Payroll and HR in China
The International HR & Payroll Company
That Speaks Your Language
At IRIS FMP, we’re here to simplify Chinese payroll and HR. As a recognized global payroll and HR specialist with 88 in-country teams, we have the expertise to ensure your overseas employees are paid on time, every time.
Navigating the complexities that arise with payroll and HR in China is no easy feat, and compliance is always a top priority for businesses during any global expansion. With differing laws, cultures and regulations, it can feel overwhelming to stay on top of. Fortunately, our expert teams are here to help. We offer:
We take away the complexities of international payroll and manage everything – from local pay to benefits. Your growing workforce will be paid accurately, on-time, every time.
Chinese Employment Law Compliance
We will help you to seamlessly and compliantly onboard your organization’s people. As an in-country specialist, we can help with contracts, policies, handbooks and more.
Jump to section
- Asia (Eastern Asia)
- Calling Code
- Chinese yuan (CNY)
- Main Language
- Chinese(中文 (Zhōngwén))
- Other Business Languages
- Mandarin & Cantonese (main languages)
- Tax Year Start
- 1st January
- Tax Year Start
- 31st December
Details correct at time of publication. You should not rely on these details without first seeking professional international advice.
A trusted advisor for global expansion
We support businesses in 135 countries worldwide to reach their expansion goals.
Global Expansion in China
As the fastest growing emerging market, China offers vast prospects to businesses looking to expand overseas. With an entrepreneurial economy, China is a great place to do business thanks to its low costs and population of 1.3 billion people.
China is well recognized as the manufacturing base of the world. Today, international businesses are welcomed with open arms in major sectors including energy, technology, healthcare and finance.
Despite the endless opportunities international expansion brings, we understand it isn’t always easy – especially with language barriers getting in the way. Fortunately, IRIS FMP can help make your transition overseas easier. We’re experts in Chinese payroll and HR and can help you maintain compliance with Chinese regulations and timelines.
In China, the following reports must be submitted to strict deadlines.
- VAT Returns
- Corporate Income Tax Return
Payroll in China
What tax considerations are there?
China uses a progressive tax system for individual income tax (IIT) from 3% to 45%. Residents of China are subject to income tax on worldwide income by category. These nine categories are: employment income (i.e. wages and salaries), remuneration for labour services, author’s remuneration, royalties, business income, interest, dividends, and profit distribution, rental income, income from transfer of property and incidental income. Non-residents are taxed separately by category on a monthly/transaction basis.
There is also corporate income tax (CIT) to consider, which is deducted at a standard rate of 25%. This can be reduced to 15% if a business is within an industry encouraged by the Chinese government.
HR in China
What are the regular working hours in China?
The Chinese government enforces business hours of 44 hours a week under the Labor Law of People’s Republic of China, for no more than 8 hours a day.
Regular working hours are Monday to Friday, usually from 08:00 – 17:00, 08:30 – 17:30 or 9:00 – 18:00. Saturday and Sunday are usually days off.
Employee termination in China can be a very lengthy and complex process, no matter how serious the reason for letting an employee go. This is because Chinese employment termination law prioritizes job security above all else. These termination law guidelines must be adhered to by employers.
There is also regional labor administration to consider, as there may be additional guidelines and rules which vary considerably between jurisdictions.
Discover more about international payroll
To find out more about international payroll, download our international payroll guide today and discover more key considerations.
IRIS FMP’s Chinese Payroll and HR Solutions
No matter if you’re seeking payroll and HR services in Shanghai, Beijing or Chongqing, IRIS FMP have the expertise to guide and assist you with Chinese payroll and HR. We can help with HR administration, labor law consultation, compliance and of course, payroll. Our Chinese payroll and HR services include but are not restricted to:
- Employment Contracts
- Payroll Processing
- Handling of payments (salaries)
- Annual declarations (lodging, apprenticeship & training taxes for concerned companies)
- Relations with social bodies
- Regulatory Compliance
- Tax and Labor Law Consulting
- Assisting in payroll audit (or payroll department audit)
- Handling of confidential payroll
- Assistance in company restructuring plan
- Assistance in implementation of procedures
- Assistance with start-up (in link with lawyers)
Maintain Compliance with Your Chinese Payroll & HR
Let’s start expanding. IRIS FMP’s experts are ready to help take the stress out of Chinese payroll and HR. We’ll make sure your business remains compliant during the process, and keep disruption to a minimum.