Employer of Record (EOR) China
Expand your team in China without the hassle of setting up a local entity—Hire, Onboard, and Pay employees with complete compliance through Globaine.
- Transparent & Compliant
- World-Class Expertise
- Cost-Efficient
Start Hiring in China
Simple & Compliant Hiring with Globaine's Employer of Record (EOR)
Hire in the China with Confidence
Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in China is handled efficiently and in full compliance with local regulations.
Fast Time-To-Hire
Onboard employees in as little as 12 hours.
Cost-Efficient
The most affordable solution on the market, saving you time and money.
Compliant Contracts
Contracts compliant with China's labor laws, in both Chinese and English.
Global Reach, Local Expertise
Hire not just in China, but in over 180 countries through our global platform, allowing you to grow internationally without entity setup. Globaine’s team provides the local expertise you need to ensure every hire is compliant, efficient, and hassle-free.
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HIRING
in China
Choosing an EOR in China ensures compliance with complex local labor laws, simplifies payroll management, and reduces administrative burdens. It allows businesses to quickly hire and onboard employees without establishing a legal entity. With an EOR, companies can focus on growth while avoiding legal risks and operational challenges.
Employment contracts in China must comply with national and local labor laws. While written contracts are mandatory, they should clearly define terms of employment, salary, and working conditions.
Written contracts are required before an employee starts work to ensure clarity on rights and responsibilities. They should be signed by both parties.
Salary must be specified in Chinese Yuan (CNY) and clearly outline the payment structure, whether it is monthly or hourly. Benefits, bonuses, and any allowances should also be included.
Common clauses include non-compete, confidentiality, and dispute resolution. These clauses must comply with local regulations and cannot unreasonably restrict the employee’s rights.
in China
1. What are the key steps in employee onboarding in China?
Employees must provide their identification documents, social insurance registration, and tax information. These documents are crucial for compliance with labor and tax regulations.
2. When should employees complete pre-hire medical checks in China?
Pre-hire medical checks are typically required for specific roles, particularly in industries such as healthcare, education, and food services.
3. What documents are required for onboarding in China?
Employees should provide their identification card, work permit (if applicable), social insurance registration, and completed tax forms.
4. Why businesses in China need EOR services?
5. How does EOR in China different from other countries?
in China
Payroll is typically processed monthly, with salaries based on a defined payment structure outlined in the employment contract. Structuring salary packages in China often includes a combination of basic pay, performance bonuses, and additional allowances (such as housing and transportation). This approach ensures competitive compensation to attract and retain top talent in the local market.
Payrollfor remote employees must comply with local tax laws and social insurance contributions in the province where the employee is based.
Minimum wage varies by region and can range from CNY 1,000 to CNY 2,500 per month, depending on local standards.
Payroll compliance ensures adherence to China’s labor laws, social insurance regulations, and tax obligations, avoiding fines and penalties for mismanagement.
in China
1. What are the income tax rates in China?
China uses a progressive income tax system with rates ranging from 3% to 45%, depending on the employee’s income level.
2. How does the tax system apply to non-residents in China?
Non-residents are taxed only on their China-sourced income at a flat rate. They may also be subject to withholding taxes based on their employment status and the type of income.
3. When should tax returns be submitted in China?
Tax returns must be filed annually by March 31 of the following year. Employers are responsible for withholding income taxes and remitting them to the tax authorities throughout the year.
4. What social security contributions are required in China?
Employers and employees must contribute to social insurance, including pension, medical, unemployment, work injury, and maternity insurance.
in China
Full-time employees are entitled to a minimum of five days of paid annual leave, increasing based on years of service (e.g., ten days after ten years).
Employees can begin using their leave after completing one year of service, but many companies allow leave to be taken earlier, subject to approval.
Maternity leave in China is typically 98 days, while paternity leave varies by province but generally ranges from 10 to 30 days. Leave entitlements are job-protected.
China has 11 official public holidays, during which employees are entitled to paid leave. Employers must provide additional compensation if employees work on these holidays.
in China
1. What benefits are mandatory in China?
Employers are required to provide contributions to various types of social insurance, including pension, medical, unemployment, work injury, and maternity insurance. Additionally, employers must adhere to statutory compensation laws, which outline the required severance pay and other compensations that employees are entitled to upon termination or layoffs.
2. How is the health insurance system structured in China?
China has a public health insurance system, but many employers offer supplementary health insurance plans that cover additional services.
3. When should employers offer retirement savings plans in China?
While not mandatory, many employers offer pension plans to attract and retain talent, which can include matching contributions to the national pension scheme.
4. What additional benefits are common in China?
Common benefits include life insurance, transportation allowances, meal subsidies, and wellness programs to enhance employee engagement and satisfaction.
TERMINATIONS
in China
The notice period depends on the length of service, typically ranging from three days for probationary employees to 30 days for employees with more than two years of service.
Employees can be terminated without notice for just cause, such as gross misconduct, or during the probationary period.
Severance payments are typically based on the length of service, with the standard calculation being one month’s salary for each year of service.
Mutual termination allows both parties to agree to end the employment relationship amicably, often involving a negotiated severance package.
FAQs
2. What specific cost savings can our company expect by using Globaine's EOR solution compared to setting up a local entity in China?
By using Globaine, companies can save on entity setup, legal fees, and long-term operational costs associated with running a local business.
3. How does Globaine guarantee fast onboarding within 12 hours in China, and what processes are in place to maintain this speed?
Globaine’s streamlined onboarding process leverages a local expert network, ensuring all documentation and compliance steps are handled swiftly.
4. Can Globaine handle complex employment scenarios in China, such as drafting bilingual contracts and managing terminations?
Yes, Globaine can manage bilingual contracts in Chinese and English, as well as handle terminations in line with Chinese labor laws.
