As of March 2024, the estimated population of China is 1.4 billion.
The currency in China is the Renminbi Yuan (RMB). The currency symbol is ¥.
The Labor Contract Law of China defines a permanent employment relationship as one established by a contract without a fixed term. Employers and employees do not indicate an end date in this type of labor agreement. A permanent employment contract is generally required in the following instances unless the employee proposes otherwise: The employee has worked for the employer for ten consecutive years. The fixed-term labor contract concluded 2 times consecutively.
A written labor agreement is mandatory and must be formed at the establishment of an employment relationship, which is the date when the employee begins working. If the employment relationship is already established, the written contract must be formed within 1 month of the date when the employee starts to work. Both the employer and the employee must have one copy of the labor contract written in a language that both parties understand. The written agreement must include the following information: The employer's name, domicile, legal representative, or major person-in-charge The employee's name, domicile, and ID card number or another valid identity document Term of the contract Job description and place of work Working hours, break time, and leave Remuneration Social security Labor protection, working conditions, and protection against occupational hazards Liability for breach of contract Effective September 1, 2025, employment agreement terms to waive social insurance contributions are invalid. Workers who are not enrolled in social insurance are entitled to unilaterally terminate their contracts and claim severance. Employers who have participated in an arrangement not to pay social insurance contributions are required to pay all contributions due retroactively and may recover the employee's share following the completion of retroactive payments.
Labor dispatch agencies (or employment service agencies) can be utilized to staff short-term work projects. The workers, in this case, sign employment contracts with the employment service agencies (rather than the company that they will be working for de facto). In this regard, the company hiring the employment service agency workers is protected from serious liabilities. Agencies may only be used for temporary work (less than six months), auxiliary work (related to non-core business), or substitute work (temporary replacement of employees on leave).
Per the Labor Contract Law, an employer can only impose one probation period on an employee for the same contract. Probationary periods range from 1 to 6 months, depending on the length of the employment contract. A probation period may not be established for a labor contract that ends at the completion of a specific task or a fixed term of fewer than 3 months.
Under the Labor Law of China, employees cannot work more than 8 hours a day and 40 hours a week, on average. Employers can extend working hours by 1 hour per day after consulting with the relevant trade union and employees due to production needs or business operation requirements. However, extended hours may reach up to 3 hours per day if the extension is needed for particular reasons, and the health of employees is guaranteed. The total extension in a month cannot go over 36 hours. Effective September 1, 2025, the Sichuan Provincial Department of Human Resources and Social Security (HRSS) has formalized and clarified how companies must apply for and get approval to implement special working-hour systems, including flexible hours, and comprehensive calculation work-hour systems where hours are averaged over a longer period (month/quarter/year) instead of daily or weekly. These systems permit deviation from the standard 8 hours/day and 40 hours/week requirement, when justified by the nature of work and approved by authorities. HRSS is responsible for granting administrative licenses to employers for special working hour systems. Employers are required to apply to the provincial HRSS for entities registered at the provincial level, city HRSS for city level registration, and country HRSS for country or district level. These rules also apply to foreign enterprises and international organizations in Sichuan.
2026
2027
Under Chinese law, employees become entitled to paid annual leave after working continuously for 12 months, regardless of whether they worked in the same company or at different companies. After the first 12 months, the employee can use the leave as it accrues. Annual leave pay is the same as wages paid for employees' regular work. The duration of annual leave depends on the length of service: 1 to 10 years of service - 5 days of leave 10 to 20 years of service - 10 days of leave Over 20 years of service - 15 days of leave
Employees who suffer a work-related sickness or injury receive up to 12 months' sick leave with full pay. For non-work-related disease or injury, employees are entitled to leave ranging from 3 to 24 months, depending on tenure. Employers' sick pay obligations vary region-wise. The employee can take sick leave as needed and does not need to use the entitlement all at once. If employees are unable to perform work and must receive medical treatment due to illness or non-work-related injuries, employers cannot revoke the labor contract concluded with the worker during the medical treatment period.
According to China’s Special Rules on the Labor Protection of Female Employees, pregnant female employees are entitled to a minimum of 98 days of maternity leave, including 15 days of leave before childbirth. Many provincial governments have increased this minimum requirement by 60 to 90 days in accordance with the new Population and Family Planning regulations in China that do away with birth restrictions, allowing couples to have up to three children. Tibetan employees residing in Tibet are allowed up to 1 year of maternity leave. Maternity leave in China is paid. For female employees who have participated in maternity insurance, the subsidy is paid by the maternity insurance fund. If employees have not participated in maternity insurance, the subsidy is paid by employers based on the wages prior to maternity leave.
Although China’s Labor Law does not stipulate statutory entitlement to paternity leave on a national level, it is provided by all municipal or provincial governments. Paternity leave ranges from 7 to 30 days, depending on the jurisdiction. Fathers are entitled to be paid their regular earnings while on paternity leave. Employees are entitled to paternity leave for the first and second childbirth. There is no legal requirement as to when the paternity leave must be taken or whether it can be broken up. Since China does not recognize same-sex marriages or civil unions, paternity leave benefits are available only to heterosexual couples.
In China, employees can unilaterally terminate their employment contract by giving a written notice 30 days in advance (3 days in advance during the probationary period). Similarly, an employer can unilaterally terminate an employment contract by giving a written notice 30 days in advance or providing 1 month’s salary in lieu of notice if the employer and employee meet certain prescribed criteria in the labor code.
Severance pay is based on the number of years an employee has worked for the employer: 1 month's wages for every year of service. For employees who have worked for more than 6 months but less than 1 year, the severance pay is calculated based on 1 year. For the duration of employment under 6 months, the severance pay is half of a monthly salary. The maximum period for which severance is paid to it shall not exceed 12 years. If the monthly salary of the laborer is higher than 3 times the local average monthly salary of the place where the employing unit is located, the economic compensation paid to them is paid according to the amount of 3 times the local average monthly salary.
Based on the Social Insurance Law of China, all employees are entitled to the basic old-age insurance, contributed to by both the employer and the employee. The employer contributions to social insurance in China vary from province to province. The old-age pension consists of two parts: social pooling pensions for workers and individual account pensions. The social pooling pension is based on the average local salary in the previous year and the average monthly salary of the individual. It is calculated as 1% of the average income of the insured for each year of contribution. Individual account pensions are calculated based on the average life expectancy of a person and the person’s individual contribution. A third individual account pension is now offered which allows a maximum annual contribution of RMB 12,000.
The Social Insurance Law of China entitles the survivors to receive bereavement allowances if a member of the basic old-age insurance dies from illnesses or non work related causes. The expenses will be provided by the basic old-age insurance fund. The amount will be determined based on the local regulations. If a retired person who used to work in the state organizations dies during military service, the survivors can receive a one time bereavement allowance. The amount is 20 times the per capita disposable income of all residents in the previous year plus the basic salary or basic retirement payment of 40 months.
In China, employers are required to enroll their employees in the work injury insurance system, a part of the country's social insurance system. Only the employer will make work injury contributions. The rates of contributions are determined by the State and depend on the risk levels associated with the industries. Effective August 1, 2025, China has added Occupational Musculoskeletal Disorders (MSDs) and Occupational Mental and Behavioral Disorders to the Occupational Disease Classification and Catalogue, and employees are eligible for medical benefits for these. If the employee has met the eligibility requirements for old-age pensions, he or she can switch from the injury benefit to the old-age pensions. If a work injury accident occurs, and the employer does not make work injury contributions as required by law, employers are required to pay work injury benefits. The following benefits are paid in case of work injury: One-time benefits - first-level disability is 27 months' personal salary, second-level disability is 25 months' personal salary, third-level disability is 23 months' personal salary, fourth-level disability is 21 months' personal salary, fifth-level disability is 18 months' personal salary, and sixth-level disability is 16 months' personal salary Monthly allowance - first-level disability is 90% of salary, second-level disability is 85% of salary, third-level disability is 80% of salary, fourth-level disability is 75% of salary, fifth-level disability is 70% of the wages of the person, and sixth-level disability is 60% of the wages of the person
Individual income tax liability is based on: The source of an individual’s income Whether an individual’s domicile is in China for tax purposes The length of their stay in the country Foreign nationals and residents of Hong Kong, Macau, and Taiwan, normally considered non-China domiciled individuals, are taxed in accordance with their physical presence in China. Expatriates whose presence has amounted to 90 days consecutively or cumulatively over the year of assessment, or 183 days consecutively or cumulatively over the tax period, are required to report their salaries from domestic or foreign employers. Wages or salaries obtained when working outside China are not subject to individual income tax unless they are members of senior management of domestic corporations in China. The progressive tax rates range from 3% - 45% of gross income. A flat rate of 20% is applied on the remaining categories of income, including incidental income, rental income, interest income, dividends, and capital gains. Citizens from countries with double taxation agreements with China are not subject to tax: If employed by companies outside China If their cumulative residence does not exceed 183 days in a calendar year If their salaries are paid by companies abroad
Foreign nationals from most countries require a visa to enter and stay in China. Travelers from Singapore, Brunei, and Japan are allowed visa-free entry for up to 15 days for tourism or personal visits. If a stay goes beyond the duration of a visa, an extension is required. A renewal application must be submitted at least seven days before the expiration of the current visa. It must include a valid passport, current visa as well as the reason for the extension. The length of the extension depends on the type of visa requested (for example, multiple entry visas may not be extended).
According to the State Council of China, visa categories include Tourist (L), Business (F/M), Student (X), Resident (D), Talent (R), Private Visit (S), Family Reunion (Q), Transit (G), Crew (C), and Journalist (J-1, J-2).
Foreign employees require an employment license (submitted by employer) before obtaining a work permit. Applications for work permits may be obtained at embassies and consulates and must meet the following requirements: Z visas obtained prior to arrival Applications need to be sponsored and submitted by a locally registered company in China. Expats need to live and work in the same location as their sponsoring company. Medical examinations from authorized hospitals (foreign or domestic) Beijing requires foreign employees to have a non-criminal background check approved by Chinese authorities. In Shanghai, the medical examination may be obtained after receiving the Z visa and work permit. Employees apply for a work permit at their local labor bureau after arriving in China. Work permits usually have a term of 1 year and never exceed five years unless certain conditions are satisfied. If the duration of a work permit exceeds 1 year, the employer must apply to the government for an annual check of the work permit at least 30 days before the term reaches a full year.
