Hire compliantly in China. Compare EOR providers, navigate a social security system where every city sets its own rules and understand one of the world’s most complex payroll environments.
Capital
Beijing
Language
Chinese
Average Salary
CNY 10,000
Payroll Cycle
Monthly
Employer Cost
28-44%
Paid Leave
5-15 days
Public Holidays
11 days
Tax Rates
3-45%
Detailed guides on the employment topics that matter most when hiring in China. Independently researched, updated for 2026.
This guide breaks down China’s minimum wage system for 2026, covering current statutory monthly and hourly rates by province and major city, employer social insurance and housing fund obligations, compliance requirements under Chinese labor law, penalties for underpayment, and how regional minimum wages compare to actual living costs across China’s Tier-1, Tier-2, and inland cities.
Read ArticleChina requires three separate documents to work legally: a Z Visa, a Foreigner's Work Permit, and a Residence Permit. In February 2026, Beijing and Shanghai resumed strict enforcement of salary thresholds for Category A (6x local average wage) and Category B (4x). This guide covers the full process, the points-based classification system, updated salary minimums by city, required documents, processing times, costs, and how an EOR can sponsor the entire process.
Read ArticleHealth insurance in China operates under the mandatory "5+1" social insurance framework with employer contributions of 9.8-10% of gross salary and employee contributions of 2% plus medical savings. The main scheme, Urban Employee Basic Medical Insurance (UEBMI), is compulsory for all formally employed workers including foreign nationals. This 2026 guide covers UEBMI coverage and reimbursement, contribution rates by city, foreign worker rules, hospital tiers, and commercial supplementary insurance like Shanghai's Huhuibao.
Read ArticleThe average salary in China in 2026 is RMB 124,110 per year per NBS data for urban non-private units, with foreign-invested enterprises averaging RMB 157,964. This guide covers wages by region (Eastern RMB 143,712 vs Central RMB 98,090), city (Beijing, Shanghai, Shenzhen, Hangzhou), industry, and experience level, plus the 7-bracket IIT tax (3% to 45%), Five Insurances and Housing Fund contributions, and total employer cost in China.
Read Article
We independently rank EOR providers based on their actual performance in China. The Best EOR in China guide evaluates providers across pricing transparency, local entity ownership, onboarding speed, in-country support and contract compliance.
China’s payroll rules are set at the city level, not nationally. Contribution rates, salary caps and registration procedures differ between Beijing, Shanghai, Shenzhen and every other municipality. An EOR without genuine local operations in your target city will get the numbers wrong.
When you hire in China, every figure in this table is a national baseline. The actual number depends on the city. Minimum wages, social security caps, maternity leave extensions and even sick leave formulas differ between Beijing, Shanghai, Shenzhen and every other municipality. Always verify against the specific city where your employee works.
| Key Employment Facts | |
| Minimum Wage | CNY 2,320-2,690/month (varies by city) |
| Probation Period | 1-6 months (by contract length) |
| Standard Working Hours | 40 hours/week (8 hours/day, 5 days) |
| Paid Annual Leave | 5-15 days (by years of total work experience) |
| Notice Period | 30 days (or payment in lieu) |
| 13th Salary | Not statutory but widely expected |
| Sick Leave | 3-24 months (by tenure, paid at 60-100%) |
| Maternity Leave | 98 days national + 30-90 days local extension |
Good to Know: China’s annual leave entitlement is based on total cumulative work experience across all employers, not tenure with the current company. An employee with 10+ years of total work history is entitled to 10 days regardless of when they joined your company. Employees with 20+ years get 15 days. Probation periods are tied to contract length: 1 month for contracts up to 1 year, 2 months for 1-3 year contracts, and 6 months for contracts of 3+ years or open-ended. During probation, salary cannot be less than 80% of the agreed post-probation wage or 80% of the minimum wage for the same role in that city, whichever is higher. The 13th salary is not legally required but is a deeply embedded expectation, particularly ahead of Chinese New Year. Most employers pay it, and failing to do so creates significant retention risk. Sick leave pay is calculated using complex city-specific formulas that factor in tenure, local average wage and a percentage scale, making it one of the hardest payroll items to get right without local expertise.
China's "Five Insurances and One Fund" system creates employer costs of 28-44% on top of gross salary. Exact rates depend on the city, industry risk classification and chosen housing fund percentage.
| Employer Contributions | |
| Contribution | Employer Rate |
| Pension Insurance (养老保险) | 16% |
| Medical Insurance (医疗保险) | 5-10% |
| Unemployment Insurance (失业保险) | 0.5-1% |
| Work Injury Insurance (工伤保险) | 0.2-1.9% |
| Maternity Insurance (生育保险) | Merged into medical in most cities |
| Housing Fund (住房公积金) | 5-12% |
| Total Employer Cost | ~28 to 44% of gross |
| Employee Taxes | |
| Tax / Contribution | Employee Rate |
| Individual Income Tax (IIT) | 3-45% (7 progressive brackets) |
| Pension Insurance (employee share) | 8% |
| Medical Insurance (employee share) | 2% |
| Unemployment Insurance (employee share) | 0.3-0.5% |
| Housing Fund (employee share) | 5-12% |
Total employer cost in China typically runs 1.28x to 1.44x of gross salary depending on the city and housing fund rate. For an employee earning CNY 15,000/month in Shanghai, budget approximately CNY 20,000 to CNY 21,500 in total monthly employer cost. In Tier 2 cities, the ratio is closer to 1.28x due to lower salary caps and contribution bases.
China has 11 days of national public holidays spread across 7 holiday periods. The government mandates weekend swaps to create extended breaks, meaning some Saturdays and Sundays become working days.
|
Date |
Holiday |
|
January 1-3 |
New Year’s Day (元旦) |
|
February 15-23 |
Chinese New Year / Spring Festival (春节) – 9 days |
|
April 4-6 |
Qingming Festival (清明节) |
|
May 1-5 |
Labour Day (劳动节) |
|
June 19-21 |
Dragon Boat Festival (端午节) |
|
September 25-27 |
Mid-Autumn Festival (中秋节) |
|
October 1-7 |
National Day / Golden Week (国庆节) |
The State Council publishes the exact holiday schedule and mandatory makeup workdays each November for the following year. Golden Week (October 1-7) and Spring Festival typically involve weekend swaps where employees work the preceding or following Saturday/Sunday. Overtime on statutory holidays must be paid at 300% of normal wages with no option for compensatory time off.
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