How much does it cost to hire an employee through an EOR in China?

EOR pricing typically ranges from $400–$700 per month per employee, plus the employee's base salary and benefits. Beyond the EOR fee, you'll pay: (1) **Base salary**—market rate for the role in China. (2) **Employer contributions**—approximately 38% on top of salary for taxes, social insurance, and mandatory benefits. (3) **Optional benefits**—health insurance, bonuses, stock options. For example, hiring a developer earning $3,000/month would cost approximately $3,000 + (38% = $1140) + $500 EOR fee = $4640/month total.

Is using an EOR legally safe in China?

Yes, using an EOR in China is fully legal and compliant when you work with established providers like Deel, Remote, or Oyster. These providers are registered employers in China and handle all legal obligations. China has complex employment regulations that vary significantly by city and province. Employer burden is substantial (30-38% social insurance + 5-12% housing fund = 35-50% total). Foreign employees require work permits and residence permits. Employment contracts must be in Chinese. Labor law is strictly enforced. The EOR assumes the legal employer role, so you avoid misclassification risks that come with contractor arrangements. However, choose reputable EOR providers with proven track records in China—smaller or unregistered providers carry significant risk.

What are the mandatory benefits I need to provide to employees in China?

China requires employers to provide several mandatory benefits: - **Social Insurance**: Employer contributes 30-38% (varies by city): pension 16%, health 8%, unemployment 0.5%, work injury 0.5-2%, maternity 0.5%. - **Housing Fund**: Employer contributes 5-12% (varies by city) to mandatory housing accumulation fund. - **Annual Leave**: Minimum 5 days per year for first 10 years, 10 days after 10 years. - **Severance**: One month salary per year of service if terminated without cause. - **Bonuses**: Year-end bonuses common (not mandated but culturally expected). These benefits are built into the EOR fee and handled automatically by your EOR provider. You don't need to manage them separately—just pay the total monthly fee and the EOR handles all compliance.

How long does it take to onboard an employee through an EOR in China?

With an EOR, the typical timeline is 21 days from offer acceptance to the employee's first paycheck. The process includes: (1) **Days 1–2**: Background checks and document verification. (2) **Days 3–11**: Employment contract in local language, tax registration. (3) **Days 12–21**: Payroll setup, benefits enrollment, system access. This is dramatically faster than hiring via a subsidiary (which typically takes 2–3 months), making EOR ideal for time-sensitive hiring.

Should I use an EOR or set up a legal subsidiary in China?

Use an **EOR** if you're: hiring your first employee in China, want to avoid legal complexity and ongoing compliance costs, or plan to hire fewer than 5 people. EORs typically cost $400–$700/month per employee and offer simple, predictable pricing with zero additional administrative burden. Use a **subsidiary** if you're: planning to hire 10+ people in China, want direct control over hiring and contracts, or are already established in the country. Setting up a subsidiary takes 2–3 months and costs $2,000–$10,000 in legal and accounting fees, but gives you flexibility and lower per-employee costs long-term. For most small companies hiring their first international team, EOR is the faster, safer choice.

Which EOR providers support hiring in China?

The major EOR providers supporting China are: **Deel** (150+ countries), **Remote** (80+ countries), **Oyster** (130+ countries), **Rippling** (50+ countries), and **Multiplier** (150+ countries). Each offers similar core features—payroll, compliance, tax handling—with varying prices, customer support, and platform quality. Compare based on: (1) **Price**: $400–$700/month, (2) **Support quality**: Check reviews for your timezone, (3) **Feature set**: Some offer built-in benefits, others are payroll-only, (4) **User experience**: Platform simplicity varies significantly.

What happens to my EOR employee if I stop using the EOR service?

If you decide to leave an EOR service, your options depend on your long-term plan: (1) **Switch to another EOR**: The employee transitions to a new EOR provider within days—no job loss. (2) **Set up a local subsidiary**: The employee becomes employed by your subsidiary. Most EOR providers can help facilitate this transition. (3) **Separate from the employee**: You can terminate the employment agreement with notice (typically 30–60 days in China), following all local severance requirements. Because the EOR is the legal employer, any transitions or terminations must comply with China's labor laws—another reason to use established, licensed EOR providers.

Employer of Record in China

Onboarding Time

21 days

Employer Contributions

38%

EOR Providers

Currency

Chinese Yuan (CNY)

Employer Cost Breakdown in China

38%

$1,900

Monthly cost on $5k salary

~$500

Typical EOR fee/mo

21d

Onboarding time

China is a technology powerhouse with expertise in AI, mobile development, e-commerce, and manufacturing. Cities like Beijing, Shanghai, Shenzhen, and Hangzhou have thriving tech ecosystems. However, hiring in China is complex: employment regulations vary by city, all contracts must be in Chinese, foreign employees need work permits, and social insurance contributions are substantial (30-38%). Additionally, geopolitical considerations affect international hiring in China. Companies should carefully assess business and compliance risks before hiring. Those proceeding should work with established EOR providers with local expertise. The employer burden is among the highest globally: social insurance (~30-38%), housing fund (~5-12%), and other mandatory benefits. Despite high contributions, employee benefits are substantial. Using an EOR handles regulatory complexity, city-specific variations, and work permit coordination.

EOR Providers for China

Compare the leading Employer of Record providers for hiring in China. All prices are monthly and exclude employee salary and benefits.

Provider	Monthly Fee	Coverage	Best For	Key Features	Action
Deel	$599	150+	Companies scaling globally	Fast onboardingBuilt-in compliance	Get Quote
Remote	$599	80+	Mid-size companies	Own legal entitiesBenefits management	Get Quote
Oyster	$599	130+	Remote-first companies	Guided hiringLocal benefits	Get Quote
Rippling	$600	50+	Tech companies	Unified HR platformIT management	Get Quote
Multiplier	$400	150+	Cost-conscious companies	Competitive pricingMulti-currency payroll	Get Quote

Tip: Most EOR providers offer a free trial or demo. Contact multiple providers to compare features, customer support quality, and specific support for China. Pricing and coverage may change after 2026.

Legal Requirements in China

Business registration with local SAMR (market regulation)

Social insurance registration (five insurances)

Residence permit for foreign employees

Employment contract in Chinese

Compliance with Labor Law of China

Mandatory Benefits

Benefit	Description
Social Insurance	Employer contributes 30-38% (varies by city): pension 16%, health 8%, unemployment 0.5%, work injury 0.5-2%, maternity 0.5%.
Housing Fund	Employer contributes 5-12% (varies by city) to mandatory housing accumulation fund.
Annual Leave	Minimum 5 days per year for first 10 years, 10 days after 10 years.
Severance	One month salary per year of service if terminated without cause.
Bonuses	Year-end bonuses common (not mandated but culturally expected).

Compliance Guide

**Employment Contract**: Must be in Chinese (English contracts require official Chinese translation and notarization). Specify job title, duties, salary, benefits, work schedule, leave, and termination. **Social Insurance**: Total employer contribution 30-38% varies by city. Breakdown: pension 16%, health 8%, unemployment 0.5%, work injury 0.5-2%, maternity 0.5%. **Housing Fund**: Mandatory 5-12% employer contribution (varies by city) to housing accumulation fund. Employee can withdraw for home purchase or mortgage. **Foreign Employee Requirements**: Non-Chinese nationals need: (1) Work permit from local government, (2) Z-visa sponsorship, (3) Residence permit. The employer must sponsor and manage these. The EOR handles coordination. **Annual Leave**: Minimum 5 days per year (employees earning leave incrementally). After 10 years, minimum 10 days. After 20 years, minimum 15 days. **Severance**: One month salary per year of service if terminated without cause. Employer must provide notice and negotiation period. **Tax Compliance**: China has progressive income tax (0-45%). Foreign employees may qualify for reduced rates. The EOR handles all tax calculations and submission. **City Variations**: Beijing, Shanghai, Shenzhen, and Chengdu have different minimum wages, social insurance rates, and housing fund percentages. Confirm your city's specific rates with the EOR. **Termination**: Requires valid cause or notice period (typically 30 days). Severance is mandatory for termination without cause or layoff.

Why Use an EOR in China?

China offers access to massive talent pools and lower labor costs in some sectors. However, complex regulations, city variations, and work permit requirements make EOR essential. Only use EOR with proven Chinese presence and expertise.

Other EOR Options in Asia

Philippines

Onboarding: 14 days

15% contributions→

India

Onboarding: 14 days

24% contributions→

Vietnam

Onboarding: 14 days

21.5% contributions→

Singapore

Onboarding: 10 days

17% contributions→

Japan

Onboarding: 14 days

15% contributions→

South Korea

Onboarding: 14 days

13% contributions→

Hiring in China: FAQs

An Employer of Record (EOR) is a third-party company that becomes the legal employer of your remote workers in China. You define the role, manage the day-to-day work, and set the compensation. The EOR handles all employer responsibilities: payroll, benefits, tax compliance, employment contracts, and labor law compliance. This means you can hire full-time employees in China without establishing a subsidiary or legal entity. The process typically takes 21 days from offer to first paycheck.

Start hiring talent in China

Deel handles payroll, compliance, and benefits. No local entity needed.

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