Starting Work in China: 10 Facts You Need to Know

| July 22nd, 2019
Image by christels from Pixabay

China is a country with a diverse economy. For a long time, it has been a leader in businesses and global markets, creating employment opportunities for workers and employers alike. The boosting economy has led to higher income, and in a country with low cost of living, that translates to a great way of life. It also means time and money to travel China’s diverse regions, eat its delicious foods, and mingle with the locals. 

With all the benefits China has to offer, it’s still important to consider what goes into employing or working there before making the move. That’s because, just like any country, local regulations and laws, contract obligations, and payroll procedures must be followed. 

Before hiring a foreign workforce or taking the leap oversees, its best to get an understanding of China’s payroll laws; this is to ensure they are cohesive with the structure of your company or the employment standards you want. 

So, if you’ve ever thought about hiring or working overseas in China, here are 10 facts you need to know.

  1. Minimum wage

    China’s minimum wages vary across the country’s regions, with the highest in Shanghai at 2,480 CNY. The lowest paid minimum wages can be almost half the rate.

  2. Payroll cycle/pay date

    Payments are provided monthly though pay slips typically sent though a secure channel on WeChat (Chinese WhatsApp). This graphic explains a Chinese pay slip in more detail. Paydays happen between the 10th and 20th or are paid during statutory holiday, marriage leave or funeral leave.

  3. Working hours/overtime pay

    A standard workweek in china is five days, and eight hours each of those days, amounting to 40-hour work weeks. Flexible hours are allowed, and some companies still have 6-day work weeks. Overtime should not exceed 3 extra hours a day or 36 extra hours a month. For overtime on normal workdays, workers are paid 150%, overtime on rest days is 200%, and overtime of holidays is 300% a worker’s regular wage.

  4. Payroll taxes/SS

    Social insurance in China is comprised of pension, medical insurance, unemployment, maternity leave, workplace injury, and a housing fund. Employers and employees contribute to these funds, with contribution rate percentages dependent on city.

  5. Pension

    Both employers and employees contribute to the pension system, with employees contributing up to 8% of their wages and employers up to 20%.  Pension for professional men and women begins at age 60 after at least 15 years of contributions.

  6. Unemployment

    This contribution is also made by both the employer and employee with percentages ranging between Chinas regions; .2% up to 2%. To claim unemployment, contributions must be made for a period of at least one year. Benefits from unemployment are dependent on the length of time contributions have been made.

  7. Housing funds

    The housing fund bureau collects contributions made by employers and employees with contribution percentages varying across the country. This fund is established to provide employees with savings to help with the purchasing of a house.

  8. Termination/notice

    Terminating an employee can be quite difficult once the probation period has passed. That’s because even if an employee has shown incompetence, they are to be retrained or possibly even shifted roles before than can be fired. The easiest way for termination is by mutual agreement. It is highly advised that first time employees be on fixed term contracts and extend the contract once the employee has proven competent. The notice period should be at least 30 days from both the employer and employee. Employers may give a one moth wage in lieu of notice if they wish.

  9. Severance pay

    Dismissed employers receive severance pay unless they have been terminated due to inaptitude, breach of company law, or were still on a probation period. Severance payments depend on the length of employment with the typical payout being one month’s pay for each year of employment. This is capped at 12 months.

  10. Leave

    Annual leave in China can be quite limited, with a minimum of 5 annual leave days for 1–10 working years, 10 days annual leave for 10-20 working years, and 15 annual leave days for more than 20 years of employment. Employees with less than a year of service are not required leave.  Other paid leaves are, sick leave, work related injury leave, bereavement leave, and maternity leave. 

47 Comments | Leave a comment | Comment feed

  1. My former students from China gave me heads-up for having a job there. The pay they have were really good, but the cost of living was also high.

  2. Jack Bell says:

    Every country has its own labor laws and we should respect the labor laws in China especially when you work there. revive

  3. These are indeed true. I have friends who work there and I think it still pays good.

  4. [link] says:

    I love the article. This is so amazing!

  5. Thanks for this lovely tips! Great

  6. Interesting facts about this country. Got to know it thanks for sharing run 3 unblocked

  7. Check this says:

    Not easy to live in China. Most especially these days.

  8. click here says:

    I suggest you live in another country. China is overpopulated already.

  9. China is still an amazing country according to a friend who lives and works there. Too populated, yes, but is still a great place.

  10. Rod says:

    really interesting post Chinahush…
    You did not speak about VISA… and it is kind of necessary no?

  11. Cassandra D. Everhart says:

    I have to say the wonderful research this article has is greatly remarkable !!

  12. Alex Shephard says:

    Thanks for these pointers. I really want to work there amidst the crisis.

  13. Grateful you have posted this. Thanks a lot! 🙂

  14. Hey. I go through your post its really very amazing.We are giving sexy chat on the best platform – Sex in Berlin

  15. This is very informative! This will help you learn more about China!

  16. site says:

    Your opinion is great, it is exactly what I think. If we go in that direction, everything will become much more perfect

  17. jenny says:

    This is awesome, thank you! landscapers gold coast

  18. Ben says:

    This article is very helpful, really appreciate it! landscaping ipswich

  19. Will Grayson says:

    Wow! thanks for these great tips admin. |

  20. Thanks for sharing this blog. Keep it up quickly…..Sextreffen in Luzern

  21. Thanks so much for this information. This is awesome!

  22. I doubt if this is a good time for foreign investment. I wonder if the economy will pick up within the next one or two years.

  23. This is a place I’ve always wanted to visit!

  24. KillerSales says:

    Great article! Still on my bucketlist

  25. Taidam says:

    Second world greatest economy to me

  26. Click here says:

    Thanks for this great information.

  27. Nick Voz says:

    Hi guys. Thank you for sharing very interesting information. I will be glad if I help someone too. As well as helping you to have a good time reading! Guys we are always looking for honest and reliable service and nobody likes to spend their free time, which can be spent on traveling, friends and self-development. Isn’t it? If i’m right, there solution of all yours problems! There is a very cool service that has been helping schoolboys and students with their homework for a very long time. They are professionals and know what they are doing, you can definitely rely on them! That’s all here you are welcome! Thanks! Have a good day and be happy!

  28. This is very useful post for me. This will absolutely going to help me in my project.sarms vs legal steroids

  29. Awesome post you’ve shared.

  30. Thanks for this great post.

  31. Any one have an dea of kitchen cleaning services we can partner with in China?

  32. jack says:

    I never knew about these Facts, by reading your article , i came to know about these facts. Hostgator Black Friday 2020

  33. Due to the big population in China, working there is such a challenge.

  34. Our site says:

    Thanks for this great information.

  35. James Hinder says:

    I was going to work in China but started working in Hamilton Ontario instead

  36. Brendan Mathews says:

    produk beton pracetak yang dibuat selalu sudah via pengawasan dan kontrol kwalitas yang ketat mulai bahan … selengkapnya

  37. In October 2020, more people died by suicide in Japan than were killed by the novel coronavirus in 10 months. What a disaster.

  38. Click here says:

    Cement concrete is an important construction material. Its importance is increasing every day. It is a composite material consisting of a binding material, which is essentially cement, inert mineral Filler, known as aggregates and water.

Leave a Comment

Prove you are human! * Time limit is exhausted. Please reload CAPTCHA.

Kepard - Premium VPN Service

Latest Posts

6 Reasons to Visit China

marieb | October 3rd, 2019

Chinese Poker: a beginner’s guide

Arina Folk | December 5th, 2018

Recent Comments

Visit our web platform sex göppingen and enjoy free sexy chat all night long!» more

If you are looking for sexy chat you are on the right place – sex augsburg» more

Thank you for sharing this post, Visit our website: Snow Removal Winnipeg» more

erotische Kontakte in Bayern is one of the most interesting places to be for free sex contact» more

My good friend tell me about hot ladies form sextreffen in bayern so I telling you now. Check out and…» more

Subscribe by email

Enter your email address: