EOR Service in China

Hire, Onboard and Pay Employees in China Quickly and Efficiently

Hiring in China at a glance

CURRENCY
Yuan
working hours
8 hours per day/40 hours per week
public/bank holidays
6 days
capital
Beijing
language
Mandarin Chinese
date format
YYYY:MM:DD
remote workers
1.2M
tax year
January 1st to December 31st
minimum hourly salary
No minimum wage
CURRENCY
Yuan
working hours
8 hours per day/40 hours per week
public/bank holidays
6 days
capital
Beijing
language
Mandarin Chinese
date format
YYYY:MM:DD
tax year
January 1st to December 31st
payroll frequency
Monthly
GDP
$ 17734.06 Billion (est. 2021)

Employer of Record in China

China boasts a colossal talent pool. However, China’s labor laws, employment regulations, and cultural nuances can pose significant hurdles for foreign employers. By partnering with an EOR in China, employers gain access to local expertise and infrastructure, letting them seamlessly tap into the vast talent pool. An EOR in China serves as an intermediary, assuming legal responsibility for employing workers on behalf of the foreign company while ensuring compliance with local labor laws and regulations.

Why use China EOR?

Unlocking the potential of the Chinese labor market requires a deep understanding of its labor laws. China has complex employment regulations, making it daunting for foreign employers. 


China’s labor laws are heavily influenced by central laws and collective bargaining agreements. In addition to these, laws around sick leaves, benefits, wages vary with each province. For example, hourly minimum wages in Shanghai is set at RMB 24, while employees in Beijing must receive at least  RMB 26.4 on an hourly basis. This is different to laws in the USA where minimum wages and other employment laws are set at the national and state level. Unlike the USA, labor unions are extremely empowered in China, and laws can keep changing with the demands of the union. 


A China EOR/PEO provides expertise in navigating Chinese labor laws, ensuring legal compliance for your business. They handle employee contracts, payroll processing, tax obligations, and administrative tasks according to Chinese regulations. By partnering with a China EOR/PEO, you gain access to local knowledge, networks, and cultural understanding, facilitating business establishment and growth in China.

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EOR Costs in China

EORs in China base their pricing on two common pricing models: fixed pricing and percentage-based pricing.

In a fixed pricing model, the EOR charges a predetermined fixed fee for each employee or service provided. Companies with long-term goals to grow in China can partner with EORs following fixed pricing. Such a model allows employers to plan their hiring budgets when hiring talent in China. This fee typically covers administrative costs, compliance management, and employer contributions.

Alternatively, the percentage-based pricing allows EORs in China to charge a percentage of the employee's salary - 3% to 10% - as their fee. The percentage depends on various factors- the number of employees, specific services required, and the duration of the engagement. Such a pricing model suits companies with fluctuating or project-based workforce needs. However, this pricing model becomes unsuitable for hiring high-salaried employees. As opposed to a fixed pricing model where the costs are stable regardless of salary, the percentage-based pricing becomes heavy on the employer’s hiring budgets as they hire high-income employees. 

Discuss with your EOR partner prior about cost arrangements before expanding in China.


Key Metrics For Foreign Indicators

With a massive market, dynamic economy, skilled workforce, innovation hubs, and supportive government policies, working in China is a gateway to success. Join the vibrant tech ecosystem, tap into a diverse consumer base, and experience a rich cultural heritage.

Factors Global Ranking Interpretation
Rule of law

Labour-employer cooperation

Reading Maths, and Science

University Ranking

Labour productivity per employee

Ease of finding skilled employees

Workforce with tertiary education

Digital Skills
63

31

1

3

76

12

n/a

n/a
Indicates effectiveness of law enforcement

Indicates positive labor-employee relationships

Indicates average scores in OECD's survey of 15-year old students

Indicates average QS rankings

Indicates total output by the total labour input used to produce that output

Indicates findability of skilled talent

Indicates % of workforce with PG degrees

Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots' Recrew platform, you can discover amazing talent in the China and grow your team effectively.

Why work in China?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in China

Employers in China must have a local legal organization and utilize local resources to handle compliance, payroll, tax, and benefits management. The complexity of employment regulations in China makes compliance with employment laws demanding.

With Gloroots' global Employer of Record (EoR) service, you can let Gloroots handle the heavy lifting of payroll, tax, benefits, and compliance, allowing you to concentrate on what matters most: your employees and company growth.

Risks of misclassification

Navigating the complexities of employee classification is crucial when operating in China. Misclassifying workers can lead to legal liabilities and financial penalties. To safeguard your business, partnering with a reputable PEO/EOR in China is a wise choice.

By engaging a PEO/EOR, you ensure compliance with Chinese labor laws, accurate employee classification, and seamless payroll processing. These experts handle comprehensive benefits and ensure that your workforce receives the legal protections and entitlements they deserve. Focus on your core business operations while entrusting employment-related obligations to trusted professionals in China.

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Avoid hefty penalties with Gloroots.

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Employing in China

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

INCOME TAX

Income Range (CNY) Income Tax Rate
Up to 36,000 3%
36,001 - 144,000 10%
144,001 - 300,000 20%
300,001 - 420,000 25%
420,001 - 660,000 30%
660,001 - 960,000 35%
Over 960,000 45%

Note: CNY stands for "Chinese Yuan," which is the official currency of China.

Other Taxes and Social Security contribution:

Tax Employer Contribution Employee Contribution
Corporate Tax 25% -
VAT 13% (standard rate) -
Social Security Location-dependent Location-dependent
Pension 16% 8%
Healthcare 10% 2%
Occupational 0.16-1.52% N/A
Accident Insurance
- -
Unemployment 0.5% 0.5%
Insurance - -
Housing Fund 7% 7%

Please note that the contribution rates and components may vary depending on the specific location in China. The example provided here is based on the rates in Shanghai.

Separation

Termination Process:

In China, terminating employment contracts requires valid reasons and the provision of severance payments to the affected employees as per legal requirements.

Notice Period:

Employers are generally required to give a one-month notice.

Severance Pay:

Employees are eligible to receive a month's salary for each year of service, where any period less than six months is considered as a year. In cases of termination with less than six months' tenure, employees are entitled to half a month's salary.

Probation Periods:

The duration of probation periods may vary depending on the specific terms of the employment agreement, ranging from one month to six months.

Start Hiring in China today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimise all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. They do this by helping you with generate employment contracts, make on-time payments, offer compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

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Experience Seamless Hiring in China?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in China.

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