Countries/China/In-country employment
Greater China · In-country employment
In-country employment in China
A foreign company without a PRC entity generally cannot employ mainland staff on its own books. A representative office cannot hire PRC nationals directly; it uses a dispatch arrangement.
In-country employment is the path for a first country manager, a plant office, or a commercial seat that must start before a WFOE is ready. Convert the person onto your own entity later if you open one.
Plan an in-country hire- ✓
Local labour contract — The person is employed in the city of work under the Labour Contract Law — not unpaid, and not on a visitor visa.
- ✓
You still manage — Your managers set the work. We run the contract, city filings, and payroll.
- ✓
No WFOE first — Start the hire before you incorporate. Move them onto your company when the entity exists.
Statutory stack
What sits on top of wages
Do not budget a single national percentage. Employer social insurance and housing fund are set by the city, on a contribution base with a floor and a cap. The figures below are the statutory stack, not a salary survey.
| Item | 2026 rule |
|---|---|
| Pension, medical, unemployment, work injury | City rates on a capped contribution base |
| Housing fund | Separate city scheme; employer and employee each pay a published band |
| Typical employer add-on | Varies by city — often about a third of the contribution base, not of uncapped gross |
| 13th month | Not statutory; common in offers and then treated as contractual |
| Minimum wage (illustrative, 2026) | Shanghai RMB 2,740 / month; Beijing RMB 2,540; Shenzhen RMB 2,520 |
Role salary ranges are not on this page. Open the 2026 salary guide when those figures are published.
Choose a path
In-country employment vs incorporating
The usual choice is in-country employment now, or a WFOE when you want your own legal person in China.
| In-country employment | Your own entity | |
|---|---|---|
| When to use it | First hires, a plant office, or a seat that must start before the company exists. | When you want your own WFOE or joint venture as the employer. |
| Who employs | A licensed local employer holds the labour contract. Your managers direct the work. | Your PRC company employs and files in its own name. |
| Representative office | An RO still cannot hire PRC staff directly. In-country employment or dispatch is the compliant path. | An RO is not an employing entity for PRC nationals. |
Onboarding
From briefing to first payday
City registrations — not the search — set the calendar. Budget weeks, not a 5-day shortlist.
01
Briefing
City of work, role, start date, and whether this is a first hire or a team.
02
Contract
Written labour contract, probation, and classification under the Labour Contract Law.
03
City filings
Social insurance and housing fund in the city of work, plus work-permit steps if the hire is a foreign national.
04
First payday
Monthly payroll, withholdings, and filings the inspector can read.
05
Convert or close
Move the person onto your WFOE, or offboard under local termination rules.
Compliance
Five points that change the hire
01
Written contract within one month
Failing to issue a written labour contract triggers double-wage risk for the uncovered period.
02
City of work, not HQ city
Social insurance and housing fund follow the place of work. A Shanghai contract for someone sitting in Suzhou is the usual mistake.
03
Overtime cap
Standard hours are 8 a day and 40 a week. Weekday overtime is 150%, rest days 200%, statutory holidays 300%, with a monthly overtime cap of 36 hours.
04
Probation is limited
One month on a contract under one year; two months on one to three years; six months on three years or an open-ended contract. Probation pay cannot fall below 80% of the contract wage or the local minimum.
05
Foreign nationals need a work permit
A Z-visa path, work permit, and residence permit — not a business visit — if the person is not a PRC national.
Questions
FAQ
- Can a foreign company hire in China without a WFOE?
- Not on its own books. The compliant path is a licensed local employer that issues the labour contract and files city social insurance and housing fund, while your managers direct the work. That is in-country employment.
- Can a representative office hire PRC staff?
- Not directly. An RO uses a dispatch arrangement or in-country employment. It is not an employing entity for mainland nationals.
- Is there a national employer social-insurance rate?
- No. Rates, floors, and caps are set by the city. Budget the city of work, not a single national percentage, and not uncapped gross pay.
- Can we convert the person onto our own company later?
- Yes. When your WFOE is ready, we move the labour contract across under local rules and close the in-country assignment.
Labour-law detail for China sits on the hiring guide.
Other markets
Other in-country employment 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 (standard hours and overtime)
- Shanghai, Beijing, and Shenzhen municipal minimum-wage notices in force in 2026
Plan an in-country hire in China
Tell us the city, the role, and when they need to start.