Don’t risk non-compliance with local employment, social insurance, and tax regulations.
Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in China. Traditional methods of establishing global employment and subsidiaries in China typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services is helping hundreds of organisations onboard new employees in China in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process.
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%.
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.
Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.
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.
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The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in China are strict with penalties for non-compliance. Let our team take care of the global employment solutions such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We are here to help you every step of the way.
Omnipresent makes it easy to hire, pay, and support your international team with our top-notch services including our global EOR & PEO services. Book a call with us to start building your global team today. Book a call with us to start building your global team today.
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