Yue (Cantonese), Wu (Shanghainese) and Minbei (Fuzhou)

UTC +08:00

Undoubtedly, payroll is a critical process for any organization. The pay cycle in China refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

Employees in China are paid on a monthly basis.

There are no provisions in the law regarding 13th salaries.

The national minimum wage in China differs per region. The most common minimum wages (Effective May 1, 2024) are:  

Hunan Province as of September 1, 2024.

• First Level: 2100 
• Second Level: 1900
• Third Level: 1,700 

• First Level: 21 
• Second Level: 19 
• Third Level: 17 

Jilin Province as of October 1, 2024.

• First Level: 2120 
• Second Level: 1920
• Third Level: 1,780 

• First Level: 21 
• Second Level: 19.5 
• Third Level: 18

Yunan Province as of October 1, 2024.

• First Level: 2070 
• Second Level: 1920
• Third Level: 1,770 

• First Level: 20 
• Second Level: 19
• Third Level: 18

Overtime is limited to one hour per day. However, in exceptional circumstances, it can be up to 3 hours but limited to 36 hours per month. Overtime pay is 150% per hour for overtime during workdays, 200% per hour on rest days, and 300% per hour on official public holidays.

Employees under flexible working hours are generally not entitled to overtime payment, which requires approval from the labor bureau.

Records may be held either physically or electronically.

Tax records in China's territories generally must be kept for five years; however, the China Capital Territory requires that they be kept for seven years.

There are seven public holidays. However, some regions have additional holidays.

China's national holidays for which paid leave is required are as follows:

• Jan 1: New Year
• Jan 22: Chinese New Year
• Jan 22: Lunar New Year
• Apr 5: Qingming Festival
• May 1: Labor Day
• Jun 22: Dragon boat festival
• Sept 29: Mid-Autumn Festival
• Oct 1: National Day

Chinese labor law defines sick leave as a period off from work given to employees who suffer from an illness or a non-work-related injury. After being diagnosed and given the appropriate medical certificate, employees fall under the special jurisdiction of employment stability. It protects them from termination during treatment and orders that they be paid a reduced sick leave wage.

In China, employees are entitled to a period of medical treatment varying from 3 to 24 months for illness or non-work-related injuries. The period varies depending on cumulative working years since the employees started to work and the length of their service in their current company.

Female employees are entitled to maternity leave of at least 98 days, beginning 15 days before the expected delivery date. Maternity leave is extended by 15 days if a woman undergoes difficult labor and delivery. In cases of multiple births, women get an additional 15-day period of maternity leave for each additional child. If a woman gives birth to her first child at 24 or older, she is entitled to additional maternity leave, which varies depending on locality.

Paternity leave is granted to the father for three to 30 days, depending on the locality.

Parental leave includes maternity and paternity leave and leaves for when a child is adopted. An employee must have completed at least 12 months of employment to be eligible. Parental leave is unpaid leave that lasts for 12 months, and it is possible to request an additional 12 months from the employer.

The employees in Shanghai are only eligible to apply for childcare leave for a child under the age of 3 years old, and the eligible leave for each child is five days. Employees should receive regular pay during parental leave, which does not include year-end bonuses or salary payments for special circumstances.

Marriage Leave: Each city follows its laws, which vary between 3-10 days. In Beijing and Shanghai, employees are entitled to 10 days' marriage leave.

Bereavement Leave: Varies between cities and is between 1-3 days.

In cases where notice is required (i.e., termination is not immediate), the employer must either provide 30-days' prior notice to the employee or one month's salary in lieu of notice.

If the employer fails to give notice, the employee may request payment in lieu of notice. One month's salary is payable as the notice period is 30 days.

Severance pay varies based on the reason for termination, but in general, severance is one month's salary for each year of employment, capped at three times the minimum wage, and cannot exceed 12 months.

Any foreign worker wishing to engage in business in China must have a work visa. The employer must sponsor the visa and be a recognized business that is allowed to employ foreign workers. The employee must be a recognized foreign authority in the industry in which they will work.

Male candidates for work visas in China must be between 24 and 65, while female applicants must be between 24 and 55. A government-issued employment permit and visa notice letter, which the employee must sign and return to the Chinese government, must be sent by the employer to the employee. After arrival, a Z visa is only suitable for 30 days. The employer must apply for a temporary residence permit on the worker's behalf during this period. The Z visa can be obtained for up to 50 years and 90 days.

There is no legal guidance on checks an employer may carry out about the background and health of job applicants.

Typically, employers may conduct background checks on a job applicant during the hiring process. However, there are some practical limits on how far an employer can go. For example, the employer should not check on family background, medical history, or circumstances involving other sensitive personal information.