Stratedge LOGO with out bg

Contact Us

China Payroll Employment Guide

China offers access to skilled talent but requires strict compliance with city-specific labor laws, written [translate:Mandarin] contracts within 1 month, “Five Insurances + One Fund” contributions (employer 31-42%), and progressive IIT withholding. Local variations by municipality demand expert local knowledge.
Currency: Chinese Yuan (CNY)
Language: Mandarin

Minimum Wage

Varies by city
(e.g., Shanghai ≈CNY 2,690/month)

Probation Period

1-6 months maximum

Employment Cost

31-42% employer burden

Paid Leave Days

5-15 days (by service years)

Working Hours

40 hours/week

Employer Social Security

Pension 16%, Medical 9.8%, others 37%

Income Tax

Progressive (3-45%) employee withholding

Overtime Premium

150% weekdays; 200% holidays

Hiring Guide

Employment contracts in China must be written in Mandarin within one month of hire, including details such as role, workplace, start date, contract type, working hours, salary, and notice rules. Probation periods range from 1 to 6 months, with fixed-term agreements following statutory regulations to ensure employee protections, all in compliance with the PRC Labour Contract Law and collective agreements.
Payroll and taxes require employers to contribute to the Five Insurances and Housing Fund, with rates varying by region, and to withhold and remit Individual Income Tax monthly. Benefits include 5-15 days of paid annual leave depending on service length, up to 3 months of paid sick leave, and maternity leave of 98 days (extended municipally). Employees are entitled to public holidays with pay, and statutory social insurance and leave entitlements cannot be waived. Termination requires at least 30 days’ notice outside probation, with severance typically one month’s salary per year of service, capped at three times the local average. Employers must follow proper legal procedures, including consultation for redundancies and paying unused leave.
Get the full hiring guide now!
Download PDF

For detailed hiring information, customized employment guidance, or support with your China EOR setup, please reach out to our team. We provide compliant employment contracts, payroll processing & tax remittance, social security registration & reporting, benefits administration, and customized onboarding & offboarding services.