Hiring in China

China’s massive talent pool offers huge potential, but its intricate labor laws and tax system require expertise. Omnipresent serves as your Employer of Record (EOR), managing compliance with SAIC regulations without a local entity.

We handle payroll, benefits like the mandatory provident fund, and tax filings, so you can lead teams in Shanghai or Beijing with ease. Our platform delivers a tailored solution for China’s dynamic employment landscape.

• Rapid, compliant onboarding.
• Contracts in CNY, locally aligned.
• Guidance on market practices.
• Scalable hiring made simple.

Employer costs include Pension, the Housing Fund, and Medical & Maternity Insurance. Use the OmniCalculator to estimate costs or contact us for further information.

The rate of personal taxation varies depending on the income tax bracket the individual belongs to. This ranges between 3% - 45%.

Employee contributions include Pension, the Housing Fund, and Medical & Maternity Insurance. This list is non-exhaustive, please contact us for further information.

There are 3 times of working hours for full time employees: standard working hours system, comprehensively calculated working hours system, and flexible working hours system. 40 hours per week is common.

Overtime is capped and compensated.

Sick leave entitlements vary depending on local standards (per town and province), usually ranging between 3-24 months for non work related injuries.

Maternity leave: Governed by local regulations. In 2021, most provinces changed the local regulations and added maternity leave days. Normally, it is 158 days paid maternity leave, paid by the Social Security Bureau.

Paternity: In 2021, most provinces changed the local regulations and added the leave days. 10-30 days paid paternity leave, paid by the employer. In some cities, additional paternity leave is given.

Parental: Nursing mothers are entitled to 1 hour off per day for children under the age of 12 months old.

Employees must have continuous service of 1 year to be eligible for paid annual leave. Minimum annual leave entitlement ranges from 5 - 15 days depending on length of service.

Severance pay varies based on the reason for termination and is generally 1 months’ salary for each year of employment capped at 3 times the local average wage in the province where the employer is located, and cannot exceed 12 months.

If there is enough evidence to prove incompetence, severance pay is required. Otherwise, the severance pay is double. If the employee's monthly wages is 3 times greater than the average in the employer's district, then "double severance pay" means 6 times the average salary. Examples of sufficient evidence: - Missed deadlines, even when given detailed instructions and follow-ups - Mistakes + losses incurred to company, even when given very detail instructions

Besides the statutory severance, additional severance pay can be negotiated between the employer and the employee, and is considered a “negotiable” right.

Severance is payable in all circumstances except where:

• The employee failed to satisfy the conditions of their probation period; or

• The employee seriously violated company regulations or committed a civil crime, and the employer can provide clear evidence of this; or

• The employee resigns

Termination is very difficult.

Termination of employees must be for cause. An employer may not dismiss an employee unless it is due to any of the following statutory grounds stated under Labour Contract Law.

It is difficult to terminate an employment contract unless by mutual agreement with grounds stipulated by law to terminate the employee is fulfilled.

If termination is made under statutory grounds listed in Article 40 of the Labour Contract Law, payment in lieu of notice is applicable.