Effortlessly handle payroll, social insurance, compliance, and benefits for your team in Mainland China with our comprehensive Employer of Record (EOR) service.
Because foreign companies cannot directly employ staff in China without a registered entity, Glints legally employs your team through a licensed local framework so you can hire and operate with confidence.
Effortlessly handle payroll, social insurance, compliance, and benefits for your team in Mainland China with our comprehensive Employer of Record (EOR) service.
Because foreign companies cannot directly employ staff in China without a registered entity, Glints legally employs your team through a licensed local framework so you can hire and operate with confidence.
Hiring in Mainland China means complying with the Labor Contract Law, signing a written Chinese-language employment contract, registering employees for the mandatory "five social insurances and one housing fund", and withholding progressive individual income tax--all of which normally require a locally registered entity. As your Employer of Record, Glints legally employs your team through a licensed local framework, handling employment compliance, payroll, social insurance, and benefits administration so you can focus on building and managing your team smoothly in China.
In China a written employment contract is mandatory and must be in Chinese. It can be fixed-term, open-ended, or project-based, and must be signed within one month of the start date--failure to do so exposes the employer to double-wage penalties. After two consecutive fixed-term contracts, an employee is generally entitled to an open-ended contract.
Probation length is capped by contract term: up to 1 month for contracts of 3 months to 1 year, up to 2 months for 1 to 3 years, and up to 6 months for contracts of 3 years or more (including open-ended). Only one probation period is allowed per employee, and probation wages may not fall below 80% of the agreed salary or the local minimum wage.
Salaries in China are paid monthly in Chinese Yuan (Renminbi). Employers withhold individual income tax (IIT) at progressive rates from 3% to 45%, after a standard monthly deduction of RMB 5,000 plus social insurance, housing fund, and special additional deductions. IIT is filed monthly, with an annual reconciliation between March and June of the following year.
Employers and employees must contribute to the "five social insurances and one housing fund" (pension, medical, unemployment, work-injury, and maternity insurance, plus the housing provident fund). Rates are set city by city; employers should budget roughly an extra 30%-40% on top of gross salary, with pension (employer ~16%) and medical the largest components.
The standard workweek is 40 hours, typically five 8-hour days. Employees are entitled to 13 paid public holidays each year (raised from 11 effective 1 January 2025), and work performed on a statutory holiday must be paid at 300% of the normal wage.
Statutory paid annual leave is tiered by total years of work: 5 days for 1 to under 10 years of service, 10 days for 10 to under 20 years, and 15 days for 20 years or more.
China recognizes several special leaves, including maternity leave (a national minimum of 98 days, extended to around 128-190 days in most provinces), paternity and marriage leave, and bereavement leave.
Employees are granted a statutory medical treatment period of 3 to 24 months depending on their length of service, during which sick pay ranges from 60% to 100% of salary and may not fall below 80% of the local minimum wage.
At-will termination does not exist in China; an employer must have a statutory ground to dismiss. For no-fault dismissals (such as incapacity or a material change of circumstances), the employer must give 30 days' written notice or pay one month's salary in lieu of notice.
Are you ready to enhance your team management in Mainland China? Explore how our comprehensive EOR and PEO services can simplify your workforce operations--including work permit, Z-visa, and residence permit support for foreign hires--ensuring both efficiency and adherence to local regulations.
Learn more about the benefits of partnering with Glints for your EOR and PEO needs in China!
