Global Hirings

August 18, 2023

3 mins

Hiring in China

China, the world's most populous country, holds the distinction of being the largest economy by GDP (based on PPP). Renowned as the leading manufacturing and exporting nation globally, China stands among the fastest-growing economies. At present, it secures the position as the second wealthiest country among all other global economies.

Employing in China

Labor laws in China safeguard the rights of both employers and employees, ensuring equal opportunities in terms of pay and promotion.

Employee Contract

Employment contracts in China are drafted in both Chinese and English languages.

Probation Period

In China, the standard probationary period typically ranges from one to six months.

Employee Leaves

  1. Annual leave/Earned Leave — As per the employment contract
  2. Sick Leave — 120 days
  3. Maternity Leave — 14 weeks


Payroll Cycle

In China, the common payroll cycle is monthly.

Minimum Wage

The minimum wage in China varies across provinces, ranging from 1,430 RMB to 2,590 RMB per month.

Overtime Pay

In China, the standard working hours are set at 8 hours per day and 44 hours per week. Overtime work requires consultation with the relevant trade union, except in emergency situations. Overtime is limited to a maximum of 1 hour per day or 36 hours per month.


13th Month Pay

In China, it is common for companies to provide a bonus known as the 13th-month salary to employees, typically during the Lunar New Year or Spring Holidays.

  1. Employee Benefits
  2. Floating bonus or Performance bonus
  3. 13th Month pay
  4. Pension
  5. Maternity leave
  6. Medical benefits
  7. Employment insurance


Employer-Employee Payroll Tax

China's Social Security contributions encompass various components, including Pension, Medical, Maternity, Unemployment, and Accidental coverage. These contributions are primarily administered by the Ministry of Human Resources and Social Security (MOHRSS).


In China, the standard VAT rate ranges from 0% to 13%, depending on the specific goods or services.

Termination Process

In China, terminating an employment contract can be challenging, typically requiring mutual agreement or expiration of the contract term.

Notice Period

The notice period in China varies based on the duration of employment. During the probationary period, it typically ranges from 3 to 30 days, while for permanent employees, it extends from one to three months.

Severance Pay

Severance pay in China is obligatory if applicable and is determined based on the length of employment. It is calculated as one month's salary for each completed year of service. However, for employees earning higher salaries within the region, severance pay is capped at three times the local average wage.

Visa and Immigration

Non-PRC passport holders are required to obtain a work permit in China, with exceptions for residents of Taiwan, Hong Kong, and Macao. Additionally, there is a grading evaluation process in place for expatriate employees.


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