☑️ The Basics

Currency: CNY, Yuan (Rate)

Public Holidays: 7 public holidays (see here).

Employer Taxes: 32.30- 44.50% of gross salary (varies by region)

Official Language: Mandarin

Payroll frequency: Monthly

13th / 14th Salary: (what's this?) ****It is common practice to give employees an annual bonus equal to one months’ salary before the Chinese New Year.

Three things to know about employing in China

  1. It is common practice in China to give employees an annual bonus equal to one month's salary before the Chinese New Year.
  2. Employees are only entitled to paid vacation days after they have been working for at least a full year.
  3. Employee who are left unemployed upon dismissal are entitled to unemployment insurance benefits provided they have participated in the unemployment insurance scheme, have made contributions to it, are registered as unemployed, and are actively seeking work.

Employment in China

Notice Period

The notice period is 30 days. Employers can choose to offer one month's pay in lieu of notice to the employee.

Employers only need to give notice to terminated employees if the termination is due to illness or a non-work related injury, incompetence, or a major change in circumstances that renders the contract infeasible.

However, some local regulations can require employers to give prior notice (or payment in lieu of notice) when not renewing an employment contract.

Termination & Severance

Severance pay depends on the reason for termination, but in general, is equal to one month’s salary for each year of employment (capped at 12 months) and cannot exceed three times the minimum wage.

Probationary period

Probation is not permitted for employment contracts of less than three months, or contracts that expire upon completion of assignment.

Minimum Wage

The minimum wage varies depending on the region. The highest minimum wage is in Shanghai at 2,480 CNY per month.

IP protection and non-compete agreements

Non-compete agreements must be clearly defined in the employment contract, and must be reasonable. They cannot exceed two years after termination, and must include a monthly compensation for the employee. In practice, 30-60% of the employee's average monthly salary is acceptable as compensation.

Working Hours

Eight hours per day, 40 hours per week.


Overtime is limited to one hour per day; this can sometimes be extended to three hours, and is limited to 36 hours per month.