Human Resources & Payroll in China 2017-2018 (6th Edition)

Published: June 2017

A firm understanding of China’s laws and regulations related to human resources and payroll management is absolutely necessary for foreign businesses in China. This edition of HR and Payroll, updated for 2017/18, navigates China’s laws and regulations related to HR and payroll management – essential information for foreign investors looking to establish or already running a foreign-invested entity in China.

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  • No. of Pages: 143 pages
  • ISBN: 978-988-14805-1-4

A firm understanding of China’s laws and regulations related to human resources and payroll management is essential for foreign investors in China. This also applies to local managers and HR professionals who may need to explain complex points of China’s labor policies to employees.

In China, there is a wide range of government institutions involved in HR processes, and while key laws are drafted by the central government, numerous bylaws and regulations are instituted at a local level. Accordingly, companies should still seek professional advice to deal with any specific situation they face relating to HR.

This guide was created in June 2017 with the latest information available at the time. It was written in consultation with Dezan Shira & Associates, a specialist foreign direct investment practice providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia.

Human Resources & Payroll in China 2017-2018 (6th Edition) covers the following:

  • Recruiting Professionals in China;
  • Hiring Staff;
  • Staff Administration and Payroll;
  • Terminating Employees;
  • Employing Foreign Workers.

Within these chapters, we discuss a range of different topics that affect HR and payroll in China, including labor contracts, labor dispatch and outsourcing, mandatory leaves, social insurances and housing fund, payroll processing and IIT calculation, termination and severance. We made substantial updates to the “Employ Foreign Workers” section, introducing the administrative procedures for hiring foreign workers under the new unified work permit system and tiered talents classification system.


  1. Recruiting Professionals in China
    1. China Recruitment Challenges
    2. Profiling
    3. Candidate Identification
    4. Selection
    5. On-boarding

  2. Hiring Staff
    1. Direct Hiring & Labor Contracts
    2. Dispatch
    3. Outsourcing

  3. Staff Administration and Payroll
    1. Structuring a Salary Package
    2. Work Hour Systems and Overtime Payments
    3. Mandatory Benefits
    4. Statutory Vocations and Payment Calculation
    5. Additional Payroll Costs
    6. Calculating and Filing Individual Income Tax
    7. Distributing Salaries
    8. Outsourcing Payroll

  4. Terminating Employees
    1. Terminating During the Probation Period
    2. Terminating During a Fixed-Term or Non-fixed Term Contract
    3. Terminating at the End of a Fixed-Term Contract
    4. Employees Not Allowed to Be Terminated
    5. Termination Pay and its Tax Treatment

  5. Employing Foreign Workers
    1. Overview of China’s Visa System 
    2. China's New Unified Work Permit and Tiered Talents Classification System
    3. Administrative Procedures for Hiring Foreign Employees (>90days)
    4. Short-Term Work in China
    5. Sending Your Chinese Staff Abroad

  6. Appendix: Social Welfare Contribution Tables
    1. Beijing
    2. Changchun
    3. Dalian
    4. Guangzhou
    5. Hangzhou
    6. Qingdao
    7. Shanghai
    8. Tianjin
    9. Shenzhen
    10. Suzhou


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