Employer Of Record in China

We make it easy and painless to expand your business into China. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.

Accelerate your growth into China Compliantly and hassle-free

At Serviap Global we handle all employee onboarding, payroll, compliance, risk, mitigation and benefits, so you can focus on what matters most – your business.

How we can help you expand in China

As your EOR in China we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary. 

Your candidate is hired by a PEO in China provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team. 

Expand to China with Serviap Global

Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity. 

In just a few days, you can easily and safely build a presence in China being sure that your staff will be hired in compliance with labor and tax regulations

Table of Contents

Quick Facts

Chinese Yuan (CNY)


Payroll Cycle:


China Country Facts

China has the largest population in the world and the second largest economy worldwide. It is one of the oldest civilizations on earth with its unique and attractive culture and has developed at record speed.

China is the biggest economy in the world for e-commerce adoption and mobile payment. They have also developed a lot of innovative products and business models.

The Economy

China has remained the largest single contributor to world growth since the global financial crisis of 2008. Somehow, China remains as a developing country, because its per capita income is a fraction of advanced countries in the world, its market reforms are also yet to be complete.

China uses a market-based system, which they changed from a centrally planned system some time in the 70s. But China’s economy is starting to focus more heavily on consumption- and services rather than investment and manufacturing

The Importance of Small and Medium-sized Companies

Small and medium-sized enterprises actually contribute a lot to China’s growing economy, including about 80% of non-government employment. The small and medium enterprises (SMEs) in China have grown quickly over the past two decades, and this has contributed to amazing economic development in the country. However, limited SME financing and technology that is weak plus the external market which could also use improvements is causing issues in China.

Any firm that will support China has their full support in helping to grow their economy. Their latest measures are to boost refinancing, which Premier Li Keqiang says will become important in the future.

Population Characteristics

1.6 billion people populate China. It’s an older population compared to many other countries around the world, with the average age being 37 years old. The literacy rate is 96.4%. One of the biggest languages in China, however, is English and there are about 10 million speakers all over the country.

Economic Opportunities

China has an economy which is emerging to offer a lot of opportunities, especially for foreign investment. This is a country that has a lot of potential for growth because it has access to a large market and a lot of labor costs. However, because of the differences in political and cultural differences, those unfamiliar with China’s laws should take caution to speak with experts who can help you avoid risks

Key Sectors of the National Economy

There is a new multi-year plan China has recently put out which proposes to help develop the country’s economy. It hopes to increase resources by helping with their efficiency, and hopefully encouraging innovation whilst meeting climate change commitments. Major industries are in:

  • Manufacturing Mining Energy Agriculture

Human Talent
China has taken steps to encourage investment within the education sector, whilst tightening its regulations on academic tutoring for children who are of school age. This country believes that if it provides skills for its workforce, then its economy should continue to grow. They warmly welcomed foreign investment for this part of their economy. China believes upskilling its workforce is key to the country’s continued economic

Prominent Cities for Business

Is the biggest city in China and is the center for much of the economy, especially in transport, science, finance, trade, exhibition and shipping. This is a port in China, and Shanghai has trading partners who have expanded this to over 200 countries. Hong Kong is China’s international trade center.

Is the capital of China, municipality directly under the central government, national central city, and megacity of the People’s Republic of China. It deals with politics, culture, international exchange, and technological innovations which are approved by the State Council.

Is a central city in China, a famous port city in the world, and it is also an important finance, commerce, trade, transportation, exhibition, and shipping center. And for 2000 years, it has been a political, military, financial, cultural and scientific center. Shenzhen is another one of the big economic locations in China, and it is one of the four first-tier cities in China. Shenzhen hosts marine and air hubs plus foreign trade ports, and is among the best in the world. It is also an important place for finance and economy.

Technological Ecosystem

In 2030, China is hoping to become a techno-utopia with Chinese characteristics. President Xi Jinping wants to make this vision a reality by taking up deep tech within China as a whole. It wants to be involved in “deep tech” such as AI, cloud-computing, cars that drive themselves and innovative computer chips.

Facilities for Foreign Investment

Most industries in companies around the world have a range of options for how to build their companies within China, this includes wholly foreign-owned enterprises (WFOEs), companies limited by shares, foreign- invested partnerships (FIPs), and other investment vehicles.

China has proposed new “negatives” in a list for foreign investments. Items on the negative lists: nationwide and for pilot free trade zones (FTZs) which were cut to 31 and 27, down 6.1 percent and 10 percent, respectively. From 2017 to 2020, China cut some more items from 93 to 122, to 33 and 30, which introduced major opening-up measures in industries such as financing and automobiles.

Business Culture in China

Presenting Business Cards When you are handing over your business card in China, use both hands or only the right hand to make sure that the writing is facing the other person.

Enthusiastic Welcomes Your Chinese colleagues may applaud you when they introduce you, this is how they green and show approval. It is appropriate for you to then applaud them back.

Highlight Your Assets Be sure to emphasize the status, size, reputation and wealth of your company.

China Gastronomy: regional and traditional cuisines

Peking duck (北京烤鸭 Běijīng kǎoyā) is a well-known dish that originated from Beijing. This is a savory dish that has think and crispy skin on the duck, which is then sliced and enjoyed in pancakes with a sweet bean sauce or soy and mashed garlic.

Kung Pao Chicken (宫保鸡丁 gōngbào jīdīng) is a Sichuan-style specialty that is popular amongst the citizens and visitors to China. The key ingredients are diced chicken, cucumber, dried chili, and fried peanuts (or sometimes cashews). Hot pot, or hotpot or 火锅 huǒguō, is an especially popular in Sichuan Province or Chongqing. They place this dish in the middle of the dining table on a hot hob, as this is a pot of soup stock or broth. They place condiments and foods around the hob. People can then place whatever they like into their broth.

Eight Treasures Rice Pudding is a traditional Chinese dessert that has glutinous rice and candied fruits, which can sometimes include red jujubes, lotus seeds, raisins and walnut kernels.

General Highlights







Num. States / Province

23 provinces

Principal Cities

Shanghai, Hong Kong, Guangzhou, Wuhan


Standard Chinese

Local Currency

Chinese Yuan Renminbi

Major Religion


Date Format


Thousands Separator Format


Country Dial Code



Time Zone

China Standard Time (CST) which is 8 hours ahead of UTC. In China, the time zone is known as Beijing Time.


1.6 billion

Border Countries

China is a country in East Asia bordering the East China Sea, Korea Bay, and the South China Sea.

Continental surface

9.6 million square meters

Fiscal Year

January 1 – December 31



Minimum Wage

2480 CNY/Month (approximately $389 USD)

Taxpayer Identification Number Name in

the country



Current President

Xi Jinping

What you need to know about employing personnel in China:

Laws That Regulate Labor Relationships


Brief Description

Constitution of the People’s Republic of China

This is the constitution of China and is the basis of many changes to China’s social and economic institutions, plus a revised government structure.

Labor Law

Most of the fundamental laws in employment relationships are highlighted in the Labour Law of the People’s Republic of China.

Tax Law

This is a legal code which is based on the Constitution, and this code adjusts the relationship between the state and members of the society, including citizens and non- citizens for their rights, obligations and tax.

Social Insurance Law

•       Pension insurance

•       Unemployment insurance

•       Medical insurance

•       Work-related injury insurance

•       Maternity insurance

•       Housing fund

Key Tax and Labor Authorities


Brief Description

The State Taxation Administration (STA)

It is the equivalent of the Internal Revenue Service of the United States

The Ministry of Human Resources and Social Security of People’s Republic of China

This is a ministry which is under the State Council and handles national labor policies, regulations, standards, and managing the national social security.

Labor Contracts

The Chinese Labor Contract

Any valid labor contract must be written clear in Chinese and include:

•       Employment term and probation period term

•       Job description

•       How many working hours, rest hours and vacation days

•       Severance packages for overtime work and termination of employment

•       Safety at work conditions

•       Social benefits

•       General information: Employee name, ID, company name and address, etc.

Asia-Pacific Economic Cooperation (APEC) and the Asia-Pacific Trade Agreement (APTA)

They formed this to support a growing regional economy.

Work Hours

Chinese people work 8 hours a day with five working days a week and a maximum 44 working hours a week. In China, business hours are generally set between 9:00am and 6:00pm. But typical business hours vary by different working units and regions.


Legal Benefits in China

Minimum Wage

2480 CNY/Month (approximately $389 USD)


The law requires any overtime must not exceed 3 hours in a day.

There’s a limit of 36 hours of overtime each month. Overtime hours on a weekend must be paid at 2 times the employees’ normal salary. If an employee must work on a national holiday, they pay he or she 3 times their normal salary.

Annual Bonus

The annual bonus can be paid at the end of the year, as an additional one month’s salary. Or, the bonus may be spread out evenly in paychecks throughout the year.

Work-Related Injury Fund

In China, there is a work-related injury fund that covers the cost of treatment when an injury at work occurs, and they require employers to pay insurance for work injuries. Employees who work in certain weathers receive allowances.

Vacations or PTO

In China, there is a work-related injury fund that covers the cost of treatment when an injury at work occurs, and they require employers to pay insurance for work injuries. Employees who work in certain weathers receive allowances.

Leaves of Absence

Employees have the   right to paid absences for the following things:

•       Wedding leave

Women can be married at 20 and men at 22, and when they are married they are entitled to 3 days of wedding leave.

•       Funeral leave

In the case of the death of an immediate relative of the employee (parents, spouse, children) the employee is entitled to 1 to 3 days of funeral leave.

•       Family visit leave

If the immediate family (spouse/parents) does not live together with their family, employee leave days for a visit to a spouse can be up to 30 days per year. Leave days for a visit to parents can be up to 20 days per year and up to 20 days per 4 years.

•       Sick leave

The number of annual sick leaves permitted shall be pre-decided and mentioned in the employment contract of the employee. In case of a severe illness, employees in the first year of employment are entitled to a sick leave of a maximum of 3 months; 1 month of sick leave shall be increased for every next full year, but not more than 24 months total.

Provisions on Female Labor Protection under Special Circumstances (State Council Decree No. 619) established maternity leave for female who are employees in China to 14 weeks.

Employers Contribution or Labor Cost

Annual Taxable Income

Over this amount

Not over this amount

Tax % on Excess


The first 5000 yuan


Above 5000 yuan


3% – 45%

Corporate Tax Rates

Taxable Gross Income

Tax Rate

Fixed tax rate


Some enterprises operating in encouraged sectors such as high-tech



5.1 % of the monthly insured amount. Disabled and low-income insured persons pay 0%, 2.55%, or 3.825% of the monthly insured amount, depending on the degree of disability or total family income. The monthly insured amount is NT$18,282.

Public Holidays

The Labor Code provides for public holidays that are observed in China:


Holiday Name

January 1

New Year’s Day

1-3rd day of the Lunar Calendar

Spring Festival

May 1

International Labor Day

Dragon Boat day of the Lunar calendar

Dragon Boat Festival

Mid-Autumn day of Lunar calendar

Mid-Autumn Festival

October 1-3

National Day

When you wish to terminate a person in China, the labor union needs to ensure that there are justifiable reasons, and there is notice which is required to be given alongside severance pay. Even if an employer gives a notice period, there still needs to be a valid termination reason, but the employer does not need to give the employee that reason.

Type of Termination

Brief Description

Justified Dismissal

Termination with cause does not require any notice for the employee, but

it needs to fall within the category of justifiable reasons.

Unjustified Dismissal

Heightened pressure in China’s labor market means that employers are commonly required to terminate employees to optimize their business operations. Legally speaking, this is not easy to accomplish.

Voluntary Resignation

An employee may terminate employment with 30 days’ written notice. Employers must provide 30-day advance notice to an employee to part ways with mutual consent, and must pay severance unless the employee failed to satisfy the conditions of his or her employment contract and/or violated any laws or company policies.

Other forms of compensation upon termination include:

Severance pay is calculated as one month’s salary for every year of service.

Length of Employment

Severance Amount

Each year of employment

One month’s salary

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