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Employer of Record (EOR) is a global employment solution that allows companies to legally hire local full-time employees without setting up a legal entity in the target country. YeeGoo provides EOR services covering 150+ countries, helping businesses save over 80% on HR costs. According to Deloitte's 2025 Global Human Capital Trends Report, companies using EOR services increase their internationalization speed by an average of 300%.

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Through the YeeGoo cloud platform, you can manage the employment, payroll and compliance of global employees in one stop. We support payroll payments in more than 80 major international currencies, with funds arriving on time in T+0 time. The platform provides automated tax calculation, social security contribution and compliance declaration services, allowing you to easily manage teams distributed in more than 150 countries and regions.

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China

Your quick guide on talent and labor compliance norms in China

(The data below is for reference only. You may refer to the official government websites or contact us for updates.)

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CapitalBeijing

CurrencyChinese Yuan Renminbi (CNY)

LanguagesStandard Mandarin Chinese (Putonghua)

Payroll FrequencyMonthly. A 13th-month salary before Chinese New Year is customary. IIT is withheld cumulatively.

GDP per Capitaapprox. $13,400 (2025, IMF estimate)

Employer Tax~32–40%

CapitalBeijing

CurrencyChinese Yuan Renminbi (CNY)

LanguagesStandard Mandarin Chinese (Putonghua)

Payroll FrequencyMonthly. A 13th-month salary before Chinese New Year is customary. IIT is withheld cumulatively.

GDP per Capitaapprox. $13,400 (2025, IMF estimate)

Employer Tax~32–40%

Talent Landscape Analysis

The most populous country, China, is also the world’s largest economy by GDP (based on PPP). China is the world’s largest manufacturing and exporting country and is one of the fastest-growing countries in the world. Currently, the country ranks the second most wealthy country among all other world economies.

Major economic Cities

Beijing, Shanghai, Suzhou

Skills in demand

AI and data engineering, semiconductor and hardware engineering, software development, finance and investment, and cross-border/e-commerce and supply-chain roles are in strong demand.

Salary Data

The average salary in China are mentioned below：

Employing in China

Chinese employers and employees are both protected under labor laws. It provides equal opportunity based on pay and promotion.

Employee Contract

Leave Policy

Payroll

Taxes

Offboarding & Termination

Visa and Immigration

Employee Contract

Basic

Chinese and English are the languages of employment contracts.

Probation Period

The usual probationary period followed in China is from one to six months.

13th Month Pay

Most companies pay the 13th-month salary as a bonus to their employees during the month of Lunar New Year or Spring Holidays.

Employee Benefits

Employers in China may provide the following benefits to their employees:

Floating bonus or Performance bonus
13th Month pay
Pensions
Maternity leave
Medical benefits
Employment insurance

Payroll cycle

The payroll cycle followed in China is monthly.

Minimum wage

The minimum wage varies in different provinces. It ranges from 1,450 RMB – 2,690 RMB per month.

Overtime pay

The standard working hours in China are 8 hours per day and 44 hours per week. Overtime work is only possible after consultation with any applicable trade union unless the situation is an emergency. Overtime is limited to 1 hour per day, or 36 hours per month. Below are the rates for overtime pay:

Employer-Employee Payroll Tax

China Social Security contributions Include Pension, Medical, Maternity, Unemployment and Accidental which are mainly managed by the Ministry of Human Resources and Social Security (MOHRSS). Also, there is another contribution Housing Fund which is managed by the Ministry of Housing and Urban-Rural Development and the employer has to contribute 5% to 25% based on the city employee is based on.

Type / City	Shanghai	Shanghai
Social insurance items	Employee’s portion	Employer’s portion
Pension	8%	16%
Medical (including maternity)	2%	10%
Unemployment	0.5%	0.5%
Work-related injury	0%	0.16% to 1.52%
Total	10.5%	26.66% to 28.02%
Ceiling for monthly salary base	CNY 34,188	CNY 34,188

Type / City	Beijing	Beijing
Social insurance items	Employee’s portion	Employer’s portion
Pension	8%	16%
Medical (including maternity)	2%	9.8%
Unemployment	0.5%	0.5%
Work-related injury	0%	0.2% to 1.9%
Total	10.5%	26.5% to 28.2%
Ceiling for monthly salary base	CNY 21,884	CNY 21,884

Type / City	Guangzhou	Guangzhou
Social insurance items	Employee’s portion	Employer’s portion
Pension	8%	15%
Medical (including maternity)	2%	6.85%
Unemployment	0.2%	0.32% to 0.8%
Work-related injury	0%	0.16% to 0.12%
Total	10.2%	22.33% to 23.77%
Ceiling for monthly salary base	CNY 22,930 for pension; CNY 36,544 for medical; CNY 36,072 for unemployment	CNY 22,930 for pension; CNY 36,544 for medical; CNY 36,072 for unemployment

Employee Income

Tax For residents, the income tax rates are as follows:

Annual taxable income (CNY*) (1)	Tax rate (%)	Quick deduction (CNY)
0 to 36,000	3	0
Over 36,000 to 144,000	10	2,520
Over 144,000 to 300,000	20	16,920
Over 300,000 to 420,000	25	31,920
Over 420,000 to 660,000	30	52,920
Over 660,000 to 960,000	35	85,920
Over 960,000	45	181,920

*renminbi

For non-residents, the following tax rates are applicable:

Monthly taxable income (CNY)	Tax rate (%)	Quick deduction (CNY)
0 to 3,000	3	0
Over 3,000 to 12,000	10	210
Over 12,000 to 25,000	20	1,410
Over 25,000 to 35,000	25	2,660
Over 35,000 to 55,000	30	4,410
Over 55,000 to 80,000	35	7,160
Over 80,000	45	1,5160

VAT

The standard VAT rate in China varies from 0% to 13%.

Termination process

It is difficult to terminate an employment contract in China unless by mutual agreement or if an employment contract expires.

Notice period

Notice period varies depending on the length of employment. During the probationary period, it is between 3 to 30 days, and for permanent employees, it ranges from one to three months.

Severance pay

The severance pay is mandatory if applicable, and the amount varies depending on the length of the employment term. It is calculated as one month’s salary for each full year. For employees with high salaries within the area, the severance pay is capped at three times the local average wage.

Visa and Immigration

For any non-PRC passport holder, a work permit is required. Exceptions include Taiwan, Hong Kong and Macao residents. There occurs a grading evaluation for expatriate employees.

Employee Contract

Basic

Chinese and English are the languages of employment contracts.

Probation Period

The usual probationary period followed in China is from one to six months.

13th Month Pay

Most companies pay the 13th-month salary as a bonus to their employees during the month of Lunar New Year or Spring Holidays.

Employee Benefits

Employers in China may provide the following benefits to their employees:

Floating bonus or Performance bonus
13th Month pay
Pensions
Maternity leave
Medical benefits
Employment insurance

Leave Policy

Public and Provincial Holidays

Leave Information

Payroll

Taxes

Employer-Employee Payroll Tax

Type / City	Shanghai	Shanghai
Social insurance items	Employee’s portion	Employer’s portion
Pension	8%	16%
Medical (including maternity)	2%	10%
Unemployment	0.5%	0.5%
Work-related injury	0%	0.16% to 1.52%
Total	10.5%	26.66% to 28.02%
Ceiling for monthly salary base	CNY 34,188	CNY 34,188

Type / City	Beijing	Beijing
Social insurance items	Employee’s portion	Employer’s portion
Pension	8%	16%
Medical (including maternity)	2%	9.8%
Unemployment	0.5%	0.5%
Work-related injury	0%	0.2% to 1.9%
Total	10.5%	26.5% to 28.2%
Ceiling for monthly salary base	CNY 21,884	CNY 21,884

Type / City	Guangzhou	Guangzhou
Social insurance items	Employee’s portion	Employer’s portion
Pension	8%	15%
Medical (including maternity)	2%	6.85%
Unemployment	0.2%	0.32% to 0.8%
Work-related injury	0%	0.16% to 0.12%
Total	10.2%	22.33% to 23.77%
Ceiling for monthly salary base	CNY 22,930 for pension; CNY 36,544 for medical; CNY 36,072 for unemployment	CNY 22,930 for pension; CNY 36,544 for medical; CNY 36,072 for unemployment

Employee Income

Tax For residents, the income tax rates are as follows:

Annual taxable income (CNY*) (1)	Tax rate (%)	Quick deduction (CNY)
0 to 36,000	3	0
Over 36,000 to 144,000	10	2,520
Over 144,000 to 300,000	20	16,920
Over 300,000 to 420,000	25	31,920
Over 420,000 to 660,000	30	52,920
Over 660,000 to 960,000	35	85,920
Over 960,000	45	181,920

*renminbi

For non-residents, the following tax rates are applicable:

Monthly taxable income (CNY)	Tax rate (%)	Quick deduction (CNY)
0 to 3,000	3	0
Over 3,000 to 12,000	10	210
Over 12,000 to 25,000	20	1,410
Over 25,000 to 35,000	25	2,660
Over 35,000 to 55,000	30	4,410
Over 55,000 to 80,000	35	7,160
Over 80,000	45	1,5160

VAT

The standard VAT rate in China varies from 0% to 13%.

Offboarding & Termination

Visa and Immigration

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