Home > Business Manager > Human Resources and Payroll Management in China

Human Resources and Payroll Management in China

Updated:2018-6-19 14:41:56    Source:www.tannet-group.comViews:148

Human resources and payroll management in China is essential for foreign investors who want to establish or are already running foreign-invested entities in China. In China, there are a wide range of government institutions involved in HR processes, and while key laws are drafted by the central government and numerous bylaws and regulations are instituted at the local level.

Tannet offers customized and cost effective end-to-end payroll management solutions for foreign investors or start-ups all over Mainland China, Hong Kong or Taiwan. Our competent and reliable team of qualified payroll professionals ensure hassle-free and uninterrupted operations. The following are some of the tips for your to handle the fundamentals of employing staff in China.

1. Mandatory written contracts
All employees must be given a written contract within one month of hiring; otherwise, the employee is entitled to double salary.

2. Probation period
The range of legitimate grounds for dismissing an employee is considerably wider during his or her probation period. The employer may also pay only 80 percent of the employee’s contractual salary during this time.

3. Regional variation
National laws are often intentionally broad and vague, leaving a lot of room for local interpretation or additional legislation. Regulations and practices differ per city on issues such as minimum wage, work visa policy, social security contributions, and maternity leave.

4. Representative offices
The simplest of foreign investment vehicles in China, the representative office (RO) is not permitted to directly hire staff in China; instead, they need to use dispatch agencies, the agencies must hold a government issued special license that allow them to hire employees on behalf of their clients.

5. No at-will termination
Terminating employees in China is both difficult and expensive. Employees may resign with 30 days’ notice, but for employers, there are limited grounds for terminating an employee before his or her contract has come to an end.

6. Individual income tax (IIT)
Individuals working in China, both Chinese and foreign, are required to pay individual income tax (IIT) on their earnings. Chinese citizens must pay IIT on all income sourced both domestically and overseas (unless stipulated otherwise in a tax treaty), while in most cases foreigners are only required to pay IIT on income derived in China. In addition to IIT, employers and employees in China generally must contribute social insurance payments.

Contact Us
If you have further enquire, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling  Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu , Shenzhen, China.

Previous:China Employment Contract: What You Need to Know     Next:Personnel Management Solutions