Country Payroll Guide China

We deliver secure, compliant, accurate and touchless global payroll for China.

Get in touch
Beijing-China

Key Facts

Capital
Beijing
Date format
yy/mm/dd
Currency
Renminbi (Yuan) (CNY)
VAT
the lower rate is 6%
the middle rate is 9%
the high rate is 13%

Contributions

Employers

Medical Insurance
Medical Insurance - 10% to 12%
Occupational Injury Insurance
Occupational Injury Insurance - 19% to 20%
Unemployment Insurance
Unemployment Insurance - 1% to 1.5%
Maternity Insurance
Maternity Insurance - 0.5%
Housing Funds
Housing Funds - 5% to 12%
Total Employment Cost
Total Employment Cost - 35% to 42%

Employees

Medical Insurance
Medical Insurance - 2%
Housing Funds
Housing Funds - 5% to 12%
Pension Insurance
Pension Insurance - 8%
Unemployment Insurance
Unemployment Insurance - 0.5%
Total Employee Cost
Total Employee Cost - 15% to 23%

Minimum Wage

Minimum Wage

There is no national minimum wage rate in China. Each of China’s 22 provinces, five autonomous regions, and four direct-controlled municipalities sets minimum wage rates applicable for its territory.

Payroll

Payroll Cycle
Monthly
13th Salary

Many companies in China have instituted a 13th month salary payment paid during the month of the Chinese New Year or Spring Holiday. This bonus is not a government mandate.

Income Tax

Employee Income Tax (1)
Up to 1,500 yuan - 3%
Employee Income Tax (2)
1,500 - 4,500 yuan - 10%
Employee Income Tax (3)
4,500 - 9,000 yuan - 20 %
Employee Income Tax (4)
9,000 - 35,000 yuan - 25 %
Employee Income Tax (5)
35,000 - 55,000 yuan - 30 %
Employee Income Tax (6)
55,000 - 80,000 yuan - 35%
Employee Income Tax (7)
Over 80,000 yuan - 45%

Working Hours

General Working Hours

40 hours per week.

Overtime

Up to a maximum of 36 hours overtime a month; on weekdays is 150% of base pay, on a weekend 200% of base pay, and a 300 % for overtime worked on a holiday.

Leave

Paid Time Off

Employees who have worked continuously for more than one year are entitled to paid annual leave, the amount depending on their total work years.

– 1 – 10 years: 5 days
– 10 -20 years: 10 days
– 20 years or more: 15 days

Public Holidays

6 Public holidays, which vary by date from year-to-year.

Sick Days

A non-work-related illness or injury the length of the sick leave entitlement depends on total years of work experience and tenure with the current employer:

– Fewer than 5 years: 3 months over a 6-month period
– 5 or more: 6 months over a 12-month period
– 5 to 9: 9 months over a 15-month period
– 10 to 14: 12 months over an 18-month period
– 15 to 19: 18 months over a 24-month period
– 20 or more: 24 months over a 30-month period

Maternity Leave

At least 98 days; additional 15 days if a woman undergoes a difficult labor and delivery; multiple births – additional 15-day period of maternity leave for each additional child.

Paternity Leave

In cases of delayed birth, paternity leave: 3 – 10 days depending on locality.

Parental Leave

1 hour a day for nursing mothers for children under 12 months.

Other Leave

Home leave: 30 days a year to visit a spouse; Unmarried workers get 20 days a year—or 45 days every two years—to visit parents, married workers get 20 days every four years to visit parents; (Home leave is only required for employees who work for the government, state-owned enterprises and social institutes).

Termination

Termination Process

The law requires 30 days notice or payment of one month’s wages in lieu of notice as well as severance pay to employees who are terminated for cause.

Notice Period

30 days notice.

Severance Pay

One month’s salary per full year of work, plus a half month’s salary for a partial year of work of less than six months or a full month’s salary for a partial year of work of six months or more.

Probation Period

If the term of a labor contract is more than three months but less than one year, the probation period may not exceed one month; if the term is more than one year but less than three years, the probation period may not exceed two months; and if the term is fixed for three or more years or is open-ended, the probation period may not exceed six months.

Visa

Employment Visa

The M visa for foreigners coming to China for business purposes. Work visas, covered by both Z and R visas, are issued to a foreigners for the purpose of commercial performances or academic exchanges.