Employer of Record

Hire in China with an Employer of Record

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.

Illustration representing hiring an employee in China through PIO's Employer of Record service

What to plan for

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.

Source:Individual Income Tax Law of the People's Republic of China

Labour contracts

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.

Source:Labor Contract Law of the People's Republic of China

Social insurance & leave — confirmed by work city

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.

Source:Social Insurance Law of the People's Republic of ChinaRegulation on Paid Annual Leave for Employees (State Council Order No. 514)

Termination & closeout — confirmed by work city

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.

Source:Labor Contract Law of the People's Republic of China

What PIO helps coordinate / What you provide

What PIO helps coordinate

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.

  1. 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.

  2. Step 2

    We coordinate onboarding

    Once confirmed, we help coordinate the information, contract and payroll setup needed within your arrangement.

  3. 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.

Source:Individual Income Tax Law of the People's Republic of China

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.

Source:Social Insurance Law of the People's Republic of China

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.

Source:Labor Contract Law of the People's Republic of China

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.

Source:Labor Contract Law of the People's Republic of China

What do we need to provide as the employer?

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.

Ready to hire in China?

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.