Your quick guide on talent and labor compliance norms in China
Capital
Beijing
Currency
Chinese Yuan Renminbi (CNY)
Languages
Chinese
Payroll Frequency
Monthly
GDP per Capita
$14,800.65
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:
Local: 1
World: 248
Local: 2
World: 287
Local: 3
World: 307
Local: 4
World: 402
Local: 5
World: 447
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 | 7,732 |
| General Manager | 49,800 | 6,938 |
| Business Development Manager | 46,300 | 6,451 |
| Financial Analyst | 38,100 | 5,308 |
| Business Analyst | 36,900 | 5,140 |
| Project Manager | 32,700 | 4,556 |
Talent Sourcing Tips
ChinaJob.com, Monster.com.hk, ChinaHot.com
5,970,000
Access People Executive Search & Recruitment, Acropolis Associates Executive Search, Antal International – Beijing
Chinese employers and employees are both protected under labor laws. It provides equal opportunity based on pay and promotion.
Chinese and English are the languages of employment contracts.
The usual probationary period followed in China is from one to six months.
| Date | Name | Type |
| 1 Jan | New Year’s Day | National holiday |
| 9 Feb | Spring Festival Eve | National holiday |
| 10 Feb | Lunar New Year | National holiday |
| 11 Feb | Spring Festival Golden Week holiday | National holiday |
| 12 Feb | Spring Festival Golden Week holiday | National holiday |
| 13 Feb | Spring Festival Golden Week holiday | National holiday |
| 14 Feb | Spring Festival Golden Week holiday | National holiday |
| 15 Feb | Spring Festival Golden Week holiday | National holiday |
| 8 Mar | International Women’s Day | Half day holiday |
| 4 Apr | Qing Ming Jie | National holiday |
| 1 May | Labour Day | National holiday |
| 4 May | Youth Day | Half day holiday |
| 1 Jun | Children’s Day | Observance |
| 10 Jun | Dragon Boat Festival | National holiday |
| 17 Sep | Mid-Autumn Festival | 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 |
| 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
Payroll Cycle
The payroll cycle followed in China is monthly.
Minimum Wage
The minimum wage varies in different provinces. It ranges from 1,450 RMB – 2,690 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:
Bonus
Most companies pay the 13th-month salary as a bonus to their employees during the month of Lunar New Year or Spring Holidays.
Taxes
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 | |||
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 |
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.
| Day of Overtime | Overtime Pay Rate |
| Weekdays | 150% |
| Weekends | 200% |
| Holidays | 300% |
