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Human Resources &
Payroll Administration

Navigate China's complex Labor Contract Law seamlessly. From managing the "Five Insurances and One Fund" to executing bilingual employment contracts, we ensure complete HR compliance.

China’s labor regulations are highly protective of employees. Missteps in probationary periods, termination procedures, or failing to make statutory social security contributions can lead to severe operational friction and costly labor arbitration.

Relying on translated home-country employment agreements is a critical mistake. To build a robust team in China, you need localized contracts, a statutory employee handbook, and an automated payroll system that perfectly integrates with State Taxation Administration (STA) requirements.

Core HR & Payroll Services

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    Payroll & IIT Processing Automated gross-to-net calculations and prompt monthly Individual Income Tax (IIT) filing.
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    Social Security Registration Mandatory reporting and payment of local housing funds and pension schemas for all staff.
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    Labor Contracts Bilingual employment agreements customized to municipal Labor Bureau standards.
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    Employee Handbooks Drafting vital statutory policies covering overtime, leave, confidentiality, and termination grounds.
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    EOR (Employer of Record) Legally hire staff in China through our entity before your WFOE is formalized.
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    Termination & Severance Navigating statutory Economic Compensation and mutual termination agreements to avoid arbitration.

"Five Insurances and One Fund"

The backbone of China's localized HR system is the "Wu Xian Yi Jin" (Five Insurances and One Fund). Both employers and employees are legally obligated to contribute monthly based on the employee's average salary, up to municipal limits.

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Medical & Maternity Provides partial reimbursements for treatments and covers female employees during maternity leave.
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Pension (Endowment) The largest contribution category, guaranteeing a basic living allowance after statutory retirement.
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Unemployment & Injury Vital cushions for layoffs or workplace-related incidents (paid entirely by the employer).
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Housing Provident Fund A mandatory savings fund that employees can withdraw from exclusively to rent or purchase property.

Frequently Asked Questions

No. You can only unilaterally terminate an employee on statutory grounds (e.g., severe breach of the properly drafted Employee Handbook). Without solid cause, termination requires mutual agreement and statutory severance pay (Economic Compensation).
Yes. The maximum probation period scales with the contract length: maximum 1 month for contracts under 1 year, 2 months for 1-3 years, and 6 months for a 3-year or open-ended contract.
Currently, foreign employees working in China are generally required to participate in the social security system, though local enforcement varies heavily by municipality and existing bilateral social security treaties with their home country.
Because Chinese law strongly favors the employee, courts rely heavily on the registered Employee Handbook to determine if an employer can fire "for cause." Without a signed, bilingual handbook, terminating underperforming staff is extremely difficult and expensive.

Need to Hire Locally?

From EOR staffing solutions to full WFOE payroll management, speak with our advisors today.

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