Hire Employees in China Without an Entity
Plan an Employer of Record hire in China, including local employment administration, payroll coordination, employer-cost inputs, and work-authorization dependencies.
Chooses talent, role scope, compensation, and performance goals.
Handles local employment, payroll administration, and compliance operations.
Employment snapshot: China
What is an Employer of Record in China?
An Employer of Record in China hires employees locally through a registered employing entity so you can access Chinese talent without establishing your own company. You retain full control over role design and day-to-day management while Farlinko handles local employment compliance.
An EOR acts as the legal employer for tax and compliance purposes while you retain full control over day-to-day work, performance management, and business decisions.
What Farlinko covers
- Locally reviewed employment documentation
- Payroll and statutory filing coordination
- Employee onboarding and lifecycle administration
How hiring works in China
A structured onboarding sequence for hiring, finance, legal, and people teams.
Step 1 Define role, location, and compensation package
We align on salary structure, benefits expectations, work location, and any visa or work permit requirements before preparing local documentation.
Step 2 Complete onboarding and statutory registrations
We coordinate employee onboarding, social insurance and housing fund registrations, and work permit processing where applicable.
Step 3 Run monthly payroll and statutory contributions
Chinese payroll requires careful handling of social insurance, housing fund contributions, individual income tax, and statutory withholdings.
Step 4 Manage changes and terminations compliantly
We support compensation changes, leave administration, and termination processes under Chinese labor regulations.
Employer cost in China
Understanding total employment costs beyond base salary.
Key cost components
- Base salary
- Social insurance contributions (16-24%)
- Housing fund contributions (5-12%)
- Individual income tax withholding
- Work-related injury insurance
- Unemployment insurance
- Maternity insurance
- Annual bonus (13th month common)
Typical employer burden
Total employer cost depends on compensation, worker category, statutory contributions, benefits, insurance, location, and the employing model. Request a current breakdown rather than applying a generic percentage.
Contracts & payroll in China
Employment contracts
Chinese labor contracts must be in Chinese and include mandatory terms per Labor Contract Law. Written contracts are required for all employment relationships.
- Must be in Chinese language
- Include job description and workplace location
- Specify compensation and payment method
- Detail working hours and rest periods
- Include social insurance and benefits
- Specify probation period if applicable
Payroll administration
Chinese payroll requires monthly processing with social insurance, housing fund, and individual income tax calculations. Contributions vary by city.
- Monthly payroll processing
- Social insurance deductions and contributions
- Housing fund deductions and contributions
- Individual income tax withholding
- Annual bonus accrual and payment
- Year-end reconciliation and reporting
Leave & benefits in China
Statutory leave entitlements
- Sick leave: varies by local regulations
Benefits & social security
- Social insurance (pension, medical, unemployment, injury, maternity)
- Housing fund (mandatory in most cities)
- Heat allowance (northern regions in winter)
- Meal allowances or subsidies
- Transportation allowances
Termination & risk management
Termination requirements
Termination in China requires careful compliance with Labor Contract Law. Severance payments are required for termination without cause.
- Accrued annual leave payout
- Unused annual bonus proportional payment
- Social insurance continuation documentation
- Work permit cancellation for foreign employees
Compliance risks
Non-compliance with Chinese labor laws can result in significant penalties, back payments, and potential business restrictions.
- Improper social insurance registration and contributions
- Incorrect termination procedures and severance
- Work permit violations for foreign employees
- Tax withholding errors
- Housing fund non-compliance
Why choose Farlinko for China?
Expertise in Chinese Labor Contract Law and local employment practices.
Support for social insurance and housing fund registrations across provinces.
Guidance on work permit and visa requirements for foreign employees.
Local payroll administration with statutory contribution accuracy.
Bridge solution before establishing a WFOE for long-term presence.
FAQs: Hiring in China
Can we hire Chinese employees without a WFOE?
Yes, through an EOR arrangement. This allows you to hire employees legally without establishing your own Chinese legal entity.
Can EOR support work permits for foreign employees in China?
Yes, EOR providers can typically assist with work permit applications, though requirements vary by city and individual circumstances.
Blog links for China expansion planning
Official employment sources for China
Use these government and statutory-authority resources to confirm current employment, payroll, social-security, tax, and work-authorization requirements.
- Ministry of Human Resources and Social Security
- State Taxation Administration
- State Council policy portal
Reference links checked: 8 September 2026. Farlinko content is general operational information, not legal or tax advice. Confirm current requirements for the specific worker and engagement before issuing an offer.
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