Build your workforce in China through the model that fits your goals, not the model a single provider wants to sell. Gracemark helps you compare recruitment, EOR, AOR, contractor, payroll and market-entry options through one accountable workforce partner.
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Before you hire in China
China carries its own employment rules, statutory costs and termination exposure. Get the wrong setup and it means back-pay, penalties and misclassification claims. Here is the complete snapshot, free, so you can plan before you ever talk to us.
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 figures above are statutory baselines drawn from the 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.
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.
What to look for
Each of these shifts your cost, timeline and legal exposure. We walk you through all of them, and handle them for you, so nothing turns into a surprise later.
Gracemark supports employment, payroll, benefits and compliance in China, and 100+ countries, through one accountable partner, delivered directly or through vetted in-country partners depending on the market. Model-agnostic guidance, one point of accountability.
A real workforce specialist replies within one business day. Initial model and cost path within 48 hours. No obligation.
FAQs
To hire in China, most U.S. companies either open a local entity or use an Employer of Record (EOR). 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. Gracemark handles China employment, payroll, benefits and compliance through one accountable partner.
Employer cost in China is Employers pay into the 'five social insurances plus housing fund' system, with combined employer contributions typically totaling roughly 30%-40% of gross salary depending on city, covering pension, medical, unemployment, work injury, maternity insurance and the housing provident fund.. That is on top of gross salary, plus statutory items such as vacation and social contributions. Gracemark provides an exact quote for your role and salary band.
The current minimum wage in China is Minimum wages are set at the provincial/municipal level rather than nationally, varying widely (e.g., Shanghai's monthly minimum wage was among the highest nationally at approximately RMB 2,690/month in recent years); figures must be checked per specific city/province.. Statutory floors change through the year, so Gracemark confirms the exact figure for your hire.
Notice period in China is Termination requires statutory cause or mutual agreement; unilateral termination without cause generally requires notice (30 days) or payment in lieu, plus statutory severance of one month's salary per year of service (subject to a cap in higher-salary cases).. Termination complexity is rated moderate. Getting termination and severance wrong is one of the most expensive mistakes in China, plan it before the first hire.
Statutory annual leave in China is Statutory paid annual leave is 5-15 days depending on cumulative years of work experience (5 days for 1-10 years, 10 days for 10-20 years, 15 days for 20+ years).. Parental leave is 98+ days (province varies). Sick leave is Scaled by tenure. Public holidays: ~11 + Golden Weeks.
Time to hire in China is typically 2–4 weeks (EOR) through an EOR, versus 3–6+ months to open an entity. That is why most first hires in China go through an EOR.
Misclassification risk in China is rated moderate. Full-time, exclusive, day-to-day contractor arrangements are the most exposed, penalties include back-pay, statutory benefits and fines. Gracemark advises on when a contractor, EOR employee or entity hire is defensible.
Last reviewed: September 10, 2026 · Gracemark Global
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