China is forecasted to become the world’s largest consumer market by 2030. Unparalleled infrastructure and a highly skilled workforce make the country an attractive business destination. The government offers several incentives to encourage business owners to expand to China. The Land of the Red Dragon prioritises job security and a stable work environment while cultivating a culture of responsibility among employers and employees. Businesses can even participate in the government’s job creation initiatives and recruitment events to leverage opportunities to receive subsidies.
Work Permit
Foreign nationals need work and residence visas (separately) to work and live in China. However, applying for a work permit is restricted.
- The employee must be above 18 years of age.
- They must have an employment contract from a registered Chinese employer.
- A hired worker must furnish the employer’s work permit notification to apply for a visa.
- They should not have a criminal record.
Alternatively, the candidate must qualify as a high-end talent based on a point-based system. A minimum of 85 points are required. There is no restriction on age, professional experience, or qualification.
Getting a work permit notification
An employer must prove the following to apply for a work permit notification to hire foreign nationals:
- Registered business-ownership certificate.
- Domestic candidates are unavailable for the job role.
- Wages meet or exceed the regional standards.
- Industry-specific approvals and certifications.
Employment Contracts
China has a strict policy of documenting employment terms and conditions, with the employer responsible for proving compliance with regional regulations. Additionally, any salary deductions or job terminations must be clearly stated with a provable reason.
Working Hours
Full-time employees in China work eight hours a day, five days a week. They are entitled to an average allowance for a 44-hour workweek. All work beyond the hours mentioned in the employment contract is eligible for overtime as per standard, flexible, or comprehensive employment regulations.
Minimum Wage
China has a dynamic minimum wage system. The minimum wage is adjusted regionally and revised regularly to ensure fair compensation for employees. Shanghai and Beijing have the highest minimum monthly and hourly wage rates, respectively.
Shanghai: RMB 2,690 ($371) per month
Beijing: RMB 26.4 ($3.70) per hour
The lowest minimum monthly wage rates may lie between RMB 1,500 ($207) and RMB 1,700 ($234.50). It applies to Jilin and Xinjiang. The minimum hourly wage also applies to these cities and ranges from RMB 12 ($1.70) to RMB 14 ($1.90).
Minimum wage standards in most regions of China include social insurance and housing fund contributions by the employer. However, in high-minimum wage regions like Shanghai, these are additional to the minimum wage.
Cost of Living
The cost of living in China for an individual, excluding rent, is RMB 3,873.6 ($534.50), and for a family of four, it is RMB 14,013.4 ($1,933.70).
Vacation Allowance
There are about 12 paid public holidays in China, accompanied by additional rest days (also paid). If the employer needs employees to work on those days, they must be compensated according to the specific guidelines for the work arrangement type.
Sick leaves
Sick leaves are subject to regional regulations and must be specified in the employment contract.
Maternity leave
Female employees are entitled to 98-180 days of maternity leave, which may increase in case of multiple births.
Marriage leave
Employees can take 10 to 30 days of marriage leave without affecting their annual sick/bereavement leave entitlement.
Rules of Termination and Notice Period
China has elaborate termination-of-employment and notice period guidelines.
- A 30-day notice period and compensatory payment are necessary for permanent employment. However, the employer is not liable to pay any salary or inform with a notice period when the employee is:
- For serious violation of company rules.
- For convicted of a criminal offence.
- Taking another job that conflicts with the employer’s interests.
- Under fixed-term employment or contractual arrangements, the termination is pre-decided. Therefore, no party must notify the other about contract termination or state the non-renewal conditions.
Legislative Initiatives in 2025
The Chinese government has launched the “Made in China 2025” policy to encourage the manufacturing sector. The primary focus is on EVs, AI-powered robotics, aerospace engineering, biomedicine, rail infrastructure, and maritime technologies, which are set to create immense opportunities for businesses in the country.
How Access Financial Can Help
Access Financial supports individuals looking for work and businesses, recruitment agencies, and companies looking to hire in China with comprehensive services.
Please send us your query or speak to us at +86 21 5269 8801 to learn about our Employed or EOR solutions.
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