China Payroll & Tax Solution.
Customize and outsource your employees’ payroll, tax, and social benefits contributions.
Choose Your China Payroll Solutions
JSC provides different payroll solution for foreign companies that have already formed a legal entity in China as well as those that have not yet to do so.
Benefits of China Payroll Solution.
China Payroll & Tax Solution Package.
Full Employment, Payroll & HR Service Support
How China Payroll & Tax Works.
- Initial Setup
JSC China payroll and accounting experts will assist client in setting up the company’s tax, social security, and housing funds accounts, as well as uploading all payroll data into the payroll system.
- Monthly & Yearly Payroll, Tax Processing
After the initial setup complete, JSC will follow the local policies and regulations to calculate and declare employees’ payroll, individual income tax and mandatory social insurances and housing fund.
Frequently asked questions for payroll and hiring employees in China.
No, you do not need.
If you don’t have a company in China, you can hire employees through PEO service through the employment agency in China.
Read more on How to Hire Employees In China Without Legal Entity?
a) Hire employee through the PEO/employment service.
If you don’t have a legal entity in China, this is the only compliance way to have employee working for you in China.
b) Hire employee under WFOE.
If you already set up a WFOE in China, you can sign the labor contract with employees directly. You can either choose to handle their payroll land benefits yourself, or you can choose to outsource.
c) Hire employee under representative office (Ro)
Representative office in China is not allowed to hire employees directly. The only compliance way is hire employees through labor dispatch agency under PEO service
Read more on Top Tips For Hiring Employees in China [Complete Hiring Practices]
PEO refers to a professional employment organization, in China it’s also called employee outsourcing, labor dispatch. Foreign companies can hire staff in China through a PEO agency without setting up a legal entity in China.
For hiring employees in China, you need to know the 5 social insurance and 1 housing fund is mandatory benefits.
5 Social Insurances: Pension, Medical Insurance, Unemployment Insurance, Work-Related Injury Insurance, Maternity Insurance
1 Housing Fund
Read more on Complete Guide on China Social Security System.
Gross salary: fixed base salary
Flexible salary: performance bonus, commission, allowances
13 Month salary/ Annual bonus: common in China
Mandatory benefits: 5 social insurances and 1 housing fund
Supplementary health insurance: not mandatory, but very common among foreign employers
Annual leaves Paid sick leaves
Read more on Employment Contract in China.
Your monthly employment cost consist of:
+Employee monthly net salary
+Employer contribution of mandatory benefits
+Employee contribution of mandatory benefits
+Individual income tax
+Other benefits offered.
Read more on How to Calculate Employee Salary in China? [China Payroll Guide]
Company cannot give the days lower than the below policy:
1=<Employee working years<10, annual leave >=5
10=<Employee working years<20, annual leave >=10
Employee working years>=20, annual leave >=15
Read more on Complete Guide on Annual Leave Policies in China.
Below are the public holidays in China and is paid holidays. The exact date will be announced by the government at the end of December last year.
New Year’s day: 1 day
Spring Festival/Chinese New Year: 3 days
Qing Ming Festival: 1 day
Labor Day: 1 day
Dragon Boat Festival: 1 day
Mid-Autumn Festival: 1 day
China National Holiday: 3 days
Employers shall pay overtime payment if they require employees to working during the public holidays.
Read more on Public Holidays and Annual Leaves in China.
Yes. The probation period shall be set based on the employment contract term.
3 months <Employment contract term <1 year, probation period can be a maximum of 1 month.
1 year<Employment contract< 3 years, probation period can be a maximum of 2 months.
Employment contract term is 3 years or more, the probation can be a maximum of 6 months.
Please kindly note that employees’ salary during probation period cannot be lower than 80% of the salary after the probation period.
Severance payment in China is based on the number of years employee has worked for the company.
Each full year employee worked for your company, one month salary shall be paid as severance payment.
For the working periods that are less than 6 months, half month salary shall be paid.
If employee’s monthly salary is higher than 3 times local average monthly salary, each year of the severance payment compensated shall be 3 times local average monthly salary.
If employees are in the probationary period, both employee and employer shall give 3 days as notice period for termination.
After probationary period, both employee and employer shall give 3o days as notice period for termination.
If employer need immediate termination, employer shall compensate one month salary.