China
Remote makes employment in China easy. With our localized contracts, easy invoice management, and best-in-class compliance, you can grow your global team with confidence. Note that we can currently employ contractors in China but our employer of record services are not yet live.
- Capital city
Beijing
- Currency
Chinese yuan (¥, CNY)
- Languages
Mandarin, Cantonese, Hunanese, and others
- Population size
1,400,050,000
Facts & Stats
- Capital city
Beijing
- Currency
Chinese yuan (¥, CNY)
- Languages
Mandarin, Cantonese, Hunanese, and others
- Population size
1,400,050,000
- Ease of doing business
Very easy
- Cost of living index
42.54 (2021)
- Payroll frequency
Monthly
- VAT - standard rate
13%
- GDP - real growth rate
6.1% (2019)
Since Deng Xiaoping launched the Open Door policy in late 1978, China has seen rocketship growth over the past four decades, transforming a strictly communist economy into a global superpower.
Today, China is a staggering multi-trillion dollar economy dominating entire industries from manufacturing to finance, setting the pace for so much technological innovation.
China’s labor market is vast, highly educated, and home to an enormous an untapped collection of expats and locals open to remote work. The sheer size and potential of China markets makes international expansion here alluring to any growth-focused employer.
Keep in mind that local expertise is almost essential in nearly every instance due to the truly unique nature of doing business here. More and more Chinese professionals are multilingual with fluency in English as well as local dialects. It’s also worth noting that China’s huge expanse makes every pocket of the country different. The culture, food, climate, language, and business practices of each province often varies dramatically, but for those companies determined enough to find success in China – the potential rewards are immense.
Grow your team in China with Remote
You can pay contractors now in China with Remote. Note that we are busy building our own entity in China to provide you with the best possible employment solutions for your employees, but our employer of record service is not yet live in this country.
To employ in China, companies must own a local legal entity in the country or work with a global employment solution. Developing the processes required to manage payroll, benefits, taxes, and onboarding in countries like China can get complicated fast, especially without localized expertise.
If you're looking to start hiring in a country like this, partnering with a global employment solution like Remote makes it easy for your company to employ workers quickly, cost-effectively, and in full compliance with all local legislation.
In the countries where we do offer our EOR services, Remote takes on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.
Risks of misclassification
China, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in China may lead to fines and penalties for the offending company.
Employing in China
Provisions for employee protections and workers’ rights are spelled out in the Chinese Constitution and the Labour Law of 1994, both of which guarantee protections against discrimination based on age, religion, gender expression, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in China.
Minimum wage
The minimum wage in China is fixed on a regional basis. Workers in Liaoning earn at least 1,120 RMB ($175.18) per month while the minimum wage in Shanghai is more than double that figure at 2,590 RMB ($405.11) per month.
Competitive benefits package in China
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity”, which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
We have no active plans to operate in China but our benefits packages for all of the countries we support are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in China
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in China.
16%
Pension
0.8%
Unemployment Insurance
9.8%
Medical Insurance
0.16 - 1.52%
Injury Insurance
12%
Housing Fund
Types of Leave
Employees are not entitled to any paid leave for their first year on the job. This changed from after the first and until tenth year, during which employees are entitled to five days off annually.
Employees with at least 10 years of service get 10 days off annually, increasing to a maximum of 15 days after 20 years of employment.
Employment termination
Termination process
Employment contracts in China can only be terminated with clear justification and severance payment made to the concerned employee.
Notice period
30 days, although payment can be made in lieu of notice.
Severance pay
Employees are entitled to a month’s pay for every year worked, with any tenure up to six months counted as a year. Employees with less than six months’ tenure are entitled to half a month’s pay if they’re let go.
Probation periods
Probation periods can last anywhere from a month to six months, depending on the nature of the employment contract.