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When it comes to employing and managing employees in China, there are specific procedures and regulations that must be followed.

Here's what you need to know

    • Type of Contract:
      The most common types of employment contracts in China are open-ended, fixed-term, and part-time contracts.
    • Contract Requirements:
      Employment contracts in China must be in writing and include specific terms, such as job description, salary, working hours, and duration of the contract.
  • Probationary Period:
    Employers are allowed to include a probationary period in employment contracts. The maximum length of the probationary period is 6 months for non-managerial employees and 12 months for managerial employees.
    • Minimum Wage:
      The minimum wage in China varies by region and is set by local governments. Employers must pay their employees at least the minimum wage for the region where they work.
    • Social Insurance:
      Employers are required to contribute to social insurance for their employees, including pension insurance, medical insurance, unemployment insurance, and work injury insurance. The contribution rates vary by region and are calculated as a percentage of the employee's salary.
  • Income Tax:
    Employees in China are subject to income tax. The amount of tax depends on the employee's salary and other factors.
    • Work Permit:
      Foreign workers in China may require a work permit to be employed legally. These permits are issued by the Chinese government and have specific requirements and eligibility criteria.
    • Leave Entitlements:
      Employees in China are entitled to various types of leave, such as annual leave, sick leave, and maternity leave. Employers must comply with the specific requirements and regulations for each type of leave.
  • Termination of Employment:
    Employment contracts in China may be terminated by either the employer or the employee. The process for terminating employment must follow specific legal requirements.
Collaborating with a local expert in employment and payroll in China can streamline the process and ensure that you’re meeting all the legal requirements while providing a supportive work environment for your employees.

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