China Country Guide
Employment, taxes, leave and payroll in China, in one place.

Provisions for employee protections and workers' rights are spelled out in the Labour Law of the People's Republic of China and Labour Contract Law of the People's Republic of China. The Labour Law covers workplace discrimination against employees' protected characteristics such as ethnicity and religion.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Rowint can help you offer a complete, competitive, and compliant benefits package to your employees in China.

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.

Learn how employment taxes affect your payroll and your employees' paychecks in China - Beijing specifically.

Contribution rates vary by city and region; the figures above reflect the typical ranges described in the payroll section below.

Paid time off

Employees are not entitled to any paid leave before they have completed their first year on the job. Upon completion of their first year of service, but before they have completed their tenth year of service, the 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 for 20 years of employment or above.

Public holidays

There are 7 public holidays annually but the arrangement of holidays is complicated as adjusting working day(s) may apply. The actual arrangement of holidays in each year is announced and mandated in a holiday circular issued by the State Council before the start of every calendar year.

Sick leave

Employees are entitled to paid sick leave from 3 to 24 months, depending on their tenure and the local laws. In the event of termination, sick leave entitlements include sick leave pay, medical subsidy, and statutory severance pay.

Maternity leave

Female employees are entitled to 98 days' paid leave. For multiple births, the employee is entitled to an additional 15 days of leave for each additional baby. Some local governments provide additional maternity leave ranges from 30 to 90 days to incentivise birth giving. In Shanghai, it is 60 days on top of the national basics.

Paternity/parental leave

Fathers are entitled to paid paternity leave from 7 to 30 days depending on local laws of the region.

Termination process

Employment contracts in China can only be terminated with clear justification and severance payment made to the concerned employee.

Notice period

The standard notice period of employer and employee is 30 days and the notice has to be given in writing, although payment can be made in lieu of notice. During probation period, the employee's notice is 3 days.

Severance pay

Employees are entitled to a month's pay for every year worked, with any tenure up to six months but less than a year counted as a year. Employees with less than six months' tenure and are not in probation period are entitled to half a month's pay if they're let go. Severance is not payable under summary dismissal.

Probation periods

Probation periods can last anywhere from a month to six months, depending on the term of employment. Probation periods are not extendable.

At Rowint, we provide tailored benefits to ensure that all Rowint employees receive comprehensive coverage from top providers. Our plans offer competitive rates designed for larger groups - even if the team is still growing!

Upon onboarding, Rowint will enroll team members in their benefits and provide detailed information about their coverage. Rowint manages all administrative tasks, allowing you to focus on scaling your global team.

To ensure benefit equality, any benefits offered will apply to all team members in the country, providing consistent coverage and support across the team.

Business travel insurance

Rowint's Global Business Travel Insurance program is crafted to address the unique needs of your team, whether they are embarking on short business trips or traveling extensively throughout the year. With five comprehensive plan options—Basic, Standard, Premium, Premium Plus, and Standard Plus—this program ensures that your team members have the right level of coverage to protect their health, safety, and well-being while traveling for business.

Available in over 90 countries, the program provides extensive global coverage at competitive rates, offering peace of mind no matter where their work takes them. This optional benefit is designed to be flexible, allowing you to offer tailored coverage that meets the diverse needs of your workforce. By providing business travel insurance, you are taking proactive steps to safeguard your team from unforeseen events such as medical emergencies, trip disruptions, or loss of business equipment while they are on the road.

Mental health

Offering mental health benefits is not mandatory in this country, but providing the benefit can significantly enhance the emotional well-being and overall productivity of employees. Rowint offers a comprehensive employee mental wellbeing platform in partnership with one of the top-rated employee mental wellbeing providers. This platform is available on desktop and mobile apps and includes 1-to-1 therapy with a curated pool of top-quality therapists in over 35 languages. The advanced matching service finds each employee the right therapist within 48 hours, boasting a 98% success rate. Employees receive a personal wellbeing profile with tailored recommendations and information to track progress. The platform also offers a curated self-guided content library with audio mindfulness and meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers. Additionally, there are 24/7 mental health helplines for immediate support when an employee is struggling. Mental health program benefits may be offered to the employees from among 5 different plans. Offering mental health benefits is optional, but it can greatly enhance employee well-being and productivity. It is essential to be aware that in certain countries, mental health benefits may be categorized as 'Benefits in Kind' (BIK). This categorization means that the monthly premiums paid for the benefit might be counted as part of the employee's taxable income according to the local tax laws. When mental health benefits are offered, they must be provided equally to all employees in the respective country.

Wellness

WELLNESS BENEFIT — Clients can choose to offer the Wellness & Lifestyle Benefit and select from multiple contribution levels, providing their team members a monthly wallet, which they can use with their virtual card at approved stores, online retailers, or any other approved vendors related to Lifestyle and Wellness benefits. The offered services include:

• Physical and mental health support such as gym memberships, fitness classes, therapy, mindfulness apps, and guided meditation.
• Lifestyle services like streaming subscriptions (Spotify, Netflix), groceries, and other services that support work-life balance and personal well-being.
• Personalized recommendations to help employees select benefits most relevant to their needs.
• Platform support for employees needing immediate assistance or guidance on wellness-related concerns.

Available contributions: $25 USD / $50 USD / $100 USD / $150 USD / $200 USD / $250 USD / $300 USD

Hiring contractors in China can be a strategic and cost-effective way for businesses to complete projects without the obligations of hiring full-time employees. Whether you are engaging independent contractors for specialized services or bringing in subcontractors for specific tasks, understanding China's labor laws and regulations is essential.

Staying compliant with Rowint's contractor management

Rowint helps businesses stay compliant when hiring contractors globally with these key features:

• Global compliance support: Ensures adherence to labor laws in 200+ countries with localized contracts and proper documentation.
• Misclassification protection: Includes built-in compliance checks and seamless contractor-to-employee conversion.
• Centralized documentation: Maintains essential records for audits and automates tax filings.
• Legal expertise: Provides guidance on complex local labor laws, simplifying international hiring.

Rowint's streamlined approach minimizes compliance risks and simplifies contractor management for businesses.

Seamless contractor payments with Rowint

Rowint simplifies contractor payments with:

• Automated processing: One-click approvals, bulk payments, recurring invoices, and real-time tracking.
• Global coverage: Payments in 200+ countries, multiple payment methods, and currency flexibility.
• Cost and compliance: Fair price guarantee (pay only for active contractors), built-in compliance with regional regulations, and localized contracts.

Learn more about how Rowint simplifies contractor management in China — get started for free today.