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Greater China · Hiring guide · 2026

Hiring in China: labour law and payroll

This page is the labour-law and payroll stack for multinational employers hiring in mainland China. It is not a salary survey.

In-country employment is how you run this stack without a WFOE. The rules below still apply to the contract.

To hire without incorporating first, use in-country employment in China.

Contracts

Contracts and probation

Written contract within one month

A labour contract must be in writing within one month of the start date. Missing that deadline creates a double-wage claim for the uncovered period, and a longer delay can convert the relationship toward an open-ended contract.

Fixed-term and open-ended

Two consecutive fixed-term contracts, or ten years' service, generally require an open-ended contract on the next renewal. Do not chain short contracts to avoid that rule.

Probation

Maximum probation is one month if the contract is under one year; two months if it is one to three years; six months if it is three years or open-ended. Probation pay cannot be below 80% of the contract wage or the local minimum wage.

Hours

Working time and overtime

Standard hours

Eight hours a day and 40 hours a week, with at least one rest day in seven. Comprehensive or flexible hour systems need approval; they are not a quiet way to skip overtime.

Overtime premiums

150% on weekdays, 200% on rest days if time off in lieu is not given, 300% on statutory holidays. Monthly overtime is capped at 36 hours.

996 is not lawful

A 9-to-9, six-day roster is not a standard-hour system. If you need longer cycles, use an approved comprehensive-hour arrangement — do not write 996 into a handbook.

Wage floor

Minimum wage, 2026

Minimum wages are set by province and city, not by Beijing as a national monthly floor. Figures below are municipal notices in force in 2026. They are wage floors, not market salaries.

RuleFigure
ShanghaiRMB 2,740 / month (from 1 July 2025)
BeijingRMB 2,540 / month (from 1 September 2025)
ShenzhenRMB 2,520 / month
Employer social chargesCity-set pension, medical, unemployment, work injury, plus housing fund — on a capped base

In most cities the published minimum wage already assumes the employee's own social-insurance deduction sits inside it. Shanghai is an exception: its monthly minimum is stated exclusive of those employee deductions. Confirm the city rule before you issue a floor-level offer.

Exit

Terminating and offboarding

Termination needs a statutory ground

You cannot end a labour contract at will. Grounds include mutual agreement, employee fault under Article 39, non-fault termination with notice under Article 40, and economic layoff under Article 41 — each with its own process.

Economic compensation

Where compensation is due, the usual measure is one month's average wage per full year of service (N), or N+1 when you terminate with notice in lieu. Average wage is capped at three times the local average, and years of service for that cap are limited.

Handover and final pay

Work certificates, social-insurance stop-files, and housing-fund transfer have to be completed. Holding the last salary until a handover is 'finished' is a common dispute.

Questions

FAQ

What is the overtime rate in China?
150% of normal wages for weekday overtime, 200% for rest days if compensatory leave is not given, and 300% for statutory holidays. Standard hours are 8 a day and 40 a week, with a 36-hour monthly overtime cap.
How long can probation last?
Up to one month, two months, or six months depending on the contract term. Probation pay must be at least 80% of the contract wage and at least the local minimum wage.
Can we dismiss without cause?
No. Mainland labour contracts end on statutory grounds, with notice and economic compensation where those rules require them. Build the exit into the hire plan.
Where do we file social insurance?
In the city of work, on that city's base, floor, and cap. A headquarters city is not a substitute.

Other markets

Other hiring guide pages

Reviewed 11 September 2026

This is a hiring briefing for multinational employers, not legal advice. Statutory rates move by city, province, and sector. Confirm the place of work before you issue an offer.

Sources

  • PRC Labour Contract Law
  • PRC Labour Law — working hours and overtime
  • Shanghai, Beijing, and Shenzhen municipal minimum-wage notices in force in 2026

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