China PEO & employer of record (EoR) services.

1. 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

2. Probation in China

   • Up to six months’ probation for a fixed term contract of 36 months

3. Notice period in China

   • 30 days notices period or a 1-month payment in-lieu of notice (PILON)

4. 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

   • Sick leaves:

     • 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

5. 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:

1. Pension (养老保险)

   • 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.

2. Medical (基本医保)

   • 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.

3. Unemployment (失业保险)

   • 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.

4. 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.

5. Housing fund

   • 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.