Can I run payroll in China without a local entity?

Yes. Through an Employer of Record (EOR), Gracemark employs your talent under China labor law and runs local payroll, no entity required.

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Payroll in China

Payroll in China runs in CNY (Chinese yuan). Monthly payroll cycle, with mandatory withholding of individual income tax and social insurance contributions each cycle. No national statutory 13th-month bonus is mandated, though a discretionary Chinese New Year bonus is a widespread market practice. Statutory employer contributions apply. Gracemark operates it end-to-end, humans, not tickets.

Get a China payroll quote Paying an existing team there? Tell us the headcount, email or phone is enough.

Currency

CNY, Chinese yuan

Payroll cycle

Monthly payroll cycle, with mandatory withholding of individual income tax and social insurance contributions each cycle.

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).

Minimum wage

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.

13th-month

No national statutory 13th-month bonus is mandated, though a discretionary Chinese New Year bonus is a widespread market practice.

Employer cost

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.

Probation

Probation periods scale with contract length: up to 1 month (contract under 3 years. actually under 1 year), 2 months (1-3 years), or 6 months (3+ years or open-ended contracts).

Notice period

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).

Two ways to run payroll in China

Own-entity payroll

For long-term presence in China. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Eastern Asia time.

EOR-run payroll

No entity in China? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 2–4 weeks (eor), no local incorporation.

Compliance essentials in China

Mandatory social insurance plus housing fund vary sharply by city
Statutory annual leave is low (5–15 days by tenure)
Severance of one month per year on most terminations
Customary 13th-month around Spring Festival
Hukou and local registration affect benefits

Get a payroll quote for China

Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.

Get your China hiring plan

Send the role, a selected worker or an existing-team requirement in China. Get a written recommendation covering the model, cost categories, responsibilities and next steps. One hire is welcome; no meeting required.

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Deeper guide

Hiring guide: China →

Employ without entity

EOR services →

All countries

Global payroll overview →