Employing in China
Growing your workforce in China doesn’t need to be complex. Speak with our team to see how TopSource EOR makes it easy to hire in new countries, without setting up entities or getting lost in local regulations.
Global Employee Cost Calculator
Estimate the cost of your new hire with our calculator. Simply enter their location and salary information in to this handy tool to see what will be spent in employment costs each month.
Employment Cost Calculator
*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expertChina
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More than an Employer of Record.
Employer of Record services are only one way that we help you accelerate your global growth goals. From talent advisory to entity management, we give you the tools you need to research, enter and expand into your key markets.
Market Selection Advisory
Compare available talent, compensation, additional costs and regulations across different countries
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Salary Benchmarking
Identify and prioritize markets for growth based on talent, cost & regulations
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Global Skills Analysis
Map skill availability by region to align talent strategies with business goals..
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Talent Acquisition
Find, hire & onboard the highly skilled team members you need in each locality.
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Talent Strategy Optimization
Optimize your talent strategy to enable your organization to achieve it’s global ambitions.
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Frequently asked questions
Yes. We manage the mandatory social insurance and housing fund contributions often called the ‘five insurances and one fund’ (pension, medical, unemployment, work injury, maternity, plus the housing provident fund), along with monthly Individual Income Tax (IIT) withholding. Contribution rates and caps are set at the city level, not nationally, so we calculate them based on where the employee is actually based, which is essential for accuracy in China.
Statutory social insurance and housing fund contributions are the baseline, but competitive employers in China typically add supplementary commercial health insurance, meal or transport subsidies, and an annual bonus tied to Chinese New Year, since a year-end bonus is a strong cultural expectation even where it isn’t legally mandated. Clear, written performance and promotion criteria also matter more in China than in many markets, given the emphasis candidates place on career progression.
China’s Labor Contract Law requires 30 days’ written notice (or payment in lieu) for termination without cause during a fixed-term contract, and severance is calculated using the ‘N’ or ‘N+1’ formula based on one month’s salary per year of service. A significant rule to know: after an employee has completed two consecutive fixed-term contracts, the employer must offer an open-ended contract if the employee wants to renew, which changes long-term workforce planning in China.
Onboarding through an EOR typically takes one to two weeks, largely governed by the mandatory city-level social insurance registration process, versus the months usually needed to establish a Wholly Foreign-Owned Enterprise (WFOE) and obtain the business licenses required to legally employ staff in China. For companies not yet ready to commit to a WFOE, an EOR is often the only compliant way to employ staff directly in China.
China’s employment and tax rules are administered locally, and setting up a WFOE involves capital requirements, business licensing, and registration with multiple authorities before you can legally run payroll. An EOR that already holds registered entity status in China lets you hire compliant employees immediately, correctly applying city-specific social insurance rates, without taking on the cost and lead time of incorporation.
Hire Anywhere with Our EOR Services
We help you legally employ and pay talent across 180+ countries—so you can scale faster.