Guide to hiring in China

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• Strict legal requirements for employment contracts: Employers must provide a written employment contract, drafted in Mandarin Chinese, to every employee at or before the start of work. Failure to sign the contract within one month incurs a financial penalty of double the employee's monthly wage for each month it remains unsigned (up to one year).

• Mandatory statutory benefits and high employer burden: China mandates a "5+1" benefit system, which includes five types of social insurance (Pension, Health, Unemployment, Work Injury, Maternity) and the Housing Provident Fund. The total cost, or employer burden rate, for these mandatory contributions and other costs is approximately 30–40% on top of employee salaries.

• Streamlined hiring via employer of record (EOR): Establishing an entity (like a China subsidiary) can take months and involves numerous steps (business license, tax registration, bank account, etc.). To hire full-time employees faster and compliantly without setting up an entity, companies can utilize an Employer of Record (EOR) solution, such as G-P EOR.

Kina har världens näst största ekonomi och en befolkning på över 1.4 miljarder människor. Landets växande medelklass är en viktig konsumtionsdrivare. Kinas välutvecklade infrastruktur, inklusive sju av världens största containerhamnar och ett omfattande höghastighetsjärnvägsnät, stöder inhemsk distribution och global export. Detta integrerade ekosystem gör det attraktivt för globala företag.

Before expanding into China, you’ll need to understand contracts, taxes, wages, benefits, and other employment laws. Our guide will tell you everything you need to know about hiring in China.  

What to know before hiring in China

If you’re expanding your business into China for the first time, there are important legal requirements to be aware of. These norms and laws influence hiring practices in China and many aspects of the employer-employee relationship, including compensation and benefits. 

G-P Gia™, our AI-powered global HR agent, can answer your toughest compliance questions across 50 countries — including China — and all 50 U.S. states. Minska ditt beroende av externa rådgivare och minska tiden och kostnaden för efterlevnad med upp till 95 % med Gia.

Here are five things to know about hiring in China.

1. Languages in China

Kina erkänner 56 etniska grupper, och det finns nästan 300 levande språk i hela landet. Denna mångfald är en grundläggande aspekt av den kinesiska kulturen och samhället. Standard Mandarin är det officiella språket som talas av över 1.1 miljarder människor i världen. Detta gör det till det näst mest talade språket globalt. Dess användning i företag, regering och utbildning är utbredd över Kina. 

Omkring 10–25 miljoner människor i Kina talar engelska med viss kompetensnivå. Engelska kunskaper är högre i större städer som Shanghai och Peking.

2. Anställningsavtal i Kina

Employers in China have to provide a written employment contract to every employee. The contract should be signed at or before the commencement of work. If the contract isn’t signed within one month of the employee starting, the employer must pay double the employee’s monthly wage for each month the contract remains unsigned (up to one year). 

A compliant employment contract in China has to include:

• Employer’s full name, registered address, and legal representative or principal person in charge

• Employee’s full name, address, and valid identification number

• The type of contract (fixed-term, open-ended, or project-based)

• Job description and place of work

• Arbetstid, vila och ledighetsrättigheter

• Compensation details (salary in Chinese Yuan Renminbi, payment frequency, and any bonuses)

• Social insurance obligations (both employer and employee contributions)

• Occupational protection, working conditions, and protection against occupational hazards

• Termination conditions and procedures

• Any other items required by law or mutually agreed upon

Contracts should be drafted in Mandarin Chinese. If a bilingual contract is used, the Chinese version prevails in case of discrepancies.

3. Wages and working hours in China

The standard workweek in China is no more than eight hours per day and 40 hours per week. This is set out by the Labor Law and the State Council’s Regulations on Employee Working Hours. Employees get at least one full rest day per week.

Overtime pay in China breaks down as follows:

• Workday overtime: At least 150% of the normal wage for extra hours worked

• Rest day overtime: At least 200% of the normal wage if compensatory time off can’t be arranged

• Statutory holiday overtime: At least 300% of the normal wage. Compensatory time off is not allowed as a substitute.

Overtime should not exceed one hour per day, or three hours in special circumstances, and must not exceed 36 hours per month.

There’s no national minimum wage in China. Minimum wages are set by each province, municipality, or autonomous region. For example, as of september 2025, Beijing’s minimum wage is 27.7 yuan per hour and 2,540 yuan per month. 

There’s no legal requirement to provide a 13th-month or annual bonus in China. However, it’s a customary practice, and many employees expect it as part of their total compensation.

4. Statutory benefits in China

Employees in China get the following five types of social insurance, plus the housing fund. These are:

• Pension insurance: Provides retirement income security

• Health insurance: Covers nonoccupational medical expenses, including outpatient and hospitalization 

• Unemployment insurance: Offers financial support to employees who are involuntarily unemployed

• Work-related injury insurance: Compensates for injuries or occupational diseases contracted during employment

• Maternity insurance: Supports medical expenses and provides income replacement related to childbirth (now often merged with medical insurance, but still a statutory benefit) 

• Housing provident fund: A mandatory savings program to help employees with housing-related expenses, such as purchasing, renovating, or repaying a mortgage

Both employers and employees contribute to these funds, except for work-related injury and maternity insurance, which are funded only by the employer. Contribution rates are set by local governments and vary by city and region. Each locality sets minimum and maximum salary thresholds for calculating contributions, which are typically adjusted annually. Employers are responsible for registering employees and remitting both employer and employee contributions to  the relevant authorities each month.

While the statutory “5+1” benefits are mandatory, many employers offer supplemental benefits (such as higher housing fund contributions, supplemental health insurance, or additional allowances) to attract and retain top talent. This is a common and effective strategy, especially in competitive labor markets.

5. Holidays and required leave in China

China has 13 national holidays. These include New Year’s Day, an extended Spring Festival (Lunar New Year), Qingming Festival, Labor Day, Dragon Boat Festival, Mid-Autumn Festival, and National Day, with some holidays spanning multiple days (e.g., Spring Festival and National Day). If a public holiday falls on a weekend, the government moves the day off to a nearby workday, making sure employees receive the full number of paid holidays.

Annual leave is based on years of service (across all employers):

• 1–10 years: 5 days

• 10– 20 years: 10 days

• 20+ years: 15 days

If leave can’t be arranged or carried over, the employer must pay 300% of the employee’s average daily wage for each unused day (this includes the normal wage plus double compensation). Unused leave can be carried over to the next year with employee consent, but has to be used within that year.

Sick leave entitlements and pay are set by local regulations and depend on the employee’s length of service and work history. Sick leave can range from a few months to up to two years. Sick leave pay is between 60–100% of the employee’s regular wage, but can’t fall below 80% of the local minimum wage.

Top hiring hubs in China

Some cities in China are known for particular industries. Att veta vad varje stad har att erbjuda gör att du kan fokusera dina anställningsinsatser på rätt plats och fylla roller snabbare. 

The top talent hubs in China are:

• Beijing is the capital city and a major center for government, technology, finance, education, and media. It’s home to many multinational headquarters, state-owned enterprises, and a growing startup scene.

• Shanghai is China’s largest city and a global financial hub. It’s known for its finance, technology, trade, and professional services sectors and attracts big global investment and talent.

• Shenzhen is a leading technology and innovation center, often called China’s Silicon Valley. The city headquarters for major tech companies like Huawei and Tencent. It’s strong in electronics, manufacturing, and financial services. 

• Guangzhou is the capital of Guangdong Province and a manufacturing and trade hub. It’s home to major industries, including automotive, electronics, and logistics.

• Chengdu is the economic and technology center of western China. The city is known for its growing IT, finance, and automotive sectors. It’s popular for tech startups and R&D centers.

Key industries in China

Understanding China’s main industries allows you to benchmark salaries and benefits. Du kan använda denna insikt för att göra smarta val om var du ska investera och få din personalstyrka att växa. 

The main industries in China include:

• Manufacturing: China is known as the “world’s factory,” producing electronics, machinery, textiles, automobiles, steel, and consumer goods.

• Technology and electronics: Major sectors include IT, telecommunications, semiconductors, and consumer electronics. China is home to global tech giants like Huawei, Tencent, Alibaba, and Xiaomi.

• Automotive: China is the world’s largest automotive market, with strong domestic brands and big global investment. Electric vehicles (EVs) and battery manufacturing are fast growing areas.

• Finance and banking: Shanghai and Shenzhen are major financial centers. The sector includes banking, insurance, asset management, and fintech.

• E-commerce and retail: China leads the world in e-commerce, with platforms like Alibaba, JD.com, and Pinduoduo. There’s fast growth in online retail, logistics, and digital payments.

Kostnad för att anställa en medarbetare i Kina

Whether you’re hiring one employee or an entire team in China, expenses are inevitable. Budget för följande:

• Inställning av enhet (såvida du inte samarbetar med en registrerad arbetsgivare)

• Platsannonser

• arbetskraftskostnader för granskning av arbetssökande

• Lönehantering

• Skatt

• löner

• Förmåner

• bonusar

• traktamenten,

• försäkring

• Resor

• Översättare (om tillämpligt)

According to G-P Verified Sources fromGia, the employer burden rate in China, which includes costs triggered on top of salaries, is approximately 30–40%. 

What does a company need to hire employees in China?

Make sure you cover these essentials before expanding your team in China:

• Get a business license from your local Administration for Market Regulation (AMR). 

• Register with the local tax bureau to get your taxpayer identification number (TIN).

• Set up tax accounts for value-added tax (VAT), corporate income tax, and other applicable taxes.

• Öppna ett lokalt bankkonto.

• Register your company and employees with the local Social Insurance Bureau and Housing Provident Fund Management Center.

• Set up a compliant payroll system to calculate and withhold taxes, social insurance, and housing fund contributions.

• Register for other local requirements (e.g., foreign exchange registration, customs registration for import/export businesses).

• Keep proper HR records and comply with local labor law reporting and filing obligations.

Setting up a China subsidiary can take weeks or months. Use G-P EOR to hire full-time employees in China without setting up your own entity. Build your team in China at a lower cost and with peace of mind that you’re doing so compliantly.

Steg för att anställa i Kina

The hiring process in China is similar to the one you’re likely familiar with in your own country. Anställningsprocessen följer fem grundläggande steg: annonsera jobbet, utvärdera ansökningar, intervjua kandidater, skicka jobberbjudanden och onboarding av nya medarbetare.

1. Advertising job vacancies in China

Define the role, responsibilities, qualifications, and compensation package. Make sure the job description is compliant with Chinese labor laws. 

51job, Zhaopin, and Liepin are popular job sites in China.  

2. Evaluating job applications in China

Samla in ansökningar och granska CV:n. Screen candidates based on their qualifications, experience, and fit for the role. 

3. Interviewing candidates in China

Intervjua kandidater som gjorde det på din lista. Du kan göra dessa intervjuer personligen eller virtuellt. Gia can help you create questions that follow antidiscrimination laws in China, so you can find the best fit for the role while complying with local regulations. 

Use skills assessments, technical tests, or psychometric evaluations if relevant to the role. Check references and verify qualifications.

4. Making job offers in China

Kontakta din valda kandidat för att erbjuda dem en tjänst på ditt företag. Draft  a compliant written employment contract in Chinese (bilingual if needed), including all mandatory clauses (job title, compensation, benefits, working hours, etc.). Both parties have to sign the contract before the employee starts work.

5. Onboarding new employees in China

Nu kan du onboarda nyanställda. Register your new hire with the local social insurance and housing fund bureaus. Collect required documents (ID, diplomas, bank account details, etc.) and provide orientation, training, and access to company systems. 

Make sure that payroll, social insurance, and tax withholdings are set up correctly and keep accurate HR records.

Om du arbetar med en registrerad arbetsgivare som G-P behöver du inte oroa dig för den administrativa bördan med onboarding. Vi kommer att effektivisera processen så att du kan fokusera på att utbilda din nya medarbetare och integrera dem i din företagskultur. 

Hiring contractors in China

Working with independent contractors in China can be a cost-effective way to test the market and build a presence, without the commitment of full-time employees. Contractors based in China understand local consumer behavior, rules, and business practices. De kommer att vara redo att börja arbeta snabbt med sin egen utrustning och etablerade arbetsprocesser. 

Genom att anställa entreprenörer kan du enkelt anpassa din personalstyrka baserat på dina affärsbehov, utan komplexitet och kostnader för anställning. 

Before you enter an agreement with an independent contractor in China, consider the following:

1. Employees vs. independent contractors in China

Det är viktigt att förstå skillnaden mellan anställda och oberoende entreprenörer. In China, employers hire employees to do work and, in return, pay them a regular salary and benefits. Oberoende entreprenörer tillhandahåller tjänster. Till skillnad från anställda sätter entreprenörer sina scheman, använder sin egen utrustning och arbetar med specifika projekt snarare än att ha en pågående roll.

2. How to pay contractors in China

G-P Contractor™ bort den röriga, tidskrävande processen att anställa och betala internationella entreprenörer. Du kan skapa och utfärda kontrakt och betala entreprenörer med bara några klick, samtidigt som du säkerställer en kompatibel process.

Hire employees and contractors in China with G-P

Våra SaaS- och AI-drivna produkter – EOR, Contractor och Gia – stödjer företag när de bygger och hanterar globala team. 

G-P är den erkända ledaren inom global sysselsättning med mer än ett decennium av erfarenhet, det största teamet av HR-, juridiska och efterlevnadsexperter och en global patentskyddad kunskapsbas.

Make your expansion to China easier with G-P. Kontakta oss eller boka en demo idag.

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