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Public Holidays Calendar

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China 2022
Day Date Holiday Notes
Saturday Jan-1 New Year's Day
Monday Jan-3 Day off in lieu of New Year's Day Another day off must be given off in lieu
Monday Jan-31 Additional day for Spring Festival An additional day is given off to create a long weekend.
Tuesday Feb-1 Spring Festival
Wednesday Feb-2 Spring Festival
Thursday Feb-3 Spring Festival
Friday Feb-4 Spring Festival
Saturday Apr-2 Ching Ming Festival (Tomb Sweeping Day) Another day off must be given off in lieu.
Sunday Apr-3 Ching Ming Festival (Tomb Sweeping Day)
Monday Apr-4 Ching Ming Festival (Tomb Sweeping Day)
Tuesday Apr-5 Day in lieu of Ching Ming Festival An additional day is given off to create a long weekend.
Sunday May-1 International Labor Day Another day off must be given off in lieu.
Monday May-2 International Labor Day
Tuesday May-3 International Labor Day
Wednesday May-4 International Labor Day
Friday Jun-3 Dragon Boat Festival
Saturday Sep-10 Mid-Autumn Festival Another day off must be given off in lieu
Monday Sep-12 Mid-Autumn Festival
Saturday Oct-1 National Day This can be designated as a workday with another day off in lieu
Sunday Oct-2 National Day This can be designated as a workday with another day off in lieu
Monday Oct-3 National Day This can be designated as a workday with another day off in lieu
Tuesday Oct-4 National Day This can be designated as a workday with another day off in lieu
Wednesday Oct-5 National Day This can be designated as a workday with another day off in lieu
Thursday Oct-6 National Day This can be designated as a workday with another day off in lieu
Friday Oct-7 National Day This can be designated as a workday with another day off in lieu
China
Day Date Holiday Notes
China
Day Date Holiday Notes
China 2021
Day Date Holiday Notes
Friday Jan-1 New Year's Day
Saturday Jan-2 New Year's Day
Sunday Jan-3 New Year's Day
Thursday Feb-11 Spring Festival
Friday Feb-12 Spring Festival
Saturday Feb-13 Spring Festival
Sunday Feb-14 Spring Festival
Monday Feb-15 Spring Festival
Tuesday Feb-16 Spring Festival
Wednesday Feb-17 Spring Festival
Saturday Apr-3 Tomb Sweeping Day
Sunday Apr-4 Tomb Sweeping Day
Monday Apr-5 Tomb Sweeping Day
Saturday May-1 Labour Day
Sunday May-2 Labour Day
Monday May-3 Labour Day
Tuesday May-4 Labour Day
Wednesday May-5 Labour Day
Saturday Jun-12 Dragon Boat Festival
Sunday Jun-13 Dragon Boat Festival
Monday Jun-14 Dragon Boat Festival
Sunday Sep-19 Mid-Autumn Festival
Monday Sep-20 Mid-Autumn Festival
Tuesday Sep-21 Mid-Autumn Festival
Friday Oct-1 National Day
Saturday Oct-2 National Day
Sunday Oct-3 National Day
Monday Oct-4 National Day
Tuesday Oct-5 National Day
Wednesday Oct-6 National Day
Thursday Oct-7 National Day
Countrypedia

China
Payroll and Benefits Guide

Last updated: Feb 22, 2022
Currency
Chinese Yuan (CNY)
Payroll Frequency
Monthly
Employer Taxes
39.50% - 41.20%

Papaya Offers Complete Payroll, PEO and Contractor Management Services For China

Download PDF Version

Overview

Capital
Beijing
Currency
Chinese Yuan (CNY)
Date Format
yyyy/mm/dd
Fiscal Year
1 January- 31 December
Public holidays calendar

COVID-19

Beijing- Due to COVID19, the employer receives a 1.00% discount for the health insurance contribution.  Instead of contributing 10.80%, the contribution rate is 9.80%.  At the moment, there is no indication of when this will expire.

Contributions

Employer

Employer Payroll Contributions

Beijing:

Earnings Thresholds: (Lower 2,834 CNY) (Higher 21,258 CNY)

16.00%

Employer Pension (maximum monthly salary base, 28,221 CNY)

0.50%

Employer Unemployment Insurance (maximum monthly salary base, 28,221 CNY)

9.00%

Employer Medical Insurances (maximum monthly salary base, 28,221 CNY)

1.00%

Employer unemployment Insurance (maximum monthly salary base, 28,221 CNY)

0.20% to 1.90%

Employer work-related Injury Insurance (dependent upon type of work being carried out) (maximum monthly salary base, 28,221 CNY)

0.80%

Employer maternity Insurance (Maternity insurance has been merged into medical insurance in many cities (maximum monthly salary base, 28,221 CNY)

12.00%

Housing Fund (In some cities excess of 12% is allowed)

39.50% - 41.20% Total Employment Cost

Employee

Employee Payroll Contributions

Beijing:

Earnings Thresholds: (Lower 2,834 CNY) (Higher 21,258 CNY)

8.00%

Pension

0.50%

Unemployment Insurance

2.00%

Medical Insurance

12.00%

Housing Fund (In some cities excess of 12% is allowed)

22.50% Total Employee Cost

Employer

Employer Payroll Contributions

Shanghai:

Earnings Thresholds: (Lower 3,563 CNY) (Higher 17,817 CNY)

16.00%

Employer Pension (maximum monthly salary base, 34,188 CNY)

0.50%

Employer Unemployment Insurance (maximum monthly salary base, 34,188 CNY)

9.50%

Employer Medical Insurances (maximum monthly salary base, 34,188 CNY)

0.16% to 1.52%

Employer work-related Injury Insurance (dependent upon type of work being carried out) (maximum monthly salary base, 34,188 CNY)

1.00%

Employer maternity Insurance (Maternity insurance has been merged into medical insurance in many cities (maximum monthly salary base, 34,188 CNY)

7.00%

Housing Fund (In some cities excess of 12% is allowed)

34.16% - 35.52% Total Employment Cost

Employee

Employee Payroll Contributions

Shanghai :

Earnings Thresholds: (Lower 3,563 CNY) (Higher 17,817 CNY)

8.00%

Pension (monthly salary cap of RMB 34,188)

0.50%

Unemployment Insurance (monthly salary cap of RMB 34,188)

2.00%

Medical Insurance (monthly salary cap of RMB 34,188)

7.00%

Housing Fund (In some cities excess of 12% is allowed)

17.50% Total Employee Cost

Employee

Employee Income Tax

3.00%

Up to 36,000 CNY

10.00%

36,001 – 144,000 CNY

20.00%

144,001 – 300,000 CNY

25.00%

300,001 – 420,000 CNY

30.00%

420,001 – 660,000 CNY

35.00%

660,001 – 960,000 CNY

45.00%

960,001 CNY and above

Minimum Wage

General

The national minimum wage in China differs per region. The most common minimum wages are:  

  • Beijing 2,320 CNY 
  • Shanghai 2,590 CNY 
  • Shenzhen 2,200 CNY 

Payroll

Payroll Cycle

The payroll cycle in China is generally monthly, and payments are made on the last working day.

13th Salary

In China, it is customary to pay a “13th-month” or even “14th-month” salary during the month of the Lunar New Year or Spring Holiday. This will be stipulated within the employment contract.

Working Hours

General

Standard working hours within China are 8 hours per day and 40 hours per week. The maximum number of working hours per week is 45.

Overtime

All work above the standard weekly working hours is paid as overtime and regulated by employment contract/collective agreements. In general, no more than one hour of overtime a day is permitted except in exceptional circumstances.  Overtime can increase to 3 hours a day with a maximum for the month of 36 hours.

Overtime is paid at 150.00% of the standard salary rate for weekday work, increasing to 200.00% for weekends.

Working Week

Monday-Friday

Leave

Paid Time Off

Paid leave in China is set in the employment contract and is dependent upon the years of employment. Paid leave is in addition to all public holidays.

For an employee within the first year of employment, there is no entitlement for paid annual leave. However, after completing the first year up to the tenth year, the employee is entitled to 5 days of paid leave.  This increases to 10 days for employees within 10 to 20 years of service and a maximum of 15 days paid leave for employees who have completed 20 years’ service or more.

Public Holidays

There are 11 public holidays, however, some regions have additional holidays.

Working on public holidays is uncommon in China, but if an employee is required to work the overtime payment is generally paid at 300% of the hourly rate.  The hourly rate is calculated by using the monthly salary rate for the employee divided by 174 (average number of working hours in a month). 

Sick Days

Sick pay in China is outlined in the employment contract and depends on the years of employment, the actual amount of sick leave, and the provision of a professional medical certificate.  Some of the regulations regarding the calculation for sick pay are made at a local level, e.g., there are differences between Shanghai and Beijing.  However, in general, the process is as follows:

The amount of paid sick leave entitlement is based on the number of years’ service:

  • Less than five years entitles the employee to 3 months sick leave
  • 5 – 10 years’ service entitles the employee to between 6 to 9 months sick leave (region-specific)
  • 10 – 15 years’ service entitles the employee to between 12 to 18 months sick leave(region-specific)
  • 15 – 20 years’ service entitles the employee to 18 months, and more than 20 years’ service entitles the employee to up to 24 months’ sick leave.

The entitlement for sick pay payment is also based on the number of years’ service; for sick leave of fewer than six months in length, the calculation is as follows:

  • Less than two years of employment- 60.00% of the regular wages
  • 2-4 years of employment- 70.00% of the regular wages
  • 4-6 years of employment- 80.00% of the regular wages
  • 6-8 years of employment- 90.00% of the regular wages
  • 8+ years of employment- 100.00% of the regular wages

The entitlement for sick pay payment is also based on the number of years’ service for sick leave of more than six months in length; the calculation is as follows:

  • Less than 1 year of employment- 40.00% of the regular wages
  • 1-3 years of employment- 50.00% of the regular wages
  • 3+ years of employment- 60.00% of the regular wages

Maternity Leave

All female employees are eligible for maternity benefits, consisting of 98 days paid leave; this increases to 113 days for multiple or complicated births.

The maternity payment is made by the Social Security Bureau (where the employee is registered) and is based on an average monthly salary across the year preceding the due date, or 3x the minimum wage, whichever is the greater.

The maternity leave entitlement and payment generally differ per region; for example, the employer supplements the maternity pay with additional pay in Beijing.

Paternity Leave

In China, fathers are entitled to paid paternity leave of a total of 10 days, although this entitlement may differ per region.

Parental Leave

There is no statutory parental leave in China.

Other Leave

In China, In the event of the death of an immediate family member, an employee is entitled to up to three days’ leave, depending on the employment contract and region.

In the event of an employee’s marriage, an employee is entitled to between three and ten days’ leave, depending on the employment contract and region.

Termination

Termination Process

The termination process varies according to the employment agreement and collective agreement in place and is based on the type of contract, job role, region, and reason for termination.

Notice Period

Notice periods in China are generally set at 30 days, and if notice isn’t given, the employer can provide payment in lieu.

Severance Pay

In China, severance pay is mandatory if applicable. Still, the amount differs based on the length of service; an employee can be entitled to one-month regular salary pay for every year of service completed, up to a maximum of 3x the minimum wage but for no more than 12 months.

Probation Period

Probation periods in China for permanent employees are generally between 1 and 6 months.

VISA

VISA

The employer must sponsor the visa and must be an accredited company that may hire foreign employees. The employee must be a certified foreign expert in the field they will be working.

In China, there is an age limit for male and female applicants for a work visa; for male applicants, the age limit is 24-65, and for female employees, the age limit is 24-55. The employer must send a government-issued employment permit and visa notification letter to the employee, executed and submitted to the Chinese government.

A Z Visa is valid for only 30 days upon arrival, and then during this time, the employer must apply for a temporary residence permit on behalf of the employee. The Z visa is valid for 90 days up to 50 years. 

Other visa options include the R Visa for highly skilled people in great demand in China and the J Visa for journalists.

The process usually takes about 8 weeks to complete.

VAT

General

The average standard rate of VAT  is 13.00%.

For companies looking to hire in China without a registered local entity see our China payroll service

Version History

July 1, 2022
In Shanghai, the monthly salary cap for statutory social benefit calculation has changed from RMB 31,014 to RMB 34,188 in July, which will be valid from July 2022 throughout June 2023 as the social benefit year.
February 22, 2022
The regional minimum wages have been updated.
Payroll contributions and personal income tax rates have been updated.
July 1, 2021
Minimum wage in Shanghai increases to 2,590.00 CNY
Stay up to date on payroll & employment law changes

Questions & Answers

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Milena H.
Milena H.
8 months ago

Hi, is a commuting allowance mandatory? If so, how does it work?

Porshea Chong
Porshea Chong
4 months ago

Hi may i know what does daily wages mean? Daily wages is equal to basic salary or basic salary + allowances?

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