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Global Expansion Guide

China

Manage and pay your employees easily with BIPO in China and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

Chinese Yuan (CNY)

employment guide_language

Language

Modern Standard Chinese (Mandarin)

employment guide_capital

Capital

Beijing

Employer of Record China

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Probation Period

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in China

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Employer of Record China

Embark on your business expansion in China with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Chinese market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

This guide was last updated on 5 February 2026. The content in this guide is current as of this date and based on common business practices.

Employment Contract

Types of Contract

  • Employment contracts in China are categorised into three types:

    • Fixed-term contracts
    • Open-ended contracts
    • Task-based contracts (for the completion of a specific project or assignment)

  • An employer must conclude an open-ended contract where:

    • The employee has worked continuously for ten years; or
    • The employee has completed two consecutive fixed-term contracts and none of the statutory grounds allowing unilateral termination by the employer apply, provided that the employee requests an open-ended contract.

Requirements for the Formation of an Employment Contract

  • A written employment contract must be executed within one month from the employee’s actual commencement date.

  • If a written contract is not concluded:

    • For a period exceeding one month but less than one year from the commencement date, the employer must pay the employee double the monthly wage for each month without a written contract (capped at 11 months).
    • If no written contract is concluded within one year, the parties are deemed to have entered into an open-ended employment contract by operation of law.

  • An employment contract must include the following mandatory clauses:

    • The employer’s name, registered address (domicile), and the name of its legal representative or principal person-in-charge.
    • The employee’s name, residential address, and resident identity card number or other valid identification number.
    • The duration of the employment contract.
    • The job description and place of work.
    • Working hours, rest days, and leave entitlements.
    • Remuneration.
    • Social insurance arrangements.
    • Labour protection, working conditions, and occupational hazard protection.
    • Other matters required under applicable laws and regulations.
  • Employers and employees may additionally agree on other terms, such as probation, training, confidentiality obligations, supplementary insurance, and employee benefits.

Statutory Contributions

Basis for Contribution Calculation: Contributions are calculated based on the employee’s average monthly wage in the preceding year, subject to the applicable minimum and maximum contribution base limits.

Category Limit of Contribution Base Employer Contribution Employee Contribution Remarks
Pension Insurance

Upper limit: No more than 300% of the average wage of urban employees in the relevant province in the previous year.

Lower limit: No less than 60% of the average wage of urban employees in the relevant province in the previous year.

 16% 8% –
Medical Insurance (including Maternity Insurance) Approximately 9% 2% Contribution rates are subject to normative documents issued by the relevant provincial or municipal authorities and may vary by location.
Unemployment Insurance 2% 1% In certain regions, contribution rates are temporarily reduced. For example, Zhejiang, Sichuan, and Hainan currently apply a total contribution rate of 1%.
Work-related Injury Insurance

Industry-based rates determined by provincial and municipal regulations.

For example, in Shanghai, benchmark contribution rates range from approximately 0.2% – 1.9%.

 – Employers may determine the specific contribution rate within the statutory range. Employer and employee contribution rates are generally required to be the same.
Housing Provident Fund 5% – 12% 5% – 12%

Employers may determine the specific contribution rate within the statutory range.

Employer and employee contribution rates are generally required to be the same.

Minimum Wage

Region Monthly Minimum Wage Standard (2016.1.1) Hourly Minimum Wage Standard (2026.1.1)
Level 1 Level 2 Level 3 Level 4 Level 1 Level 2 Level 3 Level 4
Beijing 2540 – – – 27.7 – – –
Tianjin 2510 – – – 26.6 – – –
Hebei 2380 2230 2080 – 24 22 20 –
Shanxi 2150 2050 1950 – 23.2 22.1 20.9 –
Inner Mongolia 2380 2310 2250 – 23.5 22.8 22.2 –
Liaoning 2230 2080 1930 – 22 20 19 –
Jilin 2230 2020 1870 – 22 20.5 19 –
Heilongjiang 2270 2010 1910 – 21 18.8 18.2 –
Shanghai 2740 – – – 25 – – –
Jiangsu 2660 2430 2180 – 25 23 21 –
Zhejiang 2660 2430 2180 – 25 23 21 –
Anhui 2320 2170 2100 2000 23 22 21 20
Fujian 2265 2195 2045 1895 23.5 23 21.5 20
Jiangxi 2240 2090 1950 – 22.4 20.9 19.5 –
Shandong 2400 2210 2020 – 24 22 20 –
Henan 2350 2150 2000 – 23 21.1 19.6 –
Hubei 2400 2130 1970 – 24 21.5 20 –
Hunan 2200 2000 1800 – 22 20 18 –
Guangdong 2500 (Shenzhen: 2520) 2080 1850 1750 23.7 19.8 18.3 17.4
Guangxi 2200 2040 1870 – 22.4 20.7 19 –
Hainan 2250 2070 – – 20 18.4 – –
Chongqing 2330 2200 – – 23 22 – –
Sichuan 2330 2200 – – 23 22 – –
Guizhou 2130 1980 1890 – 22.4 20.8 19.8 –
Yunnan 2170 2020 1870 – 21 20 19 –
Tibet 2360 – – – 23 – – –
Shaanxi 2376 2250 2140 – 23 21.7 20.7 –
Gansu 2200 2130 2080 – 22 21.5 21 –
Qinghai 2080 – – – 20 – – –
Ningxia 2235 2080 – – 22 20 – –
Xinjiang 2070 1890 1750 – 20.7 18.9 17.5 –

Public Holidays

The public holidays listed below are national public holidays observed across China. Please refer to official government announcements for the latest updates.

  • New Year’s Day
  • Chinese New Year / Spring Festival
  • Qingming Festival
  • Labour Day
  • Dragon Boat Festival
  • Mid-Autumn Festival
  • National Day

Notes:

  • If a statutory public holiday falls on a Saturday or Sunday (non-working day), a compensatory day off must be arranged on a working day.
  • The General Office of the State Council issues the annual holiday adjustment schedule in advance. Employers may adopt this schedule, provided that employees are granted leave on the statutory public holiday itself.

  • Overtime Compensation:

    • Work performed on a statutory public holiday must be compensated at no less than 300% of the employee’s normal hourly wage. Compensatory leave may not be granted in lieu of such overtime pay.

Working Hours

Standard Working Hours

  • Daily: 8 Hours
  • Weekly: 40 Hours

Rest Time

Employers must ensure that employees are provided with at least one rest day per week.

Overtime Restrictions

  • Where business or production needs require extended working hours, the employer may do so after consultation with the trade union and the employees:

    • Generally, overtime must not exceed one hour per day.
    • For special circumstances, and provided the employee’s health is safeguarded, overtime may extend to a maximum of three hours per day, but total overtime must not exceed 36 hours per month.

  • Exceptions: The above limits do not apply in the following circumstances:

    • Natural disasters, accidents, or other emergencies that threaten employees’ life, health, or property and require urgent handling.
    • Breakdowns of production equipment, transportation lines, or public facilities that affect production or public interests and require immediate repair.

Overtime Compensation

  • Overtime on a normal working day must be compensated at no less than 150% of the employee’s normal hourly wage.
  • Overtime on a rest day, where compensatory time off cannot be arranged, must be compensated at no less than 200% of the employee’s normal hourly wage.
  • Overtime on a statutory public holiday must be compensated at no less than 300% of the employee’s normal hourly wage. Compensatory leave may not be granted in lieu of such payment.

Exemptions from Overtime Compensation

Employees approved by the labour administrative authority to work under a flexible working hours system (such as senior management personnel, field-based employees, and long-distance transport drivers), or under a comprehensive working hours system (commonly applied in industries such as construction and transportation), will not be regarded as exceeding statutory working hours, provided that their total working hours remain within the approved limits of the applicable system.

Probation Period

Duration

  • For contracts with a term of more than three months but less than one year: probation must not exceed one month.
  • For contracts with a term of more than one year but less than three years: probation must not exceed two months.
  • For fixed-term contracts of more than three years and for open-ended contracts: probation must not exceed six months.
  • No probation period may be agreed for task-based contracts or contracts with a term of less than three months.

Additional Rules

  • An employer may agree on a probation period with an employee only once.
  • The probation period forms part of the employment contract term.
  • If an employment contract stipulates only a probation period without specifying a contract term, the probation clause is invalid and the stated probation period will be deemed the term of the employment contract.

Leave

Annual Leave

  • Employer Type: Joint employer.

  • Eligibility:

    • Employees who have been continuously employed for at least 12 months are entitled to annual leave.

    • Exceptions – no entitlement for the relevant year:

      • Employees who legally enjoy winter and summer vacations, and the total vacation days exceed statutory annual leave entitlement.
      • Employees who have taken more than 20 days of personal leave in aggregate, with wages paid according to applicable regulations.
      • Employees with cumulative service of 1–10 years who have taken more than 2 months of sick leave.
      • Employees with cumulative service of 10–20 years who have taken more than 3 months of sick leave.
      • Employees with cumulative service of 20 years or more who have taken more than 4 months of sick leave.

  • Length of Annual Leave:

    • 1–10 years of cumulative service: At least 5 days.
    • 10–20 years of cumulative service: At least 10 days.
    • 20 years or more: At least 15 days.
    • Statutory public holidays and rest days are not counted as annual leave.
  • Allowance: Annual leave is paid at the employee’s normal wage rate, including basic salary, bonuses, allowances, and subsidies, but excluding overtime pay.

  • Compensation for Unused Leave:

    • Upon termination, the employer must make a one-time payment on the employee’s last working day for:

      • Unused annual leave accrued in the completed year.
      • Unused annual leave accrued in the partially completed year, pro-rated based on months worked.
    • Compensation is paid at 300% of the employee’s normal daily wage, inclusive of wages already paid.

Sick Leave / Medical Treatment

  • Eligibility:

    • Enterprise employees unable to work due to illness or non-work-related injury are entitled to sick leave.
    • If the employee remains unable to work after exceeding the statutory maximum medical treatment period, the employer may terminate the employment contract in accordance with the law.

  • Duration:

    • Determined based on medical advice.
    • Maximum duration (during which the employer may not terminate the contract) depends on total years of service and years of service with the employer, ranging from 3 to 24 months.
  • Sick Leave Pay: Not less than 80% of the local minimum wage, subject to local regulations.

Maternity Leave

  • Eligibility:

    • Pregnant employees must submit a written maternity leave application with a medical certificate at least 15 days in advance.
    • Leave becomes effective once confirmed by the employer.

  • Duration:

    • Standard leave: 98 days, including 15 days of prenatal leave.
    • Dystocia: +15 days.
    • Multiple births: +15 days per additional infant.

    • Miscarriage:

      • Before 4 months: 15 days.
      • After 4 months: 42 days.
    • Regional variations: 158–365 days across provinces, autonomous regions, and municipalities.

  • Maternity Allowance:

    • Paid at 100% of the employee’s average daily wage, primarily via maternity insurance.
    • If the maternity allowance is less than the wages, the employer must make up the difference.
    • If the allowance equals or exceeds the wages, no additional payment is required.

Other Leave Types

  • Paternity / Nursing Leave:

    • Male employees are entitled to leave for childbirth in accordance with local regulations.
    • Duration: Typically 10–30 days, depending on the province.
    • Wages paid at normal rate.

  • Parental Leave:

    • Eligible couples may take leave annually before their child reaches three years old.
    • Duration: 5–20 days, subject to local regulations.
    • Wages paid at normal rate.

  • Breastfeeding Breaks:

    • Female employees with infants under one year are entitled to 1 hour per day.
    • Multiple births: +1 hour per additional infant.
    • Fully paid.
  • Pregnancy Protection Leave: Granted when certified by a doctor; treated as sick leave.

  • Marriage Leave:

    • National standard: 3 days.
    • Provincial standards: Typically 3–30 days.
    • Fully paid.
  • Bereavement Leave: Employers may grant 1–3 days at discretion, fully paid.

  • Elderly Care Leave:

    • Caregivers of elderly persons (usually 60+) requiring hospitalisation may apply.
    • Duration: 5–20 days depending on local regulations.
    • Fully paid.

Termination and Compensation

Notice Period

Mutual Termination

  • Termination by mutual agreement between the employer and the employee.
  • No prior notice required.

Unilateral Termination by the Employee

  • The employee may terminate the employment contract if:

    • The employer fails to provide labour protection or working conditions as agreed in the contract.
    • The employer fails to pay remuneration in full and on time.
    • The employer fails to make social insurance contributions in accordance with the law.
    • The employer’s rules and regulations violate applicable laws and infringe upon the employee’s lawful rights and interests.
    • The employment contract was concluded or modified through fraud, coercion, or exploitation of the employee’s hardship, contrary to the employee’s true intention.
    • The employer forces the employee to work through violence, threats, unlawful restriction of personal freedom, or requires dangerous operations in violation of safety regulations, thereby endangering the employee’s personal safety.
  • In the above circumstances, the employee may terminate the contract immediately without prior notice.

Unilateral Termination by the Employer

  • Immediate Termination (No Notice Required)

    The employer may terminate the contract without prior notice if the employee:

    • Is proven unqualified during the probation period.
    • Seriously violates the employer’s rules and regulations.
    • Commits gross negligence, dereliction of duty, or engages in malpractice for personal gain, causing significant damage to the employer.
    • Establishes an employment relationship with another employer that materially affects the performance of duties and refuses to rectify the situation.
    • Concludes or modifies the contract through fraud, coercion, or exploitation of hardship.
    • Is held criminally liable in accordance with the law.

  • Termination with 30 Days’ Notice or Payment in Lieu

    The employer may terminate the contract by providing 30 days’ prior written notice or one month’s wage in lieu of notice where:

    • After the statutory medical treatment period, the employee is unable to resume original duties or perform alternative work arranged by the employer due to illness or non-work-related injury.
    • The employee is incompetent and remains so after training or reassignment.
    • Objective circumstances underlying the contract have materially changed, rendering performance impossible, and no agreement on amendment can be reached after consultation.

Circumstances Restricting Termination

An employer may not terminate an employee in the following circumstances:

  • Employees exposed to occupational hazards who have not undergone required pre-departure occupational health examinations, or who are suspected of occupational disease and are under diagnosis or medical observation.
  • Employees who have suffered occupational diseases or work-related injuries and are confirmed to have lost or partially lost labour capacity.
  • Employees who are within the statutory medical treatment period due to illness or non-work-related injury.
  • Female employees who are pregnant, on maternity leave, or breastfeeding.
  • Employees who have worked continuously for more than 15 years and are less than five years from the statutory retirement age.

Statutory Economic Compensation

Circumstances Where Compensation is Payable

Statutory economic compensation is payable where:

  • The employee terminates the contract due to the employer’s fault.
  • The employer proposes termination and reaches mutual agreement with the employee.
  • The employer lawfully terminates the contract (for reasons not involving employee misconduct) with 30 days’ notice or payment in lieu.
  • The employer implements a lawful workforce reduction due to operational or business difficulties.
  • A fixed-term contract expires, except where the employer offers renewal on the same or more favourable terms and the employee declines.
  • The employer is declared bankrupt.
  • The employer’s business licence is revoked, the employer is ordered to close, is deregistered, or resolves to dissolve early.

Calculation of Statutory Economic Compensation

  • Compensation is calculated based on the employee’s length of service, at one month’s wage for each full year of service.
  • Service of six months or more but less than one year is counted as one full year; service of less than six months is compensated at half a month’s wage.
  • “Monthly wage” refers to the employee’s average monthly wage during the 12 months preceding termination or expiry of the contract.

  • Where the employee’s monthly wage exceeds three times the local average monthly wage published by the municipal government for the preceding year:

    • Compensation is calculated based on three times the local average wage; and
    • The maximum compensable service period is capped at 12 years.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation:
    The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management:
    We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Chinese regulations.
  • Contributions and Taxes:
    Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
  • Compliance with Minimum Wage and Working Hours:
    We guarantee that your employment practices adhere to China’ minimum wage and working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management:
    Implement and manage leave policies that comply with Chinese laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance:
    Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services:
    Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in China

Unlock your growth potential with BIPO’s Employer of Record service in China. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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