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China PEO &
Employer of Record

🏆 TRUSTED IN CHINA 100% owned China entity

🇨🇳 BEST-IN-CLASS 1,500+ hired in China since 2017

🤝 LOCAL PRESENCE Come visit our Shanghai office

🚀 TIME TO HIRE 12 hours
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The Horizons PEO solution allows you to hire in China, without setting up a costly subsidiary.

1.5k staff hired in China since 2017 across 29 provinces

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The intuitive Horizons PEO platform enables you to hire and pay employees in China with just a click of the button.

Horizons enabled us to hire 23 remote software engineers throughout China. We couldn't have been any happier.

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China

Hire in China

Labor Laws

Compensation & Bemefits

FAQs

Hire and pay talents
with Horizons in
180+ countries.

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stay compliant with chinese labor laws

Hire in China

Horizons provides compliance solutions to ensure your business in China operates in line with Chinese labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, China in a range of industries, from customer service, to accounting services, to software development. We also process monthly payroll, and, as a China Employer of Record, absorb all local employer liabilities. Partnering with our China PEO is the quickest and most cost-effective way to enter the Chinese market.

Must-knows when hiring with Horizons EOR in China

💻 An easy-to-use platform

Every provider nowadays has a platform, right? The Horizons platform is tailored for the Chinese market.

📈Scalable Pricing

Our China EOR solution is $290 USD, per employee, per month.

🚀 Time-to-hire

We’re lightning fast, promise! We let you hire in as little as 12 hours.

📝 Contracts

Our platform helps you to draft a compliant, bilingual China labor contract in minutes – so you don’t have to.

🛒 Local benefits

We manage all China “Five Insurances” mandatory benefits. Further, we also let you offer competitive health plans.

🌎 Global Coverage

While China is hands-down one of our key markets, it doesn’t stop here — we hire employees globally.

stay compliant with China labor laws

Labor Laws

One of the principal reasons for engaging a PEO in China (also known as a ‘China Employer of Record’ or ‘China EOR’), is to ensure full compliance with China’s employment laws. Here we explain how a China PEO ensures:

01. Compliance with China employment contract requirements

02. Compliance with working hours, national holiday provisions, and China social security requirements.

Employment contract types

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 any additional compensation in the local Chinese Yuan Renminbi.

When you partner with a China PEO & Employer of Record, a team of local experts can provide assistance for drafting strong employment contracts compliant with local regulations. A PEO in China can provide your business with labor contracts in the three different forms set out below.

Fixed-term

Probationary period

Directly related to contract duration:

1-year contract: 1 month probation
2-year contract: 2 month probation
3+ year contract: 6 month probation

Termination notice period

30 days (minimum and maximum allowed by labor law)

Severance

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

Indefinite

Probationary period	Not available
Termination notice period	30 days (minimum and maximum allowed by labor law)
Severance	1 month salary per year of service

Working hours in China

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.

Overtime must be compensated in the following way:

For a regular workday: 150% of the standard hourly rate (also known as ‘time and a half’);
For a rest day: 200% of the standard hourly rate, or a day off (also known as ‘double time, or a day in lieu’);
For a statutory holiday: 300% of the standard hourly rate (also known as ‘triple time’).

Hire compliantly in China from 290 USD / month.

Quick, compliant hiring in 12 hours—no subsidiary required.

Chinese national holidays 2023

Holiday Schedule in China [2023]

China has a range of national public holidays that are celebrated annually. In 2023 these holidays are:

Date	Holiday name
1 Jan Sunday	New Year’s Day
21 Jan Saturday	Spring Festival Eve
22 Jan Sunday	Lunar New Year
23 Jan to 27 Jan	Spring Festival Golden Week holiday
8 Mar Wednesday	International Women’s Day
3 Apr to 4 Apr	Qing Ming Jie holiday (Tentative Date)
5 Apr Wednesday	Qing Ming Jie
1 May Monday	Labour Day
4 May Thursday	Youth Day
22 Jun Thursday	Dragon Boat Festival
23 Jun to 24 Jun	Dragon Boat Festival holiday (Tentative Date)
29 Sep Friday	Mid-Autumn Festival
1 Oct Sunday	National Day
2 Oct to 7 Oct	National Day Golden Week holiday

Paid time off

The amount of paid time off employees are eligible to receive is based on how long they have been employed at their current company:

Sick leave in China

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:

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.

Annual leave in China

As well as standard Chinese compensation laws, there are a host of guaranteed benefits and supplemental options available to employees. As China celebrates seven national holidays, the statutory minimum notes that employees be paid leave for each holiday. And while this is the statutory minimum, there are a number of employers that 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 employees that have been with a company less than a year, there are no mandatory vacation days.
For employees that have been with a company between one and 10 years, there are five vacation days each year.
Employees that have worked for a company between 10 and 20 years receive 10 days annual vacation.
If an employee has been with an organization for at least 20 years, they are entitled to 15 days vacation each year.

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.

hassle-free chinese compensation & benefits

Compensation & Bemefits

China compensation laws

The minimum wage in China varies greatly between provinces and cities. In Shenzhen, the minimum wage is 1,808 yuan per month. This is only slightly less than Shanghai, which has a monthly minimum wage of 1,820 yuan. However, in Guizhou, the monthly minimum drops significantly to 1,030 yuan.

13 month salary in China

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.

Social security for Chinese nationals

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 in China in 12h from
290 USD / month.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

Can a PEO in China hire both local and foreign nationals to work in China?

A China PEO can hire employees of all nationality as long as their profiles match with the requirements established by the Chinese immigration authorities.

Can a China Employer of Record hire staff on my behalf in different cities in China?

Horizons can hire your staff everywhere in China through its PEO network of local entities specialized in HR management services.

What responsibilities do I have regarding my employee(s) in China?

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.

Do I have to pay taxes or contribute to social charges in China?

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.

How many employees can I hire globally through a PEO partner?

The number of employees dispatched in China is not limited and can vary according to the ongoing projects and business development.

Can I pay my employees working in China directly from abroad?

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.

What is the cost of termination of an employee in China?

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.

Do my staff need an office space?

In China, work from home is authorized as long as the employer gives its approval.

Can Horizons also recruit staff in China, to be hired under a PEO solution?

Horizons provide China recruitment services and PEO services, available for both foreign and local professionals from any background.

How can I change the terms and conditions of my staff contracts in China?

Horizons can implement any changes directly with the employee on your behalf.

How are salaries structured in China?

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.

How do I calculate the total payroll cost of hiring in China?

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.

How many public holidays are there in China?

Paid public holidays in China are:

New Year’s day (1 day paid leave)
Chinese New Year (3 days paid leave)
Qing Ming Festival (1 day paid leave)
Labor Day (1 day paid leave)
Dragon Boat Festival (1 day paid leave)
Mid-Autumn Festival (1 day paid leave)
China National Holiday (3 days paid leave).

Special rates apply if organizations require staff to work on public holidays.

hire in china

China PEO & Employer of Record

stay compliant with chinese labor laws

Hire in China

Must-knows when hiring with Horizons EOR in China

stay compliant with China labor laws

Labor Laws

Employment contract types

Fixed-term

Indefinite

Working hours in China

Hire compliantly in China from 290 USD / month.

Chinese national holidays 2023

Paid time off

Sick leave in China

Annual leave in China

hassle-free chinese compensation & benefits

Compensation & Bemefits

China compensation laws

13 month salary in China

Social security for Chinese nationals

Hire in China in 12h from 290 USD / month.

FAQs

Hire Anywhere. Today.

China PEO &
Employer of Record

Hire in China in 12h from
290 USD / month.