Learn the steps, compliance rules, salary structures, and total costs to successfully hire remote team in China. This guide covers China’s employment landscape, in-demand skills, cost of living, and the benefits of using an Employer of Record (EOR).
China is one of the most attractive destinations for hiring a remote team in 2025. With a massive, highly skilled workforce, world-leading digital infrastructure, and a rapidly expanding economy, China provides global businesses with unmatched opportunities. Companies can hire remote team members in China across technology, e-commerce, finance, and manufacturing while maintaining operational efficiency and legal compliance.
Table of Contents
- Overview of China for Remote Hiring
- Leading Industries Driving Employment in China
- Industry Landscape Snapshot
- Cost of Living for Remote Employees in China
- In-Demand Skills in China (2025)
- Key Legal Considerations for Hiring in China
- Payroll and Tax Compliance in China
- Using an EOR for Payroll and Compliance
- Salary Ranges for Remote Roles in China
- Steps to Hire a Remote Team in China
- Total Cost of Hiring Remote Employees in China
- How Can Asanify Simplify Hiring Remote Team in China?
- Conclusion
- FAQs
Overview of China for Remote Hiring
China offers a strategic hub for businesses looking to expand across Asia and global markets. Its labor market is diverse, encompassing IT, manufacturing, research, and business services. The country’s rapid digital adoption, high-speed internet, and popular remote work platforms such as WeChat Work and DingTalk make it highly suitable for managing distributed teams efficiently.
With a large talent pool in technology, finance, and engineering, China provides strong infrastructure that supports remote collaboration and productivity. Competitive labor costs compared to Western economies, combined with a strategic time zone that overlaps with Asia-Pacific and parts of Europe, make it an excellent choice for global companies to hire remote team members and optimize their international operations.
Leading Industries Driving Employment in China
Key industries where hiring a remote team in China is growing:
- Technology & IT Services: Software development, AI, and cloud solutions
- E-commerce & Digital Marketing: China’s massive e-commerce ecosystem drives remote hiring in marketing and analytics
- Finance & Accounting: IFRS reporting, compliance, and auditing are in demand
- Engineering & Manufacturing: Remote design, supply chain, and product development roles
- Customer Support & BPO Services: Multilingual support for global markets
Industry Landscape Snapshot
China’s economy is a mix of multinational corporations, startups, and state-owned enterprises.
- Beijing & Shanghai: Finance, AI, and corporate headquarters
- Shenzhen & Hangzhou: Tech innovation and e-commerce hubs
- Guangzhou & Chengdu: Manufacturing, logistics, and remote BPO services
Rapid adoption of remote-friendly tools allows companies to hire remote team members in China without establishing offices.
Cost of Living for Remote Employees in China
China offers a cost-effective labor market, with living costs varying significantly between Tier 1 and Tier 2 cities.
| Expense Category | Typical Monthly Cost (CNY) | Notes |
| Housing | ¥4,000 – ¥10,000 | Higher in Shanghai and Beijing |
| Utilities | ¥500 – ¥1,000 | Includes electricity, water, and gas |
| Transport | ¥200 – ¥600 | Public transport is widely used |
| Food & Groceries | ¥1,500 – ¥3,500 | Varies by city and lifestyle |
| Leisure & Miscellaneous | ¥800 – ¥2,000 | Entertainment and personal expenses |
These costs make hiring a remote team in China financially attractive for global companies.
In-Demand Skills in China (2025)
When you hire remote team in China, top skills include:
- Technology: Software engineering, AI, cloud, and cybersecurity
- Data Analytics: Business intelligence, machine learning, data visualization
- Finance & Accounting: IFRS, auditing, tax compliance, and reporting
- E-commerce & Marketing: SEO, SEM, cross-border marketing
- Customer Support: English, Japanese, and Korean bilingual roles
Suggested Read: Hire Remote Employees Onboarding Checklist with EOR in China
Key Legal Considerations for Hiring in China
Hiring in China requires strict compliance with Chinese labor laws, social insurance regulations, and tax requirements. Employers must follow rules covering employment contracts, worker classification, and statutory contributions to avoid penalties and legal complications. A strong understanding of China’s labor framework ensures smooth hiring and helps businesses avoid costly compliance issues.
Employment Laws
China has comprehensive employment regulations under the Labor Law of the People’s Republic of China and the Labor Contract Law, which protect workers’ rights and define employer responsibilities. Employers must comply with provisions on wages, leave, social security, and termination procedures. Non-compliance can lead to fines, employee disputes, or operational risks.
- Employers must adhere to Chinese labor laws regarding minimum wages, leave entitlements, and statutory benefits.
- Registration for social insurance and housing fund contributions is mandatory for employees.
- Anti-discrimination and workplace safety regulations must be followed.
- Non-compliance may result in inspections, financial penalties, or legal action.
Work Hours and Overtime
The standard workweek in China is 40 hours, typically 8 hours per day over 5 days. Overtime is highly regulated, with specific limits and compensation requirements under labor law.
- Standard work schedule: 8 hours/day, 5 days/week (40 hours total).
- Overtime pay: 150% on weekdays, 200% on rest days, and 300% on public holidays.
- Employers must maintain accurate records of employee work hours.
- Violations can trigger labor bureau investigations and penalties.
Employment Contracts
Written employment contracts are mandatory in China to protect both employees and employers. Contracts must specify job responsibilities, salary, benefits, probation terms, and termination conditions.
- Clearly outline job role, duties, salary, and benefits.
- Include probationary period, working hours, and social insurance obligations.
- Termination clauses must comply with the Labor Contract Law.
- Different rules apply to fixed-term, open-term, and project-based contracts.
Worker Classification
Proper classification of workers is critical in China. Misclassifying employees as independent contractors can lead to retroactive tax liabilities, social insurance penalties, and fines.
- Employees: Covered by labor law and entitled to social insurance and housing fund benefits.
- Independent Contractors: Operate under civil contracts and manage their own taxes; limited in use for long-term work.
- Misclassification can result in back payments, fines, and legal disputes.
- Clear contracts and well-defined roles are essential to reduce compliance risk.
Payroll and Tax Compliance in China
Employers in China must adhere to strict payroll and tax regulations to ensure accurate salary disbursement, proper withholding, and compliance with social insurance and housing fund requirements. This includes calculating employee compensation, managing mandatory contributions, and submitting timely reports to government authorities. Non-compliance can result in fines, audits, and reputational damage, making a strong payroll process essential for companies hiring in China.
Payroll Taxes and Deductions
China has a Pay-As-You-Earn (PAYE) system for individual income tax, along with mandatory social insurance and housing fund contributions. Employers are responsible for withholding these amounts from employee salaries and remitting them to the relevant authorities.
- Individual Income Tax (IIT): Withheld monthly based on progressive tax rates (3% to 45%).
- Social Insurance Contributions: Mandatory for all local employees and include pension, medical, unemployment, maternity, and work injury insurance.
- Housing Provident Fund: Contributions for housing savings, with rates varying by city (typically 5–12%).
- Accurate and timely withholding is required to avoid interest and penalties.
Employer Contributions
In addition to withholding employee deductions, employers must contribute their own portion to social insurance and the housing fund.
- Employer Social Insurance Share: Covers pension, medical, work injury, maternity, and unemployment insurance; rates vary by region.
- Housing Fund Contribution: Matching contribution to employee housing fund (varies by city).
- Compliance: Failure to pay correctly or on time can result in audits, penalties, and restrictions on business operations.
Employee Benefits
Chinese labor laws mandate several core benefits for employees, and many companies offer additional perks to stay competitive.
- Mandatory Benefits: Social insurance, housing fund, paid leave, and maternity/paternity leave.
- Annual Bonus: Often equivalent to one month’s salary, though not legally required.
- Additional Perks: Companies may provide allowances, health insurance upgrades, and wellness benefits.
Using an EOR for Payroll and Compliance
Using an Employer of Record (EOR) simplifies hiring a remote team in China:
- Manages payroll, tax filings, and social insurance contributions
- Handles compliant employment contracts and housing fund obligations
- Reduces misclassification and compliance risks
- Allows hiring without setting up a local entity
Salary Ranges for Remote Roles in China
| Role | Average Annual Salary (CNY) | Average Annual Salary (USD) | Notes |
| Software Developer | ¥200,000 – ¥350,000 | $28,000 – $50,000 | Higher in Tier 1 cities |
| Data Analyst | ¥180,000 – ¥300,000 | $25,000 – $43,000 | BI & ML skills in demand |
| Project Manager | ¥250,000 – ¥400,000 | $35,000 – $57,000 | IT & e-commerce sectors |
| Digital Marketing Specialist | ¥150,000 – ¥250,000 | $21,000 – $36,000 | Cross-border experience valued |
| HR & Payroll Specialist | ¥180,000 – ¥280,000 | $25,000 – $40,000 | Compliance knowledge is key |
| Customer Support Executive | ¥100,000 – ¥180,000 | $14,000 – $26,000 | Bilingual roles pay more |
| Finance & Accounting Analyst | ¥200,000 – ¥320,000 | $28,000 – $45,000 | IFRS and tax roles in demand |
Steps to Hire a Remote Team in China
- Define Your Hiring Needs – Determine roles, skills, and type of workforce (employees or contractors).
- Choose a Hiring Model – Direct hire (requires a Chinese entity), contractors, or EOR for compliant hiring.
- Source and Interview Candidates – Use 51Job, Zhaopin, Liepin, LinkedIn, and recruitment agencies.
- Offer Letters and Contracts – Ensure all contracts meet Chinese Labor Law standards.
- Onboard and Manage Remote Employees – Register employees for social insurance and housing fund; implement digital HR tools.
Total Cost of Hiring Remote Employees in China
| Role | Gross Salary (CNY) | Employer Contributions (~35%) | Estimated Benefits | Total Employer Cost (CNY) |
| Software Developer | 275,000 | 96,250 | 20,000 | 391,250 |
| Data Analyst | 240,000 | 84,000 | 18,000 | 342,000 |
| Project Manager | 325,000 | 113,750 | 25,000 | 463,750 |
| Digital Marketing Specialist | 200,000 | 70,000 | 15,000 | 285,000 |
| HR & Payroll Specialist | 230,000 | 80,500 | 16,000 | 326,500 |
| Customer Support Executive | 140,000 | 49,000 | 12,000 | 201,000 |
| Finance & Accounting Analyst | 260,000 | 91,000 | 18,000 | 369,000 |
How Can Asanify Simplify Hiring Remote Team in China?
Asanify acts as an Employer of Record (EOR), managing payroll, employee benefits, compliant employment contracts, and all aspects of labor law compliance for global companies. This enables businesses to hire faster, often onboarding remote employees within 1–2 weeks, while ensuring full compliance to avoid misclassification risks, tax issues, and legal complications. It also provides cost efficiency by eliminating the need to establish a local legal entity or manage complex administrative operations.
In addition, Asanify handles social insurance contributions, tax filings, and labor law obligations, ensuring smooth and fully compliant operations across borders. By centralizing HR, payroll, and compliance into a single streamlined system, Asanify allows companies to focus on core business growth while effortlessly scaling their international teams.
Suggested Read: Understanding Labour Laws in China: Contracts, Wages, and Termination Rules
Conclusion
China is an attractive destination for hiring remote teams thanks to its vast and skilled talent pool, strategic location in Asia, and strong economic growth. By partnering with an Employer of Record (EOR) providers, global businesses can simplify compliance with Chinese labor laws, accelerate hiring processes, and manage payroll and benefits seamlessly. This approach eliminates the need to set up a local legal entity while ensuring full adherence to all legal and administrative requirements.
FAQs
They can register a local entity or use an Employer of Record (EOR) to hire employees legally without an entity.
40 hours per week, typically 8 hours/day over 5 days.
Yes, contracts are mandatory within 30 days of starting employment.
Employers withhold income tax, social insurance, and housing fund contributions and remit them monthly.
Yes, but misclassification risks exist; using an EOR ensures compliance.
Total cost includes gross salary plus ~35–40% employer contributions and benefits.
Asanify manages contracts, payroll, taxes, and social contributions, enabling fast, compliant hiring of remote teams.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
