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Hiring in China through an EOR (2026)

Here's what you need to know before you hire in China: what it really costs an employer, the employment laws that shape the contract, and how an Employer of Record lets you hire compliantly without opening a local entity. Every figure below is sourced and dated.

24.6%Employer cost on top
CN¥1,930Minimum wage / mo
5 daysPaid annual leave
Days, not monthsTime to hire via EOR
Robbin Schuchmann
Written by:
Co-Founder at EOR Overview
Last updated: July 22, 2026

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China at a glance

The statutory facts that drive a hire in China. Each row shows where the figure comes from and how current it is, so you can trust the number and check it yourself.

Pay & working time

Minimum wageper monthCN¥1,930DatedILOSTAT · 2024
Statutory work week40 hours/weekCurrentStatutory working time (national labour law) · 2024
Payroll cyclemonthlyCurrentResearch desk · 2026
13th-month salarynoneCurrentResearch desk · 2026

Employer cost & tax

Employer social securityof gross salary24.6%DatedISSA Country Profiles · 2024
Employee social securitywithheld from pay11%DatedISSA Country Profiles · 2024
Corporate tax rate25%AgingOECD · 2025

Termination

Notice period4.3 weeksCurrentILO EPLex · 2026
Severance pay23.1 weeksCurrentILO EPLex · 2026

Leave & time off

Paid annual leave5 daysCurrentResearch desk · 2026
Public holidays13 daysCurrentResearch desk · 2026
Maternity leave14 weeksCurrentResearch desk · 2026
Paternity leave0 weeksCurrentResearch desk · 2026

Labour market

Retirement age58DatedOECD Pensions at a Glance · 2024
Unemployment rate4.6%AgingWorld Bank Open Data · 2025
GDP per capita$13,862AgingWorld Bank Open Data · 2025
Union density44.2%DatedILOSTAT · 2017
Collective bargaining coverage45%DatedILOSTAT · 2017

Each row shows the year of the most recent citable source for that figure. Where a year looks old, that is the newest comprehensive source available, and we keep the sourced figure rather than substitute an unsourced newer one. Statutes may have changed since. Rows marked Research desk were filled by our research desk from primary sources where no institutional dataset publishes the figure; each carries the date it was checked and is re-verified on its refresh cycle.

What it costs to hire in China

Salary is only part of the bill. On top of gross pay you owe employer social security and statutory contributions. Here's what an example salary of $14,000 a year actually costs you as the employer.

Gross annual salary$14,000
Employer contributions24.6% of gross+ $3,445
Total employment cost$17,445
Your EOR handles the filings

Illustrative, based on the employer social-security rate above. An EOR adds its own service fee on top of this total and runs the income-tax withholding and statutory filings, which are withheld from the employee's pay, not paid by you.

Income tax in China

Income taxPaid by employee · progressive
$0 – $36,0003%
$36,000 – $144,00010%
$144,000 – $300,00020%
$300,000 – $420,00025%
$420,000 – $660,00030%
$660,000 – $960,00035%
$960,000 +45%
Employer contributions
Social security24.6%
Employee contributions
Social security11%

Employment-law essentials

The rules an EOR enforces in your contracts, and the ones most likely to trip you up if you tried to hire in China on your own.

Working time
Statutory work week40 hours/week
Pay & 13th salary
Minimum wageCN¥1,930
Payroll cyclemonthly
13th-month salarynone
Leave
Paid annual leave5 days
Public holidays13 days
Maternity leave14 weeks
Paternity leave0 weeks
Termination
Notice period4.3 weeks
Severance pay23.1 weeks

Statutory minimums shown. Collective agreements or contracts can be more generous; an EOR applies whichever is correct for the role.

EOR vs. opening your own entity in China

Use an EOR when…
You're hiring one to a handful of people in China.
You want someone working in weeks, not months.
You'd rather not own local payroll, tax and compliance.
You're testing the market before committing.
Open your own entity when…
You're scaling to a large local team long-term.
Per-employee EOR fees outweigh the cost of an entity.
You need full control of local employment and IP.

Choosing an EOR for China

Providers with strong China coverage onboard faster and carry less risk. A shortlist to start from:

Compare all EOR providers in China

See our ranked best EOR providers in China

Common questions about hiring in China

Common questions about hiring in China through an EOR.

Do I need a legal entity to hire someone in China? +
No. An Employer of Record (EOR) already has a legal entity in China and employs the person on your behalf, so you can hire compliantly without opening your own entity. You manage the day-to-day work; the EOR handles the local contract, payroll, taxes and statutory benefits.
How much does it cost to employ someone in China? +
On top of gross salary, employers in China contribute roughly 24.6% in social security and statutory costs. An EOR adds its own service fee on top of that total employment cost.
What is the minimum wage in China? +
The statutory minimum wage in China is CN¥1,930. Pay below this is not permitted, and an EOR will hold contracts to at least this floor.
How hard is it to terminate an employee in China? +
Ending employment in China generally requires a notice period of around 4.3 weeks and severance of about 23.1 weeks, subject to the reason for termination and the employee's tenure. An EOR runs the offboarding in line with local law to limit your risk.
How much paid leave do employees get in China? +
Employees in China are entitled to 5 days of paid annual leave, in addition to public holidays. Statutory leave is one of the entitlements your EOR administers automatically.
About the author
Robbin Schuchmann
Co-Founder at EOR Overview
Robbin is the co-founder of EOR Overview, an independent research site for Employer of Record services. He has been in the international hiring space for over a decade.
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