Services
Back
$399/month
$49/month
2% of gross salary / month
A China Employer of Record (EOR) is an HR provider that hires and pays your team in China on your behalf.
International companies expanding into China or global firms interested in hiring specialist talent commonly use a China EOR solution.
Horizons is a leading China EOR, hiring and onboarding your China-based team, processing payroll, and ensuring full compliance with local labor and tax laws. A China EOR, also known as a China Professional Employer Organization (PEO), absorbs all local employer liabilities.
Partnering with our China EOR is the quickest and most cost-effective way to enter the Chinese market.
Hire in China, and pay employees through our platform or app.
Our China EOR solution is the most affordable on the market.
Fast China onboarding, hire in as little as 12 hours.
We draft compliant China employment contracts.
We manage all China “Five Insurances” mandatory benefits.
It doesn’t stop with China — we hire employees globally.
A China EOR is an independent HR firm that hires and pays your team in China in full compliance with local laws. By engaging a China EOR, you no longer need to set up a China entity or subsidiary (such as a Wholly Foreign Owned Enterprise or WFOE) to have a China-based team. A China EOR will:
A China EOR may operate only in China or be a global EOR that hires employees in China and other countries worldwide.
The benefits of using a China EOR service, rather than setting up your own subsidiary in China include:
Horizons stands out as a China EOR through:
If you choose to work with an Employer of Record in China, the first step you should take is to assess your hiring needs. You should think carefully about your reasons for hiring Chinese workers and what you expect them to provide for you. It’s also critical to detail the roles and responsibilities you’d like them to take on and also to plan the number of people you’ll need to employ. You can do this on your own, or if you’ve already found an EOR you wish to engage with, you may ask that provider to help you with your planning.
Another crucially important part of your hiring plan is to determine how much your desired Chinese workers would cost and then to see if this total falls within your hiring budget. To calculate the cost of hiring your workers, you’ll need to know how much you should offer to create competitive salaries, plus what you’ll need to add to this total to comply with China’s Social Insurance Law. Be aware that this amount will vary by city or province in China rather than using a nationwide standard, as is common in most countries. Finally, you will also need to add on EOR fees to find your total cost.
One other important question to consider is whether or not you need to hire full-time employees (FTEs). In some cases, hiring Chinese contractors/freelancers will suffice and can be a much more affordable option if you only need a small amount of work done on a specific project.
You may have already worked with an EOR service provider, and if you’ve had excellent experience, you may not need to look further. However, if you’ve never worked with an EOR, it’s important to recognize that they vary widely in both their fees and the range of services that they offer. They also have different levels of experience hiring in China, which is very important.
To avoid worker dissatisfaction and noncompliance issues, you should perform due diligence before selecting a provider. Choose an EOR experienced with Chinese regulations, including compliance with the State Taxation Administration (STA) and guidelines from the Ministry of Human Resources and Social Security (MOHRSS).
If you have contacts who have hired in China before, you can ask them for recommendations. Otherwise, you can look online to find reviews on trusted websites. Most EORs work in many countries around the world, so you can narrow your search by looking for references to China and search through the feedback you find. An even more direct route is to contact an EOR directly and ask about its employment record in China. Don’t be afraid to request references or statistics as any reputable provider should be able to back up its claims of compliant hiring experience.
While EORs may have experience working in China, many may have made mistakes in the past that caused major problems for their clients. This is why a good EOR partner needs to have legal experts and HR professionals on its payroll, another factor you can look into. You can find out if the provider employs these professionals and even ask targeted questions about your specific concerns (ex., social security contributions in a specific province) before you choose a partner.
China’s Labor Contract Law provides most of the regulations for employment in the country though it also allows some variance between different cities and provinces. A professional EOR will employ experts with local knowledge of employment statutes as well as guidelines for tax payments and mandatory social security contributions. It’s also crucial that they know and adhere to the Personal Information Protection Law (PIPL), which dictates standards for collecting, storing, sharing, processing, and protecting the personal information of your employees.
Some EORs help with recruitment, while others leave this important function entirely in the hands of their clients. It’s entirely possible, though challenging, to source talent in China on your own. You can do this by formulating job advertisements and posting them on your company’s website, popular job search sites in China, and also on various social media. Generally, you should translate your posts into Chinese, even if you want to retain information in your original English or other languages. Your posts should clearly detail each job’s roles and responsibilities, necessary qualifications, and information on how to apply.
Without intimate knowledge of China’s recruitment industry and how best to target local workers, however, you may still struggle to locate and attract the top talent you’re looking for. This is why most foreign companies choose to work with recruitment agencies or EORs that also provide recruitment services in China. Both of these types of professional organizations have several advantages you can leverage. They typically have access to large talent pools of pre-vetted applicants as well as knowledge of the best social media and job sites to post vacancies on for maximum results. They also know how to recruit staff in compliance with Chinese anti-discrimination laws and understand the distinct rules for hiring foreign nationals in China. Finally, these service providers should be able to coordinate remote interviews for you and may even provide templates for candidate assessments.
When you’re happy with your choices of candidates, you’ll need to act quickly and offer them jobs before other employers snap them up.
Normally, your EOR partner will generate the contracts you need to hire local Chinese workers or foreign nationals. You will need to provide the specific details of each job’s duties and responsibilities. It may also assist you in negotiating the final contract terms for working conditions and compensation with your successful candidates. This can include suggesting appropriate salaries and any additional benefits you may wish to provide to sweeten the deal. Of course, the EOR will ensure that these terms comply with Chinese laws.
All of this information will typically be compiled into a contract and job offer, which will then be sent to the candidates.
The EOR will normally create and send a candidate a bilingual contract which helps you both understand the terms clearly, though only the Chinese text will be legally binding. It will then wait to receive it signed and returned or signed electronically. With the contract in place, your new employee will be officially hired and ready to begin working shortly after onboarding has taken place.
As the worksite employer, you may need to prepare orientation materials and training courses for your new employee. You’ll likely also need to provide them with access to the data and software you work with, creating accounts and permissions as needed. You’ll also want to introduce them to their new coworkers.
The EOR also engages in several onboarding tasks, starting with the collection of personal information and signed policies and other documents. With this information, the EOR will be able to register the employee with the Chinese social insurance and housing providence fund authorities. It should also collect their banking information to set up payroll payments. If necessary, the EOR should be able to secure work permits through the National Immigration Administration for foreign employees.
While you’re likely used to managing payroll internally, essentially all EOR providers will supply this service for your employees in China. This is not only a time-saver for your own payroll staff but also a necessity – without experience with and knowledge of China’s unique payroll rules, it’s nearly impossible to manage this function compliantly.
When an employee is onboarded, their salary, tax, and deduction calculations are set up within the EOR’s management platform. However, to run payroll for any given pay period, you’ll need to provide the platform with their time and attendance data. Many EORs have time-tracking modules built-in, so you can directly input this data on an ongoing basis. Those that don’t will show you how to submit this data to them for processing. The platform automatically calculates each employee’s gross salary and then subtracts tax withholding and social security contributions to arrive at their net salary. It pays these salaries, withholds individual income tax (IIT) with holding reports to the SAT via the Golden Tax System, and submits both employee and employer contributions to Social Security and HPF authorities. Finally, it provides detailed payslips to your Chinese employees for their records.
You’ll need to fund payroll for each period. The EOR will regularly invoice you for your employees’ gross salaries, your employer contributions to social security, and its service fees.
Just as it does for payroll, a China EOR will administer mandatory benefits that include five types of social insurance: pension, medical, unemployment, work injury, and maternity insurance. This means that it will calculate the contributions that the employee makes to these programs as well as your employer contributions. It will pay these contributions and report to the administration as needed. The EOR will also keep track of your employees’ paid time off (PTO) entitlements, tracking their leaves for holidays, sickness, maternity, and other reasons.
If you want to give additional benefits to your employees, such as private pensions and medical insurance, your EOR partner may be able to provide them through its own schemes or links to partners. Some EORs will manage these benefits on your behalf, while others leave this to you.
Compliance is perhaps the most important service that any EOR can provide, as it allows you to continue to legally employ Chinese workers without needing to own an entity in China. In general, an EOR will maintain compliance with all Chinese employment laws and submit necessary reports to government bodies like the SAT and MOHRSS. It ensures that your payroll is properly audited, payments to employees are correct, and taxes and benefits are correctly filed and reported on. Finally, it must advise you on any statutes in the Work Safety Law that you may need to follow to keep workers safe.
As the worksite employer, you’ll need to ensure that you’re following the legal guidelines for employment that Chinese workers are entitled to. This includes respecting their working hours, treating them without discrimination, and making sure they receive the compensation they earn for their work.
Monitoring how your employees are performing is normally the responsibility of the worksite employer. After all, the EOR doesn’t manage their day-to-day tasks and schedules – you do. To help measure and improve their performance, you’ll need to help your employees set goals and take steps to attain them. You’ll normally also manage performance evaluations to review how they’ve done over regular periods and provide them with feedback sessions so they can understand your assessments. Some EORs can help you with these tasks by providing you with review form templates that you can customize to suit your needs and scheduling software for assessments and feedback meetings.
When issues arise outside of the sphere of performance, however, the EOR takes the lead in dealing with them. As the legal employer of your local staff, it acts as their go-to HR contact for issues regarding pay, holidays, and even work conflicts and legal issues. While you can work to keep your employees’ experiences positive, the EOR has to maintain its legality in regard to Chinese law.
If you work with Chinese workers long enough, you’re bound to encounter change and employee turnover. If you have an employee who wants to end their contract, you may need to handle the transfer of their work to a new hire through training, job shadowing, and other handover procedures. At the same time, the EOR will need to handle the administration of this transition. It will need to onboard a new employee while also offboarding the old one. This can involve finalizing their pay and notifying tax and social security authorities that they’ll no longer be employed with you.
Other employees may need to be actively terminated either for individual reasons or due to economic necessity. In these cases, you may wish to terminate their contracts and indicate as such to the EOR, but it’s the EOR that is ultimately responsible for their legal terminations. It will assess the causes of these terminations to see if they’re justified due to gross misconduct. If not, the EOR will have to handle the terminations in line with the Labor Contract Law, ensuring proper notice periods, severance payments, and legal procedures are followed.
When you engage a China EOR, it will:
To summarize, when your company engages a China EOR, your business is able to focus on strategic objectives and operational needs within the Chinese market, with the EOR taking care of HR functions and legal compliance.
One of the principal reasons for engaging an EOR in China is to ensure full compliance with China’s employment laws. Here we explain in detail how a China EOR ensures:
China requires all employers to provide a compliant employment contract that states the employee’s compensation, benefits, and termination requirements. Employment contracts in China should state the salary and additional compensation in the local Chinese Yuan Renminbi.
When you partner with a China EOR, a team of local experts can assist in drafting strong employment contracts compliant with local regulations. An EOR in China can provide your business with labor contracts in the three forms below.
No probationary period.
At completion of the project.
Max. one months per year of employment.
Directly related to contract duration:
1-year contract: 1 month probation
2-year contract: 2 month probation
3+ year contract: 6 month probation
30 days (minimum and maximum allowed by labor law)
2 months salary per year of service
In cases of justified termination: 1 month’s salary per year of service
In cases of dismissal on serious grounds: none
Not available
30 days (minimum and maximum allowed by labor law)
1 month salary per year of service
China operates with a standard five-day working week that should not surpass 8 hours of work per day or 44 hours per week. Companies typically run on an 8am to 6pm schedule with a one-hour lunch break. There is a strict limit on overtime in China. Overtime is not allowed to exceed 36 hours per month, except where there is an emergency event requiring it. A China EOR ensures that all employment contracts reflect these statutory limits.
150% of the standard hourly rate (also known as ‘time and a half’);
200% of the standard hourly rate, or a day off (also known as ‘double time, or a day in lieu’);
300% of the standard hourly rate (also known as ‘triple time’).
China has a range of national public holidays that are celebrated annually. In 2025 these holidays are:
| Date | Holiday name |
|---|---|
| January 1 | New Year’s Day |
| Jan. 28 – Feb. 4 | Chinese New Year |
| April 4-6 | Qingming Festival |
| May 1-5 | Labor Day |
| May 31 – Jun. 2 | Dragon Boat Festival |
| October 1 – October 8 | Mid-Autumn Festival |
| October 1 | National Day |
The amount of paid time off employees are eligible to receive is based on how long they have been employed at their current company:
no leave entitlement
5 days of paid leave annually
10 days of paid leave annually
15 days of paid leave annually
Employees are entitled to between 3 and 24 months paid leave to address medical ailments and treatment. The exact amount of time off will be based on how long the employee has been with the company. Sick pay should never drop below 80% of the local minimum wage.
Workers compensation for injuries or illnesses incurred while working cover employees with legal entitlements of up to one year’s leave at full pay to receive medical treatment.
Take a look at the chart below to learn more about the specifics of sick leave standards in China:
no leave entitlement
5 days of paid leave annually
10 days of paid leave annually
15 days of paid leave annually
40%
50%
60%
In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.
China provides all female employees with 98 days of paid maternity leave. They can begin this leave within 15 days before child birth. Depending on the city, women over 24 are generally provided an additional 30 days for their “late maternity leave.”
Women are traditionally granted full pay during their leave through social security or by their employers. China has laws in place that legally protect women from being terminated while pregnant or breastfeeding a newborn child.
The laws for paternity leave differ greatly by location but typically do not exceed 14 days. Men in Shanghai usually receive three days of paternity leave, while men in Shenzhen generally are granted ten days.
An EOR in China will ensure that all maternity leave obligations are fully complied with.
As well as standard Chinese compensation laws, many guaranteed benefits and supplemental options are available to employees. As China celebrates seven national holidays, the statutory minimum notes that employees be paid leave for each holiday. While this is the statutory minimum, several employers elect to provide employees with greater flexibility around holidays like the Chinese New Year.
In addition to national holidays, annual vacation leave is another important employee benefit in China. Depending on how long an employee has been with an organization, there will be a set number of vacation days each year. In China, vacation days follow the following criteria:
For foreign employers that are looking to hire either mid-level or senior executives, more vacation days are generally offered. In fact, it is common for such offers to come with up to four weeks of vacation time per year.
In order to terminate an employee in China, there must be strong cause for dismissal and clearly documented grievances leading up to the termination. The initial employment contract must contain an agreed upon probationary period that can last up to six months in length.
Specific time requirements for submitting a notice of termination vary widely by industry. Any employer terminating an employee of between one month and two year’s tenure must provide at least one week’s notice. Employees working for a company for over two years require notice of one week for each year of completed service up to 12 weeks of notice.
Employers have the option of including “payment in lieu of notice” in employee contracts which permit employers to pay employees instead of providing them with a notice of termination. This is common in Chinese business practice.
Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time.
Setting up a EOR in China can mitigate risk for foreign companies and provide guidance through this process.
Chinese employees are provided statutory benefits through the “five insurances” practice in China. These include health insurance, pension, worker’s compensation, maternity benefits, and unemployment insurance. However, additional benefits, such as housing, are predicated on the income tax bracket of the individual employee.
These benefits are paid out of social contributions paid by both the employee and employer. More on this below.
Different rules are applied to social security contributions from foreigners and Chinese nationals.
Foreign employees in Shanghai are not yet required to pay the Chinese social security for foreign nationals. In other cities in China, foreigners must pay the full amount of Chinese social insurance.
An EOR in China will ensure that all employees are paying the correct contributions.
Effective January 1st, 2019, China has adjusted tax brackets and changed residency rules to reduce the tax burden on low-income earners, with new special additional deductions available for resident taxpayers.
The Individual Income Tax is calculated on an annual basis. The China EOR will automatically withhold taxes in advance on a monthly basis on the accumulated income and deductions. Individuals may have additional taxes or tax returns to claim through the annual settlement process.
Standard health and pension insurance is provided through the national system, although supplementary health insurance can be provided to the employees.
The minimum wage in China varies by region. For example, Shanghai has the highest monthly minimum wage at RMB 2,690, and Beijing has the highest hourly minimum wage at RMB 26.4 (China Briefing)
The 13th month salary is the standard type of bonus provided to employees working in China at the end of the year. Rewarding employees with the 13th month salary is extremely common in China. As such, we recommend being clear with the employee during the employment contract phase so the employee is aware of the bonus stipulations regarding their annual salary and bonus structure.
As mentioned above, Chinese employees are provided with statutory benefits through the “five insurances” practice in China. These include health insurance, pension, worker’s compensation, maternity benefits, and unemployment insurance.
They are all funded through ‘social pooling’, formed from payments made by the state, employer and employee, to varying degrees. Entitlements are then acquired through contribution.
However, additional benefits, such as housing, are predicated by the income tax bracket of the individual employee. China’s housing fund system allows Chinese employees to save money towards purchasing their own house, thus providing a way for local employees to have the means to ensure social security and stability in the country. The Housing Fund has no social pool, since the entire amount goes directly to employees’ personal Housing Fund accounts. An EOR in China will always ensure that social security obligations are fully complied with.
Hire borderless talent with Horizons
With Horizons, you get quick service, transparent pricing, and expert support.
A China EOR is a service provider that helps foreign businesses hire FTEs in China without having to own entities there. It can use its own entity or one owned by a partner to legally hire employees on the client’s behalf. This will make the EOR the legal employer of the local Chinese staff. EORs also manage payroll, benefits administration, and other HR functions for these employees.
Horizons can hire your staff everywhere in China through its PEO network of local entities specialized in HR management services.
A few alternatives to using EOR services in China exist. The main one is to go through the time and trouble of registering a legal entity in China. By incorporating a limited liability company or a wholly foreign-owned enterprise in the country, you can legally employ Chinese and foreign nationals.
Another option is to work with contractors/freelancers who may be able to provide you with the work you need without having to be hired as FTEs. This is a much easier and more affordable option, and most EORs also provide related services for contractor hiring. However, there is also a high risk of incurring penalties for worker misclassification that must be considered.
The cost of living in China and the salaries of Chinese workers are a lot lower than in the US and many other countries. However, the cost of hiring a Chinese employee has to take into account a competitive salary and possible benefits that can attract them, as well as the mandatory social security contributions, which vary by province, you must make as their employer. Finally, you’ll need to budget for your EOR’s service fees which can range from $299 to as much as $1000/month depending on the provider.
The China EOR prepares all payroll calculation (including social charges, taxes, benefits, expenses claim, etc.) on your behalf – as the employer of record of your employee(s) in China.
There is no specific payroll tax in China, but there are mandatory contributions to social security that the employer must contribute. Employees also have some of their wages withheld for income tax as in most countries. However, the EOR is responsible for calculating, submitting, and reporting on these payments.
When you hire a Chinese worker through an EOR, its Chinese entity becomes the legal employer. This means that it is ultimately responsible for compliance with all Chinese tax and labor laws.
All mandatory social charges contributions, housing fund contributions and income tax payments are paid directly to the Chinese authorities and relevant third-parties by Horizons. Both the foreign company and its employee(s) can access the records of all payments at any time.
The number of employees dispatched in China is not limited and can vary according to the ongoing projects and business development.
All mandatory payments stated on the labor contract shall be paid by the China PEO. Additional payments (e.g. expenses) can be reimbursed by the PEO on your behalf.
No severance pay has to be paid during the probationary period, then the amount of the termination pay is usually 1 or 2 months salary per year of seniority, depending on the labor contract nature and the reason for termination.
In China, work from home is authorized as long as the employer gives its approval.
Horizons provide China recruitment services and EOR services, available for both foreign and local professionals from any background.
Horizons can implement any changes directly with the employee on your behalf.
The overall salary package of employees in China includes base salary, top-ups and any benefits. The key elements include:
Base Salary
Optional ‘top ups’, such as a performance bonus, commission or remote work stipend
’13th month’ salary
Compulsory benefits including leave entitlements, the five social insurances and contributions to the housing fund
Additional (optional) health insurance.
When expanding internationally, it is crucial to calculate what the total cost per employee (the ‘payroll cost’) will be. In China, this means adding together the cost of net salary, employer and employee social insurance contributions, any additional allowances and income tax.
In China, the terms “Employer of Record” and “Professional Employer Organization” are generally used interchangeably.
Recruit, hire and pay remote teams with Horizons
Countries
Curencies
Support
HR Experts
Recruit, hire and pay remote teams with Horizons
Countries
Currencies
Support
HR Experts
Horizons © 2024 – Privacy Imprint & Terms Third-Party Processor GDPR Policy
Recruit, hire and pay remote
teams
without a local entity
We respect your data, and process it according to our Privacy Policy
Holiday Schedule in China [2025]
China Employer Of Record Peo
