Before you hire in China
The China hiring picture, at a glance.
China has its own rules on pay, contributions and ending employment. Get the setup wrong and it turns into back-pay, penalties and claims. Here is what shapes a hire in China; the exact figures for your role come in writing from our team.
Budget beyond salary
Account for applicable employer costs, benefits, service fees and setup before approving the hire.
Choose the working relationship
Match employment, contracting or managed delivery to the work and who directs it.
Plan leave and exit
Agree who handles absence, final pay and employment obligations before the first hire starts.
Working week
Standard workweek is 40 hours (8 hours/day, 5 days) under the Labour Law; overtime is capped (generally no more than 36 hours/month) and paid at 150% (weekday), 200% (rest day without compensatory leave) or 300% (statutory holiday).
Payroll cycle
Monthly payroll cycle, with mandatory withholding of individual income tax and social insurance contributions each cycle.
Time to hire
2β4 weeks (EOR)
Sent with your 24-hour written scope
These change often and depend on your role, salary and location, so we confirm them for you rather than publish a number that may be out of date: employer contributions and caps, the current minimum wage for your role, notice and severance, sick and parental leave cost, and the public-holiday calendar.
Get my China figures in writing βStatutory baseline vs market practice
China is a vast market with major talent hubs in Shanghai, Beijing, Shenzhen and Guangzhou, strong across manufacturing, technology, e-commerce and finance, operating in a single national time zone (CST, UTC+8).
Gracemark recommendation: Employer of Record is commonly used for initial or limited-headcount hiring in China given the complexity, cost and time required to establish a Wholly Foreign-Owned Enterprise (WFOE); a local entity is recommended for larger, longer-term operations.
The guidance above is drawn from the official sources listed below. Typical market practice in China often sits above the statutory floor, and the right model depends on the role, salary band and engagement type.
What creates exposure in China
- Provincial/municipal variation in minimum wage and social insurance requirements demands city-specific compliance
- Strict rules on fixed-term contract renewal triggering mandatory open-ended contracts after two consecutive fixed terms
- Housing provident fund contribution obligations are unique to China and easily overlooked
- Data localization and cross-border data transfer rules affect HR systems and payroll data handling
Reviewed and verified. Figures reflect current China statutory baselines, checked against the public sources listed below with their access dates.
Sources and effective dates
Last reviewed: September 10, 2026Reviewer: Gracemark Workforce OperationsNext review: December 10, 2026Ask about these requirements Educational workforce-planning information, not legal or tax advice. Requirements and service availability depend on the worker, role, location, compensation and engagement model; Gracemark reviews the current position before engagement.