Overview

Capital
Beijing
Currency
Yuan
Date Format
yyyy-mm-dd

calendar icon Public holidays calendar

Taxes

Employer
16.00% - Pension
0.20% - 1.90% - Work related injury
0.80% - Maternity
10.00% - Medical
0.80% - Unemployment
Employee
8.00% - Pension
2.00% - Medical

Minimum Wage

General

Minimum wage varies depending on the region.  The highest minimum wage is in Shanghai at 2,480 CNY per month. This is roughly the double of the minimum salary paid in such provinces as Hunan, Hubei, and Liaoning. The minimum salary in such fourth-tier cities as Loudi is only 1,220 CNY.  

Working Hours

General

The standard workweek in China is 40 hours. Employees work 8 hours per day and 5 days per week.

Overtime

Overtime is paid ate a rate of 150% on regular workdays, 200% on rest days, and 300% on offical holidays.

VAT

General

Standard rate VAT is 16%

Mandatory Benefits

Pension Fund

Employer contributes 20% of the employee’s wages. Employee contributes 8% of regular wages. The salary ceiling for contributions is CNY 19,389.

Social Security

Social security is comprised of pension, medical insurance, unemployment, maternity, workplace injury, housing fund, and disability fund.  

Employer contributes 40% of workers wages (capped at 24,633 CNY), and employees contribute approximately 10.5% of their salary.

Disabled fund is paid once a year. Companies whose workforce does not exceed 1.5% of employees with disabilities must pay approximately 1.5% of the social insurance tax base to the disability fund.  

 

 

Payroll

Payroll Cycle

Paydays are between the 10th to the 20th of the following month. 

Overtime Payment

Employees are limited to up to 3 hours of overtime per day or 36 hours per month.  

During normal workdays, employees receive 150% of their wages. For overtime hours worked on rest days, employees receive 200% of their regular wages or an additional day off . Employees working overtime during statutory holidays receive 300% of their regular wages.  

Termination

Termination Process

In China, it is difficult to terminate an employment contract unless by mutual agreement or if an employment contract expires. 

Advance Notice

Advance notice is 30 days for both the employee and employer.  

Severance Pay

In most cases, dismissed employees are entitled to severance payment.

Severance pay amount depends on the years of service of the employee in the company. The standard is one month of wages for one full year of service and is capped at 12 months of severance pay.