Hire in China

Typical time to hire

2-4 weeks for contractor, 4-8 weeks for full-time

Entity requirement

WFOE (Wholly Foreign-Owned Enterprise) or JV. Registration at local AIC (Administration for Industry and Commerce). Process takes 1-3 months.

EOR available

Yes — from $399/employee/month through a Corpshore entity

Contractor of record

Yes — from $39/worker/month

Standard workweek

40 hours (8 hours/day, 5 days). 996 culture (9am-9pm, 6 days) exists but was ruled illegal in 2021.

Maximum weekly hours

44 hours

Minimum annual leave

5-15 days depending on tenure (5 days for 1-10 years; 10 days for 10-20 years; 15 days for 20+ years)

Public holidays

11 per year

Maternity leave

98 days minimum (national). Provincial policies extend to 128-190 days.

Paternity leave

15-30 days depending on province

Notice period

30 days (both parties for standard termination). Immediate termination for cause.

Severance

1 month salary per year of service (N+1 formula for no-fault termination). Capped at 3x local average salary.

Probation

1-6 months depending on contract duration

Overtime rules

150% (weekday), 200% (rest day), 300% (public holiday). Maximum 36 overtime hours per month.

Income tax range

3% to 45% (progressive)

Corporate tax

25% (15% for qualified high-tech enterprises)

Social contributions

Five insurances + housing fund: employer ~30-40% (varies by city), employee ~10-11%.

VAT / GST

13% (standard); 9% (transport, construction); 6% (services)

Tax year

Calendar year

Treaty network

Over 110 tax treaties

Worker classification

Labour Contract Law (2008) creates strong protections. Fixed-term contracts convert to open-ended after 2 renewals or 10 years. Individual service agreements for genuine contractors.

Data protection

Personal Information Protection Law (PIPL, 2021) — China's GDPR equivalent. Cyberspace Administration of China (CAC) enforces. Data localisation requirements for critical information infrastructure operators. Cross-border transfer restrictions.

Right to work

Work permit (Type A/B/C) and residence permit required. Type A for high-end foreign talent. Employer must demonstrate need.

Non-compete

Enforceable under Labour Contract Law Article 23-24. Must be compensated (minimum 30% of salary). Maximum 2 years. Limited to senior management, senior technicians, and those with confidentiality obligations.

Collective bargaining

ACFTU (All-China Federation of Trade Unions) is the sole legal union. Collective contracts negotiated at enterprise level. Strike activity is technically unregulated (neither legal nor illegal).

CNAPS (China National Advanced Payment System) handles interbank transfers. Alipay and WeChat Pay dominate consumer payments (~$40T annually). Cross-border CNY settlement growing but capital controls apply.

• Social insurance contributions (five insurances + housing fund) add 30-40% to salary cost, varying by city
• PIPL (2021) imposes strict data localisation and cross-border transfer requirements
• Labour Contract Law makes termination difficult and expensive; the 'N+1' severance formula is standard
• China's tech sector faces regulatory reshaping (antitrust, data privacy, education); talent market is adjusting