Expand into China without first setting up a legal entity in the country. Whether relocating an existing employee or making a new hire, our professional & complete PEO employment services provide an ideal first step for your market expansion into China.
Acclime is a professional employer organisation (PEO) and can act as the official employer of record (EOR) for your staff in China. We provide comprehensive and competent PEO services, allowing you to outsource employment until you are ready for the next step.
From our services proposal to legal documents or monthly payroll reports, everything is fully transparent with no hidden fees, allowing you to expand into China with confidence.
You will have a dedicated account manager for all your projects. A single local contact for simpler, more streamlined communication with Acclime.
Continue your expansion journey in China and stay fully compliant with local regulations with our complete corporate services & advisory solution.
Professional employment organisation (or PEO) is an organisation specialised in handling HR outsourcing requests for their clients. PEO providers are usually offering three core main services:
Contractor & freelancer management services
Employer of record (or EoR) service
Payroll outsourcing service
Acclime is providing employer of record service by becoming the legal employer (of record) of your employee in the targeted country of expansion. With EoR service, entering new markets without having to setup an entity is possible.
We can also support you by providing company formation service during your expansion journey in China.
Employer of record (or EoR) service is ideal when entering a new market. EoR service’s main benefits are:
Fast entry – you can enter a new market as fast as in 48 hours and get your team compliantly onboarded in our in-house local entities across the APAC region
Low cost – low setup cost and recurring costs compared to traditional company formation service
Limited liability – Acclime will become the legal employer of your employee taking away all the liability from your end
Exit alternative – Acclime can support with exit strategy with company deregistration, EoR is also a good alternative allowing you to maintain staffs even after closing your entity.
Review our custom made PEO proposal for your expansion project in China.
Review, fill in and sign our onboarding documents. Welcome to Acclime!
Acclime will send the first invoice for the project deposit and the first payroll month to onboard your employee.
We will contact your employee to collect the onboarding information to draft the employment agreement.
Acclime will draft the employment agreement and submit it to your employee for review & signature.
After signing the employment agreement, your employee is compliantly onboarded on our local payroll.
Acclime will send you the first invoice for your employee’s monthly payroll.
Acclime will support you and your teams with all HR-related queries.
Start your journey in China risk-free without having to set up your own entity.
When ready, we will support you in forming a local entity and transferring your EoR employees.
Take compliance off your mind and confidently outsource all accounting & tax matters to us.
Pay your employees easier & faster without the overhead of having your dedicated HR team.
Contract types in China
Fixed-term – contract with maximum duration of 36 months, it can be renewed twice (recommended by Acclime)
Open ended – no maximum duration, open ended contract
Probation in China
Up to six months’ probation for a fixed term contract of 36 months
Notice period in China
30 days notices period or a 1-month payment in-lieu of notice (PILON)
Leaves in China
Paid leaves: minimum of five days, standard practice 10 to 15 days.
Under 1 year of employment: no leave entitlement
1-10 years of employment: 5 days of paid leave annually
10-20 years of employment: 10 days of paid leave annually
20+ years of employment: 15 days of paid leave annually
Based on the number of consecutive years of work of the employee (<2 years to > 8 years), ranging from 60% to 100% coverage from the employer
13th month & allowances in China
13th month bonus is a standard practice in mainland China
No allowances are required in China
There are five main pillars for the mandatory social contributions in China:
The proportion of pension contributions is the individual is responsible for paying as 8% and the employer is responsible for 20%. Employees should participate in the basic pension insurance, and the employer and the employee should jointly pay the basic pension insurance premiums.
Part of medical expense costs in the event of illness or injury is covered by the medical insurance to which both employees and employers must contribute. Again, employees contribute based on their wages (up to 2%) which are deposited into their medical account.
Unemployment insurance benefits are the basic living expenses paid by the unemployment insurance agency to eligible unemployed persons. Urban enterprises and institutions pay unemployment insurance premiums at 2% of their total wages, and employees of urban enterprises and institutions pay unemployment insurance premiums at 1% of their wages.
On-job injury (工伤保险)
The contribution rate is between 0.1% and 2% of an employee’s gross salary. In the event of a work-related injury, the fund covers associated costs.
Pooling system to support when buying properties. Contribution at the same rate by both the employer and the employee:
5%-7% standard practice (Shanghai, Suzhou, Hangzhou)
5%-12% practice (Beijing, Guangzhou, Shenzhen)
Yes, Acclime can hire expatriates in China for your expansion project. Please note that the immigration process for expatriates already in China and holding a valid work permit and residence permit can take up to six weeks. For expatriates outside of China, the process can take up to 12 weeks.