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Talent Wiki - China

Your quick guide on talent and labor compliance norms in China




Chinese Yuan Renminbi (CNY)



Payroll Frequency


GDP per Capita


Employer Tax

Based on Local Government Laws

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:

Engineer, IT, Management, Sales

Local Universities

The top local universities in China include the following:

Tsinghua University


Local: 1

World: 43

Peking University


Local: 2

World: 180

Zhejiang University


Local: 3

World: 239

Shanghai Jiao Tong University


Local: 4

World: 241

Fudan University


Local: 5

World: 502

Salary Data

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

Job titles Average Monthly Salary (CNY) Average Monthly Salary (USD)
Financial Manager 55,500 8029.98
General Manager 49,800 7205.28
Business Development Manager 46,300 6698.88
Financial Analyst 38,100 5512.47
Business Analyst 36,900 5338.85
Project Manager 32,700 4731.18

Talent Sourcing Tips

Employing in China

Chinese employers and employees are both protected under labor laws. It provides 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 2023

Date Name Type
1 Jan New Years day National Holiday
21 Jan Spring Festival eve National Holiday
22 Jan Chinese New year National Holiday
23 Jan Spring Festival holiday National Holiday
24 Jan Spring Festival holiday National Holiday
25 Jan Spring Festival holiday National Holiday
26 Jan Spring Festival holiday National Holiday
27 Jan Spring Festival holiday National Holiday
8 Mar Internation Women’s day National Holiday
12 Mar Arbor day National Holiday
5 Apr Qingming Festival National Holiday
1 May Labor day National Holiday
1 Jun International Childrens day National Holiday
22 Jun Dragon Boat festival National Holiday
1 Jul CPC Foundation day National Holiday
1 Aug Liberation Army day National Holiday
29 Sep Mid-Autumn festival National Holiday
1 Oct National day National Holiday
2 Oct National day holiday National Holiday
3 Oct National day holiday National Holiday
4 Oct National day holiday National Holiday
5 Oct National day holiday National Holiday
6 Oct National day holiday National Holiday
7 Oct National day holiday National Holiday
25 Dec Christmas day National Holiday

Employee Leaves

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


Payroll Cycle

The payroll cycle followed in China is monthly.

Minimum Wage

The minimum wage varies in different provinces. It ranges from 1,430 RMB – 2,590 RMB per month.

Overtime Pay

The standard working hours in China are 8 hours per day and 44 hours per week. 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:


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

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


Employer-Employee Payroll Tax

China Social Security contributions Include Pension, Medical, Maternity, Unemployment and Accidental which are mainly managed by the Ministry of Human Resources and Social Security (MOHRSS). Also, there is another contribution Housing Fund which is managed by the Ministry of Housing and Urban-Rural Development and the employer has to contribute 5% to 25% based on the city employee is based on.

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% 15%
Medical (including maternity) 2% 10% 2%  9.8% 2% 6.85%
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% 0.16% to 0.12%
Total 10.5% 26.66% to 28.02% 10.5%  26.5% to 28.2% 10.2% 22.33% to 213.77%
Ceiling for monthly salary base CNY 34,188 CNY 21,884 CNY 22,930 for pension; CNY 36,544 for medical; CNY 36,072 for unemployment

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


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


The standard VAT rate in China varies from 0% to 13%.

Offboarding & Termination

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

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.

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.

Streamline payroll and compliance for your international workforce


Minimum Wage

Overtime Pay

Day of Overtime Overtime Pay Rate
Weekdays 150%
Weekends 200%
Holidays 300%

Visa & Immigration