China sets baseline national rules for individual income tax withholding, employment contracts, social insurance and paid leave, while the actual registration steps, contribution parameters and administration follow the employee's work city. Share the role, the work city and your intended start date, and PIO confirms the available arrangement for that specific hire, then coordinates the contract, payroll and leave around it.
Practical points to line up before you hire in China.
Individual income tax withholding
China's Individual Income Tax Law requires monthly withholding on employee wages, with annual reconciliation. Payroll should be configured for accurate IIT withholding and defensible records from the first cycle.
A written labour contract must be signed when the employment relationship begins. If it isn't signed by then, national law requires it to be concluded within one month from the employee's first day of work — the actual statutory deadline.
National law sets the baseline rules for social-insurance participation and paid annual leave — for example, statutory annual leave scales from 5 to 15 days a year depending on the employee's cumulative years of work. What varies by the employee's actual work city is the registration process, contribution parameters and day-to-day administration.
Ending employment in China follows the termination procedures set out in national labour-contract law, while the supporting documentation practice and administrative closeout steps can vary by city. We help you confirm the applicable process for the employee's work location and keep payroll and social-insurance closeout aligned.
Once your hire is confirmed, here's what we help you coordinate.
Confirming country availability and the arrangement for your hire
Coordinating the information and documents needed for onboarding
Confirming how contract, payroll and statutory responsibilities are handled in your arrangement
Explaining the process for changes, leave and offboarding
What you provide
You stay in control of the decisions that are yours to make.
The role, compensation and any company-specific policies
Final approval on the offer and any changes to it
A point of contact for escalations during employment
How it works
A straightforward path from sign-up to your employee's first day.
Step 1
Tell us about the hire
Share the role, the work location and your target start date, and we'll confirm the available arrangement for that hire.
Step 2
We coordinate onboarding
Once confirmed, we help coordinate the information, contract and payroll setup needed within your arrangement.
Step 3
Your employee starts
You manage the day-to-day relationship; we help coordinate the recurring administration within your arrangement.
Frequently asked questions
Can I use PIO to start an EOR hire in China?
Yes — share the role, the employee's work city and your intended start date, and we confirm the available arrangement for that specific hire before onboarding begins.
How is individual income tax withheld for employees in China?
China's Individual Income Tax Law requires monthly withholding on employee wages, with an annual reconciliation that true-ups the amount withheld across the year. Payroll needs to be configured for accurate withholding and defensible records from the first pay cycle.
Does social insurance work the same way in every Chinese city?
The underlying obligation to participate in social insurance is set by national law and applies everywhere; what's administered locally — and can differ by the employee's work city — is the registration process, contribution parameters and paperwork. We confirm what applies for your hire's actual location rather than assuming one city's procedures apply nationwide.
Is a written employment contract required before someone starts work in China?
Not necessarily under national law. The written labour contract is required once the employment relationship begins; if it wasn't signed by then, the employer must conclude it within one month from the employee's actual first day of work. Signing earlier is common practice, not itself the statutory deadline.
What's involved in ending an employment relationship in China?
Ending employment in China follows the termination rules set out in national labour-contract law, while the supporting documentation practice and administrative closeout steps can vary by city. We help confirm the applicable process for the employee's work location and keep payroll and social-insurance closeout aligned with it.
You provide the role details, compensation, the employee's work city and any company-specific policies. We coordinate the local labour contract, onboarding paperwork and ongoing payroll administration around what you decide.
4 official sources
Practical guidance is grounded in these official references, but local law and public requirements can change and should be reconfirmed. Your PIO contract and quote govern only PIO's service scope, terms and fees.
Sign up to start an EOR hire in China. Share the role, the work location and your target start date, and we'll confirm the available arrangement — or book a demo first to talk it through with our team.