Employer of Record (EOR) in China


With a population of more than 1.4 billion, China is apparently a massive country with numerous talents. As one of the emerging markets since the 2000s, China has its own potential to attract both retail and virtual businesses. Planning to build a remote team in China but having no idea of it? You will acquire a more comprehensive understanding of the labor market in China after reading this article. Moreover, we will include how we can help you with the Employer of Record (EOR) in China.

Working hours

The standard working hour per week is 40, which is 5 full days with 8 hours each day.

Payroll in China

Basic required regulations
  • Salaries should be distributed in terms of Renminbi.
  • If employers want to pay their employees in China through bank deposits, they should deposit the amount of salary on time (mentioned in contracts).
  • If employers want to pay their employees in China in cash, it requires legal signatures. If certain employees will not be able to get the salary by themselves, they should entrust others to get it.
Minimum wages

China’s minimum wage depends on provinces or cities. Among all provinces and cities, Beijing has the highest hourly minimum wage, while Shanghai has the highest monthly minimum wage.

Overtime payments

Employees working more than eight hours per day should receive compensation of at least 150% of their basic income for overtime work.

Mandatory welfare in China

Employers are supposed to contribute to the “Social insurances and Housing provident fund” for their employees.

This includes:

  • Endowment insurance
  • Medical insurance
  • Unemployment insurance
  • Work-injury insurance
  • Maternity insurance
  • Housing provident fund

Additionally, please note that employees also need to contribute some percentage to the housing fund, medical insurance, endowment insurance and unemployment insurance. The percentage may differ between cities. Nevertheless, employers will be fully responsible for work-injury insurance and maternity insurance.

  • Annual leaves
    • According to the Regulation on Paid Annual Leave for Employees, the days of annual leave shall be determined according to the employee’s accumulative working time. It shall cover the employee’s working time at the same or different employers and the hours deemed to be working time by any law, administrative regulation, or State Council provisions.
    • If the employee has worked for 1 year but less than 10 years in total, he or she can take a maximum of 5 days of annual leave.
    • If he or she has been working for 10 years but less than 20 years in total, he or she can take a maximum of 10 days of annual leave.
    • If he or she has been working for 20 years or more in total, he or she can take a maximum of 15 days of annual leave.
  • Rest day
  • Statutory holidays
  • Maternity leaves
  • Sick leaves
  • Parental leaves
  • Marriage leaves
  • Compassionate leaves, etc.

Taxation in China

China has a progressive tax rate for salary tax. It ranges from 3% to 45%, depending on which tax rank an employee falls into. As for the corporate income tax, the standard tax rate is 25%. Moreover, the tax rate for small enterprises with less than $3 million in profit will be 20%. Also, the tax rate for high- and new-technology enterprises (HNTE) will be 15%.

Recruitment in China

There are generally three ways to hire employees in China.

  • Register a legal entity
  • Cooperate with an employer that provides records.
  • Recruit independent contractors.

Please note that recruitment in China should strictly adhere to the employment law.

How can FastLane HR offer help?

FastLane HR aims to provide comprehensive and high-quality advisory services in EOR, including payroll, taxation, recruitment, labor welfare, etc. No matter which type of business you are going to operate, you can immensely enjoy cost-effective services when building your remote team with our professional help. Besides, we ensure all services are compliant with regulations and laws. Should you have any inquiries regarding the EOR services, please contact us via WhatsApp, WeChat, or phone calls. You can also schedule a meeting with us for further information. We look forward to seeing you.