent in China?
When looking for the best places in China to hire remote talent, you typically want to hire talent from the following regions:
- Shanghai
- Beijing
- Guangzhou
- Shenzhen
These regions have a higher economic activity compared to the rest of China, and have larger business and tech hubs with more available English-speaking talent. China also has a national exam, called the gao kao that has approximately 10 million takers annually. The gao kao determines the examinees’ placement in different universities. Getting graduates from the following top universities in the country is also a plus:
- Tsinghua University
- Peking University
- Fudan University
- University of Science and Technology of China
- Zhejiang University
Another way to hire talent is to post listings on popular job sites and portals or hire through a trusted recruitment agency. In China, the most popular jobs portals and recruitment agencies are:
- ChinaJob.com
- Monster.com.hk
- Career Engine
- Access People
- Antal
Q. What is the average salary of a Chinese remote employee?
While the average monthly minimum wage in China ranges from CNY 2,480 (USD 388) to CNY 1,120 (USD 175), depending on the employee’s location, the average salary will depend on the nature of the job.
*Sources
- China Briefing | Navigating China’s Evolving Labor Market in 2025
- Forbes: Top 10 Largest Economies in the World in 2025
- Statista: Number of graduates from public colleges and universities in China between 2014 and 2024
- Statista: Number of employed people in China from 2014 to 2024
- Global Times: China sets 2025 GDP growth target at around 5%, projecting confidence in economy
- China Briefing: Navigating China’s Evolving Labor Market in 2025
- EY: How will businesses benefit from the rapid development of China’s Free Trade Zones
- People.cn: Beijing releases new policies to reform the business environment and implements eight actions to build “Beijing Services”
- Financial Times: Business school rankings
- LID Publishing: Chinese Communication Style
- LinkedIn Pulse: The Growing Importance of Chinese Language Skills in Global Business
- China Briefing: China Industries to Watch in 2025
- BBC: Talks or no talks: Who blinks first in US-China trade war?
- China Briefing: A Guide to Minimum Wages in China (As of April 7, 2025)
- TeamedUp China: A Guide To The 13th Month Salary Bonus In China
- China Briefing: What is the minimum wage in China?
- China Briefing: Types of Business in China
- State Administration for Market Regulation
- L&E Global: Employment contracts in China
- CMS Law-Now: What is the HR Related Change with Additional Two Days’ Public Holiday in China
- China Briefing: Setting Up a WFOE in China: a Step-by-Step Guide
- China Briefing: China’s Social Security System: An Explainer
- Baker McKenzie: Worker Misclassification Risk Map
- Lex Documents: How do you deal with documents needed for a Chinese work visa
- China Briefing: Labor Laws in China
- China Legal Experts: China Business Etiquette: 10 Rules for Success
- Dezan Shira & Associates: Obtaining a Z Visa, Work Permit and Residence Permit in China
- China Briefing: China Business Visas
- Deloitte: Fuelling the Asian growth engine Talent challenges, strategies and trends
- China Daily: China’s job market resilient amidst headwinds
