Agile HRO

Country Explorer

China flag

Compliantly hire and expand your business in China

When it comes to employing and managing employees in China, there are specific procedures and regulations that must be followed.
China map
China is a country in East Asia. With a population exceeding 1.4 billion, it is the world’s second-most-populous country. China spans the equivalent of five time zones and borders fourteen countries by land. The country is divided into 33 province-level divisions, inclusive of 22 provinces, five autonomous regions, four municipalities, and two semi-autonomous special administrative regions. Beijing is the national capital, while Shanghai is the most populous city and largest financial center.




GDP per Capita

$17.701 trillion

Total GDP


Total Population


Human Development Index

UTC +8

Time Zone

Standard Chinese

Official Languages



9,596,961 km2 (3,705,407 mi2)

Land Area

Here's what you need to know

Collaborating with a local expert in employment and payroll in China can streamline the process and ensure that you’re meeting all the legal requirements while providing a supportive work environment for your employees.
Employment contracts are mandatory in China and must be written in Chinese. They should clearly outline:

Job title, duties, and responsibilities

Salary and benefits

Working hours and overtime pay

Leave entitlements (annual leave, sick leave, etc.)

Termination terms (notice period, severance pay)

Confidentiality clauses (if applicable)

Minimum Wage

Minimum wages are set at the provincial level in China and vary considerably. Major cities like Shanghai have higher minimum wages than rural areas.

Payroll Terms

Salaries are typically paid monthly in legal tender (Chinese Yuan) and must be paid within one month of the salary period ending. Employers are required to provide payslips with details of gross pay, deductions, and net pay.


China operates a progressive income tax system. Employees pay income tax based on their annual earnings, with rates ranging from 3% to 45%. Employers are required to withhold income tax at source and remit it to the government.

Social Insurance

Both employers and employees contribute to social insurance programs covering pensions, unemployment, healthcare, and maternity benefits. Contribution rates vary depending on location and industry.

China has standardized leave entitlements mandated by the Labor Law:

Annual Leave

Minimum of 5 days per year, increasing with service duration (up to 15 days).

Statutory Holidays

7 paid public holidays per year, with some spread over several days.

Sick Leave

Up to 14 days of paid sick leave per year with doctor's certification. Maternity leave and other extended leave may be offered by employers as additional benefits.

Probationary Period

Probationary periods are common in China and can be up to six months, though typically shorter (1-3 months) for white-collar jobs. During this time, termination can be easier for both employer and employee.

Termination of Employment

Termination of employment should follow the terms outlined in the contract or the Labor Law. Notice periods vary depending on the reason for termination and the employee's length of service. Severance pay may also be required under certain circumstances.

Download the full Employment & Payroll Guide to China

Enter your details and receive the full guide to your inbox

Looking to take on the global marketplace with confidence?

Fast-track your EOR quickly and compliantly with the local laws of any country. We are here to help you achieve your international business expansion challenges.
Quick Hassle-Free Market Entry
Agile will help you hire and onboard talent across countries within a week and even less in many cases. So, you can get up and running in a completely new country in a short period.
Cost Effective
Hiring employees without the need to set up a legal entity in countries will help save a lot of time, sometimes up to 85%. In addition, you will not have to worry about establishing a foreign entity and all the maintenance costs that come with it.
Employee Onboarding
As an expert in local laws and regulations, we can help you adhere to the local and national regulations, including the market norms. We offer a ‘ready-made’ HR support infrastructure that takes the guesswork out of hiring international employees.
Payroll Management
Agile handles international payroll processing in adherence to the local rules of a country’s local jurisdiction. It includes utilizing manual as well as automated processes to ensure the local workforce gets their pay after allowing all the right deductions.
Onsite HR & Legal Team
Our team comprises experts who offer local legal guidance through employee onboarding, benefits distribution, HR compliance, contract renewals, termination, and more.
Stay Compliant with Local Laws
By hiring us, you can outsource the complex task of regulatory compliance to the experts. We ensure your company, intellectual property, and support employees are all well-protected.
guide book icon

Everything you need to know to hire globally

Our Ultimate Guide To Global Employment answers all your questions about global EOR, payroll, mobility, benefits, compliance, and more!

Our track record speaks for itself, but don’t take our word for it

24/5 support
120+ currencies
100+ countries
30 years in Human Resources

Agile HRO has accelerated the international expansion of hundreds of companies for over 25 years.

Ready to go global?

Agile HRO are not just HR experts; we are your strategic ally in global growth. From consultation to execution, we are dedicated to ensuring your success on the global stage.

Need more assistance?

Get in touch with Agile

Schedule a demo call with Q&A

We value your privacy. By submitting the above information, you agree to our privacy policy. This site is protected by reCAPTCHA.

Need more assistance?

Get in touch

We are looking forward to hearing from you.

    By submitting the above information, you agree to our privacy policy.
    This site is protected by reCAPTCHA

    Get Started with Agile

    Schedule a 30-minute product demo with Q&A

    We value your privacy. By submitting the above information, you agree to our privacy policy. This site is protected by reCAPTCHA.