Hiring guide · APAC
How to hire in China
To hire in China you need a local entity or a licensed dispatch arrangement, since a foreign company cannot directly employ a mainland worker. Employer social insurance and housing fund contributions are set city by city and commonly add 26–35% to salary, with monthly payroll.
- Currency
- CNY
- Payroll cycle
- Monthly
- Employer cost
- ~26–35%, city-dependent
- Notice
- 30 days
The talent market in China
China has enormous depth in hardware, manufacturing engineering, AI research and consumer product, concentrated in Beijing, Shanghai, Shenzhen and Hangzhou. Cost and regulatory complexity have pushed some multinationals toward smaller China teams focused on market access and supply chain.
Employment contracts must be in writing and in Chinese within one month of the start date; failing that triggers double-wage liability. After two fixed-term contracts, or ten years of service, the employee is generally entitled to an open-ended contract.
Salary benchmarks in China
Indicative annual gross base salary in CNY for common roles. Treat these as planning ranges — actual offers move with city, seniority, sector and equity mix, and we model a live benchmark before you go to offer.
| Role | Annual gross base |
|---|---|
| Software engineer (mid) | CNY 300,000 – 500,000 |
| Senior software engineer | CNY 500,000 – 800,000 |
| Account executive (SaaS) | CNY 300,000 – 600,000 incl. variable |
| Customer support specialist | CNY 120,000 – 200,000 |
Employment rules and payroll in China
The statutory framework any offer has to sit inside — hours, leave, notice and the contributions that turn salary into fully loaded cost.
Working week
40 hours standard; overtime capped monthly and paid at premium rates
Probation
1–6 months depending on contract length, at not less than 80% of pay
Notice period
30 days' written notice or one month's pay in lieu
Paid leave
5 days after one year, 10 after ten years, 15 after twenty
Public holidays
11 statutory days, with mandated make-up working days
Payroll cycle
Monthly, often with a 13th month convention
Employer contributions
Pension, medical, unemployment, maternity and work injury insurance plus the housing fund, all set locally
Contractor, EOR employee or your own entity?
Three ways to engage someone in China. The right one depends on how permanent the role is, how much direction you give, and how much local risk you want to carry.
Contractor
Fastest to start and simplest to end. Suitable for genuinely independent, project-scoped work where the person controls how and when they deliver, invoices you, and works for other clients. No statutory benefits, no notice period, no severance.
Employee via EOR
The right structure for a full-time role with fixed hours, managerial direction and exclusivity. A licensed in-country partner is the legal employer, so the person gets a compliant contract, statutory benefits and local payroll — without you opening an entity.
Your own entity
Worth it once headcount, permanence and local revenue justify the incorporation, tax registration, statutory filings and local directorship. Most companies reach that point somewhere between 15 and 30 employees in a single country.
Misclassification risk in China
Chinese law recognises a labour relationship based on the facts, not the contract. Engaging a de facto employee as a service provider exposes the client to double-wage penalties for the missing written contract, back social insurance and housing fund, and statutory severance of one month per year of service.
Work permits and right to work
Foreign nationals need a work permit notification, a Z visa and then a residence permit, graded under a points-based classification. The sponsoring entity must be locally registered, and the process typically takes two to three months end to end.
Hire in China without an entity
TalentStores orchestrates Employer of Record employment in China through licensed in-country partners, with cost modelled before you extend an offer.
Explore Employer of Record- Fully loaded cost modelled before offer
- Licensed partner matched, not assumed
- One contract, one consolidated bill
Hiring in China: frequently asked questions
Can a foreign company employ someone directly in China?
No. Mainland employment requires a locally registered entity, so companies without one use a licensed employment or dispatch arrangement through a local partner, which becomes the legal employer while you direct the day-to-day work.
Why does employer cost vary so much across Chinese cities?
Social insurance and housing fund rates and contribution bases are set at municipal level. Shanghai, Beijing and Shenzhen differ materially in both the percentage and the capped base, so cost must be modelled for the specific city, not nationally.
What happens if the written contract is late?
An employer that fails to sign a written Chinese-language contract within one month of the start date owes double wages for each month without one, up to eleven months, and after twelve months an open-ended contract is deemed to exist.
Related
Hiring guides by country
Compare salaries, employer cost and employment rules across every market we cover.
ExploreGlobal payroll
One consolidated payroll view across every country, partner and currency.
ExploreContractor payments
Onboard, classify and pay independent contractors without the misclassification exposure.
Explore
Get the China Hiring Cost Guide
A country brief covering fully loaded employment cost in CNY, salary benchmarks by role, statutory contributions, leave and notice rules, and a sample offer breakdown for China.