Asia
How to hire and pay employees in Turkey
Find out how to hire and pay employees in Turkey. Help your business expand into new markets with our Global Payroll & Employer of Record services.
How to hire and pay employees in China
Slasify
Jun 21, 2025
| Key Takeaways |
|---|
| 1. Hiring requires navigating complex regional variations in minimum wage, social contributions, and leave policies across China's provinces and municipalities. |
| 2. Progressive income tax ranges from 3% to 45% with monthly taxable income over CNY 80,000 subject to the highest rate. |
| 3. Employer social contributions total 23.9%-35.2% including endowment insurance (16%), medical insurance (6.5%), and provident fund (5-12%) in Xiamen City. |
| 4. Severance pay is mandatory for employer-initiated termination at one month's salary per year of service, capped at 12 months' average salary. |
| 5. Strict probationary period rules apply with maximum 6 months duration and wages at least 80% of contracted rate, not below local minimum wage. |
Discover the global hiring and employment landscape in China – a vast market potential, both domestically and globally, makes it a prime location for businesses seeking to leverage from its wide range of market advantages.
Personal Income Tax
| Annual Taxable Income (CNY) | Monthly Taxable Income (CNY) | Progressive Tax Rate (%) |
|---|---|---|
| Up to 36,000 | Up to 3,000 | 3 |
| 36,001–144,000 | 3,001–12,000 | 10 |
| 144,001–300,000 | 12,001–25,000 | 20 |
| 300,001–420,000 | 25,001–35,000 | 25 |
| 420,001–660,000 | 35,001–55,000 | 30 |
| 660,001–960,000 | 55,001–80,000 | 35 |
| Over 960,000 | Over 80,000 | 45 |
Local Taxes
There are no local taxes on employment income in China.
Statutory Contributions
Social contributions in China generally include the following components: Endowment Insurance (养老保险), Medical Insurance (医疗保险), Unemployment Insurance (失业保险), Work-Related Injury Insurance (工伤保险), Childbirth Insurance (生育保险) and Provident Fund (住房公积金).
Furthermore, some provinces may also require additional supplementary contributions to the Disability Insurance Fund (残保金) and Serious Illness Medical Insurance (大病).
It is important to understand that contribution rates and assessible income for contributions vary across China's provinces. For example, the assessible income for contributions and contribution rates in Xiamen City is as follows:
| Lower Limit (CNY) | Upper Limit (CNY) | |
|---|---|---|
| Endowment Insurance (养老保险) | 3,300 | 22,164 |
| Medical Insurance (医疗保险) | 4,433 | 22,164 |
| Unemployment Insurance (失业保险) | 3,300 | 22,164 |
| Work-Related Injury Insurance (工伤保险) | 4,433 | 22,164 |
| Childbirth Insurance (生育保险) | 4,433 | 22,164 |
| Provident Fund (住房公积金) | 2,030 | 30,770 |
Employer Contributions (Xiamen City)
| Contribution Rate | |
|---|---|
| Endowment Insurance (养老保险) | 16% |
| Medical Insurance (医疗保险) | 6.5% |
| Unemployment Insurance (失业保险) | 0.5% |
| Work-Related Injury Insurance (工伤保险) | 0.2%–1.5% |
| Childbirth Insurance (生育保险) | 0.7% |
| Provident Fund (住房公积金) | 5%–12% |
Employee Contributions (Xiamen City)
| Contribution Rate | |
|---|---|
| Endowment Insurance (养老保险) | 8% |
| Medical Insurance (医疗保险) | 2% |
| Unemployment Insurance (失业保险) | 0.5% |
| Provident Fund (住房公积金) | 5%–12% |
Payment of Wages
Wages should be paid to the employees themselves monthly.
Minimum Wage
Minimum wage in China varies by province and the cities within. In Beijing, the minimum wage is set at CNY 2,420 per month.
Statutory Bonus
There is no statutory bonus in China.
Termination
An employment contract may be cancelled by agreement reached between the parties through consultation. However, each party may also unilaterally cancel the contract if they have a legitimate reason and notify the other party in writing of their intent.
| Legitimate reason for dismissal | Legitimate reason for termination | ||
|---|---|---|---|
| With notice period | Without notice period | With notice period | Without notice period |
| Employee unable to take up their original work or any work specially arranged by the employer after the completion of their medical treatment period | Employee being proven to be unqualified for recruitment during the probation period | Employer failing to provide occupational protection or working conditions as agreed upon in the labor contract | Employer gives instructions in violation of the rules and regulations or gives peremptory orders to perform hazardous operations that endanger the employee's personal safety |
| Employee has seriously violated labor discipline or the rules and regulations of the employing unit | Employer failing to pay labor remuneration on time and in full | ||
| Employee unqualified for their work and remains unqualified even after receiving training or after re-adjusting the work post | Employee has caused great losses to the employer through gross neglect of duty or malpractice for personal gains | Employer failing to pay the social insurance premiums for the worker in accordance with law | |
| Employee has established an employment relationship with another employer, which seriously affects the accomplishment of their original task, or refusing to rectify after the matter has been brought up | Employer having rules and regulations that are at variance with laws or regulations, thereby impairing the worker's rights and interests | Employer forces the employee to work by means of violence, intimidation or illegal restriction of personal freedom | |
| When the objective conditions taken as the basis for the conclusion of the contract have changed so greatly that the original contract cannot be carried out, and no agreement on contract modification can be reached through consultation | Employee has invalidated the employment contract as a result of their non-compliance with the provisions of Article 26 of the Labor Contract Law | Employer invalidating the contract as a result of their non-compliance with the provisions of Article 26 of the Labor Contract Law | |
| Employee has been investigated for criminal responsibility in accordance with the law | Other circumstances in which an employee may have the labor contract revoked as provided for by laws or administrative regulations | ||
Notice Period
Both the employer and employee who decides to unilaterally cancel their employment contract shall generally observe a 30-day notice period unless the reason for their termination warrants summary termination.
Severance Pay
Severance pay equivalent to a month's salary for each year of service must be paid to employees who are dismissed or forced to resign due to reasons attributed to the employer. However, they are not entitled to any payments if they are dismissed for a reason that sufficiently justifies summary dismissal.
Employees who have worked for 6 months or more, but less than a year shall have their service term be calculated as a year for severance calculation purposes.
| Length of service | Severance pay |
|---|---|
| Less than 6 months | 0.5 month's salary |
| 6 months–1 year | 1 month's salary |
The wages used for the calculation of an employee's severance pay entitlement is capped at 3 times the region's average monthly salary. Moreover, those whose average monthly salary exceeds this threshold shall have their severance limited to a maximum of 12 months' average salary.
Probationary Period
A probationary period may be specified in the employment contract, provided that its duration does not exceed 6 months. It is important to note that an employee and employer can only agree to a single probationary period, and that no probationary period may be included if it is set to expire upon the completion of a given job or in a contract of less than 3 months.
The wage of a probationary employee shall not be less than 80% of the wage agreed upon in the contract and it shall not fall below the applicable minimum wage.
Employers may cancel the employment contract of employees who are proven to not be up to the standards for recruitment during the probationary period. In any case, employers must have legitimate reasons for dismissing an employee on probation, which must then be explained to the dismissed employee.
Work Time Rules
Standard Working Hours
Normal working hours are generally subject to a maximum of 8 hours per day or 40 hours per week.
Break Period
Female employees are entitled to an hour of breastfeeding break during their first year post-birth of their child. This break shall be extended by an hour for each additional child in the event of multiple births.
There are no other regulations surrounding break period in the Labor Law or the Labor Contract Law.
Overtime
Employers may extend working hours as necessitated by its production or business operation after consultation with the trade union and employees, provided that the extended working hour does not exceed an hour per day unless otherwise permitted.
That being said, longer overtime may be allowed if it is needed for special reasons. In any case, the extended hours shall not exceed 3 hours per day and total working hours extension shall not exceed 36 hours in a month.
Employees required to work extended hours shall be paid 150% of their normal wages.
Weekly Rest Days
Employers shall guarantee that their employees have at least a day off per week, with those who are required to work on their rest days being paid at 200% of their normal wages if no compensatory off days can be arranged.
Holiday and Leave Entitlements
Public Holidays
Employers shall allow days off during certain festivals and public holidays for their employees, with those who are required to work on these days being paid at 300% of their normal wages. There are 28 days of public holidays in China for 2025.
| Holiday | Date |
|---|---|
| New Year's Holiday | January 1 |
| Spring Festival | January 28–February 4 |
| Qingming Festival | April 4–6 |
| International Labor Day | May 1–5 |
| Dragon Boat Festival | May 31–June 2 |
| National Day and Mid-Autumn Festival | October 1–8 |
Annual Leave
Employees shall be entitled to the following paid annual leave, calculated based on their cumulative work years with all previous and current employers:
| Total work experience | Annual leave |
|---|---|
| Less than a year | - |
| 1–10 years | 5 working days |
| 10–20 years | 10 working days |
| Over 20 years | 15 working days |
The annual leave entitlement of a newly hired employee shall be prorated according to the number of calendar days left in the calendar year that they join the company.
Annual leave may be taken all at once or for several times within the year, and shall generally not be carried over to the following year unless there is a special production or working reason.
Employers who fail to grant their employees their annual leave shall compensate their employees an amount equivalent to 300% of their daily wage for each unused leave day.
Sick Leave
Employers usually have a considerable degree of freedom to set the number of paid sick leave their employees may be entitled to. The one universal rule regarding sick leave payment is that the sick leave wage shall not be lower than 80% of the local minimum wage.
However, there is a more strictly regulated "medical treatment" period in which the employee cannot be dismissed for their absence due to sickness or non-work-related injury, and the employer must continue paying a portion of their wage.
| Total work experience | Length of service with the employer | Medical treatment period |
|---|---|---|
| Less than 10 years | Less than 5 years | 3 months |
| More than 5 years | 6 months | |
| More than 10 years | Less than 5 years | 6 months |
| More than 5 years, but less than 10 years | 9 months | |
| More than 10 years, but less than 15 years | 12 months | |
| More than 15 years, but less than 20 years | 18 months | |
| More than 20 years | 24 months |
The continued wage payments an employee is entitled to shall be determined by the duration of their absence and their length of service, as follows:
| Duration of absence | Length of service | Amount |
|---|---|---|
| Less than 6 months | Less than 2 years | 60% of salary |
| More than 2 years, but less than 4 years | 70% of salary | |
| More than 4 years, but less than 6 years | 80% of salary | |
| More than 6 years, but less than 8 years | 90% of salary | |
| 8 years or more | 100% of salary | |
| More than 6 months | Less than a year | 40% of salary |
| More than a year, but less than 3 years | 50% of salary | |
| 3 years or more | 60% of salary |
Maternity Leave
Female employees are entitled to at least 98 days of paid maternity leave for childbirth, with the employee being able to take 15 days as pre-natal leave.
In the event of an abortion or miscarriage, the employee shall be entitled to the following maternity leave:
| Circumstances | Maternity leave |
|---|---|
| Abortion after less than 4 months of pregnancy | 15 days |
| Miscarriage or abortion after 4 months of pregnancy | 42 days |
Note: Each province may have implemented separate regulations granting extra maternity leave. For example, the Fujian regulation provides 60–82 days of extra maternity leave.
Paternity Leave
There is no unified paternity leave legislation, with paternity leave policies being managed by the municipal or provincial family planning regulations. This means that each province may have their own regulations surrounding paternity leave.
Parental Leave
There is no unified parental leave legislation, with parental leave policies being managed by the municipal or provincial family planning regulations. This means that each province may have their own regulations surrounding parental leave.
Other Leave
| Leave | Explanation |
|---|---|
| Funeral Leave | Employees shall be paid at their regular rate for funeral leaves. There is no unified funeral leave legislations, though employees should generally be entitled to at least 3 days' leave. |
| Leave for Pre-Natal Examination | Pregnant female employees shall be entitled to take paid time off during working hours in order to get pre-natal examinations beginning in the 12th week of pregnancy. |
| Marriage Leave |
Employees shall be paid at their regular rate for marriage leave. There is no unified marriage leave legislation, though employees should generally be entitled to at least 3 days' leave. Note: Each locality may also offer varying durations of extra marriage leave days. |
| Parental Care Leave | Some provinces have introduced leave for employees meeting certain requirements to take 10–20 days of fully paid leave to care for elderly and/or sick parents. |
Get In Touch
Slasify is a one-stop platform offering Global Payroll, Employer of Record (EOR), and HR Outsourcing functions for the remote working generation. Our proven track record with Forbes Top 100 Companies and dedication to Diversity, Equity and Inclusion (DEI) make us your ultimate payroll partner. Join us on a global HR journey, where we cater to your needs across 150+ countries and unlock HR solutions tailored to you—Book a free consultation now!