Massive talent market with high, city-variable contributions — an EOR is usually the practical route given entity complexity.
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.
Figures reflect current China statutory baselines, reviewed for 2026 and benchmarked against leading global employment providers. Statutory rules change through the year, so we confirm the exact, current numbers for your specific hire.
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 handles employment, payroll, benefits and compliance in China, and 180+ other countries, through one accountable partner. Vendor-agnostic guidance, backed by our own delivery engine.
"They gave us the exact China numbers in a day and had our first hire compliant within the week, no portals, no runaround."
— A Gracemark client, global expansion lead
FAQs
To hire in China, most U.S. companies either open a local entity or use an Employer of Record (EOR). EOR (entity is complex) Gracemark handles China employment, payroll, benefits and compliance through one accountable partner.
Employer cost in China is ~30–41% (social + housing fund). That is on top of gross salary, plus statutory items such as 13th-month / mandatory bonus (13th common (Spring Festival)), vacation and social contributions. Gracemark provides an exact quote for your role and salary band.
The current minimum wage in China is City-set. Statutory floors change through the year, so Gracemark confirms the exact figure for your hire.
Notice period in China is 30 days. 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 5–15 days by tenure. 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: August 2026 · Gracemark Global
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