Talent Wiki - China
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
$14,340.35
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
Ranking
Local: 1
World: 43
Peking University
Ranking
Local: 2
World: 180
Zhejiang University
Ranking
Local: 3
World: 239
Shanghai Jiao Tong University
Ranking
Local: 4
World: 241
Fudan University
Ranking
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
Top Local Job Boards
ChinaJob.com, Monster.com.hk, ChinaHot.com
Number of LinkedIn users
5,921,000
Top Recruitment Agencies
Access People Executive Search & Recruitment, Acropolis Associates Executive Search, Antal International – Beijing
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
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:
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
- Floating bonus or Performance bonus
- 13th Month pay
- Pension
- Maternity leave
- Medical benefits
- Employment insurance
Taxes
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 |
*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 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.
