China Flag

21 Employer of Record (EOR) in China 2026

Hire people in China without registering a local company, payroll, contracts, taxes and compliance handled by a trusted local partner.
Dhiraj
Written By: Dhiraj Das

Co-founder

Manjuri-Dutta
Edited By: Manjuri Dutta

Co-founder & Editor

Country Capital:

Beijing

Language:

Standard Chinese

Price Range:

$199 - $650

Onboarding Time:

1 to 2 weeks

Official Currency:

Yuan

Working Hours:

40 Hours/Week

Public Holidays:

13 Days

Paid Annual Leaves:

15 Days

Country pages on EmployerRecords are built to support hiring decisions through independent provider evaluation and cost context. EmployerRecords is not an EOR provider.

Top 10 EOR in China: Quick Comparison

Before we check the list of top EOR solutions in China, here is a quick list of the top EOR providers that are regularly explored by business.
hellopebl_logo
Pebl
Avg 4.6 (507 Ratings Analyzed)
Coverage
180+ Countries
Starting Price
$599
Best For
Best for enterprise reach in 185+ countries.
Multiplier Logo
Multiplier
Avg 4.7 (3,059 Ratings Analyzed)
Coverage
150+ Countries
Starting Price
$400
Best For
Best for straightforward EOR pricing.
Oysterhr Logo
Oyster HR
Avg 4.5 (1,200 Ratings Analyzed)
Coverage
180 Countries
Starting Price
$699
Best For
Best for fast, compliant onboarding
Remofirst Logo
Remofirst
4.6 (200 Reviews Analyzed)
Coverage
185+ Countries
Starting Price
$199
Best For
Cost Effective EOR Solution
Deel Logo
Deel
Avg 4.8 (16,900 Ratings Analyzed)
Coverage
150 Countries
Starting Price
$599
Best For
Best for broad owned-entity coverage
Rippling-Logo
Rippling
Avg 4.8 (13,600 Ratings Analyzed)
Coverage
50+ Countries
Starting Price
$500
Best For
Best for all-in-one HR + EOR.
Globalization Partners Logo
Globalization Partners
Avg 4.6 (385 Ratings Analyzed)
Coverage
180+ Countries
Starting Price
Custom
Best For
Best for analyst-rated, enterprise-grade EOR.
Remote Logo
Remote EOR
Avg 4.5 (5,799 Ratings Analyzed)
Coverage
150+ Countries
Starting Price
$599
Best For
Best for owned-entity EOR with strong contractor options.
Papaya Global Logo
Papaya Global
Avg 4.2 (125 Ratings Analyzed)
Coverage
160 Countries
Starting Price
$599
Best For
Best for unified global payroll + payments.
Safeguard Global Logo
Safeguard Global
Avg 4.1 (85 Reviews Analyzed)
Coverage
180+ Countries
Starting Price
Custom
Best For
Best for GEO/EOR flexibility with local experts.

Our Ranking Methodology

To keep these listings accurate and useful, every Employer of Record featured on this page goes through a manual review process before being included. We don’t rely on vendor submissions or surface-level feature comparisons.

Our evaluations focus on how EOR providers actually operate in practice. This includes entity coverage, local compliance handling, payroll accuracy, contract structure, onboarding timelines, pricing transparency, and verified customer feedback.

Providers are ranked based on overall performance across these areas, with greater weight given to consistent local execution and operational reliability rather than marketing claims or software features alone.

Check Our Detailed Ranking Methodology

Estimate the Total Cost of Hiring in China

Employer of Record costs in China include gross salary, mandatory employer social insurance contributions, housing fund obligations, and the EOR service fee. The calculator below provides an estimated total cost for hiring an employee in China through an EOR.

The estimate reflects typical employment costs in Italy when hiring through an Employer of Record. Final pricing may differ based on compensation structure, benefits, and EOR provider terms.

Why use an EOR in China

Why to Trust Us

Can’t find the best EOR solution on this page?

Unable to find the best EOR solution for your business here? Explore our extensive list of EOR solutions.

Hiring in China

Hiring in China is smart, big talent pool, solid cities, but the paperwork can eat your week. Between company registration, local social insurance, individual income tax, and work-permit rules, it’s easy to get stuck or make an expensive mistake.

An Employer-of-Record (EOR) lets you skip the setup: they’re the local employer on paper, taking care of contracts, payroll, benefits and compliance so you don’t have to learn every regulation overnight.

I’ve helped lots of teams compare EOR options for China, and the difference between a smooth hire and a nightmare often comes down to the provider you pick.

Below I’ll break down what to expect, what questions to ask, and the real costs and timelines so you can pick an EOR that actually works for your business, no nonsense, no legal-speak, just the useful stuff.

Best Employer of Record Providers for China Hiring

The following providers are evaluated by companies hiring employees in China, based on compliance coverage, payroll capability, and operational fit.
hellopebl_logo

Pebl

Avg 4.6 (507 Ratings Analyzed)
About Pebl
Company: Velocity Global, LLC
Employees: 501-1000
Established: 2014
HQ: Denver, Colorado, United States
Support Offered By Pebl
Email Support
Live Chat
Tutorial Videos & Documentation
Phone
Social Media

Pebl’s Employer of Record (EOR) solution helps companies hire full-time employees in over 185 countries without setting up local entities. It handles everything from onboarding and compliant contracts to payroll, taxes, and benefits, all through a simple online platform. With local compliance built in, support for offboarding, and clear cost structures, it makes global hiring smooth and legally safe. Companies can expand internationally while Pebl takes care of the legal and administrative details.

Why we picked Pebl

Pebl takes a slower, more human approach. China’s labor system can be confusing, and their local team does a good job explaining how regional laws differ, things like probation limits, paid leave rules, and severance obligations. It’s not the biggest player, but that’s part of the appeal. Pebl is personal and attentive, making it a good match for companies that want hands-on help, not another software portal.

Pros
Fast global hiring without setting up entities
Streamlined onboarding and payroll
Local benefits administration handled
Strong customer support and guidance
Easy-to-use platform with centralized dashboard
Cons
Can be more costly than setting up your own entity long-term
Limited customization in some local employment terms
Not ideal for companies wanting full local presence
Some delays in certain country-specific processes
Check Pebl current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
EOR
$599
Per month/employee
Multiplier Logo

Multiplier

Avg 4.7 (3,059 Ratings Analyzed)
About Multiplier
Company: Multiplier Technologies Pte. Ltd.
Employees: 501-1000
Established: 2020
HQ: New York, New York, United States
Support Offered By Multiplier
Email Support
Live Chat
Tutorial Videos & Documentation
Phone
Social Media

Multiplier is a global employment platform that helps businesses hire full-time employees across 150+ countries without setting up local entities. It takes care of locally compliant contracts, automated payroll in multiple currencies, benefits, taxes, and onboarding—all in one dashboard. With built-in tools for managing expenses, equity, and freelancer payments, it simplifies international hiring and keeps everything compliant. Designed for fast-growing teams, Multiplier makes it easy to expand globally while staying focused on what really matters: building great teams.

Why we picked Multiplier

Multiplier gives companies a predictable way to hire in China without a local entity. It handles everything from employment registration to housing fund payments. What makes it stand out is how transparent the process feels, you’ll know costs upfront, and each payroll run shows exactly what’s withheld. For HR managers running teams across Asia, it helps keep China’s complexity from slowing things down.

Pros
Fully compliant local contracts
Handles payroll, taxes, and benefits
Simple, user-friendly dashboard
Supports equity and freelancer payments
Real-time cost estimation before hiring
Quick onboarding process
Cons
Pricing may be high for small startups
Limited customization in some country-specific benefits
Not ideal for short-term or project-based hiring
Support response times can vary depending on region
Check Multiplier current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractor
$40
per contractor/month
Payroll
Contact for pricing
EOR
$400
per employee/month
Oysterhr Logo

Oyster HR

Avg 4.5 (1,200 Ratings Analyzed)
About Oyster HR
Company: Oyster HR Inc.
Employees: 501-1000
Established: 2020
HQ: Charlotte, North Carolina, United States
Support Offered By Oyster HR
Email Support
Live Chat
Tutorial Videos & Documentation
Social Media

Oyster is a global Employer of Record platform that helps companies hire full-time talent across 180+ countries without setting up local entities. It manages everything from compliant contracts and localized onboarding to automated payroll and benefits in local currencies. With built-in legal insights, a cost calculator, and dedicated support, Oyster makes international hiring simple and fast. It also protects intellectual property and ensures compliance with local labor laws, letting businesses scale globally without legal complexity.

Why we picked Oyster HR

Oyster handles compliance in China cleanly. The platform produces contracts in both English and Chinese, processes taxes, and takes care of all mandatory benefits. It’s straightforward, with clear cost breakdowns that help teams budget accurately. Many HR teams use it when adding remote Chinese employees to existing global teams, it keeps everything consistent and compliant.

Pros
Handles local compliance, payroll, and taxes
Quick onboarding with region-specific contracts
Offers local benefits and currency payments
Transparent pricing with cost calculators
Scales easily for teams of any size
Cons
May be costly for very small teams
Limited customization for unique contract needs
Support speed may vary by region
Requires trust in third-party handling legal employment
Check Oyster HR current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractor
$29
per contractor/month
Payroll
$25
per employee/month
EOR
$599
per employee/month
Remofirst Logo

Remofirst

4.6 (200 Reviews Analyzed)
About Remofirst
Company: Remofirst, Inc.
Employees: 11-50
Established: 2021
HQ: California, United States
Support Offered By Remofirst
Email Support
Live Chat
Tutorial Videos & Documentation
Phone
Account Manager

Remofirst is a global Employer of Record (EOR) platform that helps businesses hire full-time employees in over 180 countries without setting up local entities. It takes care of everything from onboarding, payroll, taxes, and compliance to providing country-specific benefits. Through a simple platform, you can manage contracts, payments, and employee records all in one place.

Why we picked Remofirst

Remofirst is built for companies that need the basics done right at a fair price. It manages payroll, taxes, and social insurance in line with local rules. The support team is responsive and used to working with smaller, fast-moving businesses. If you’re hiring one or two employees and don’t want enterprise overhead, Remofirst makes sense.

Pros
Quick employee onboarding across 180+ countries
Full compliance with local labor laws
Centralized platform to manage payroll and benefits
Cost-effective compared to setting up entities
Dedicated account manager support
Transparent pricing with no hidden fees
Cons
Limited control over local HR processes
Some countries may have slower onboarding timelines
Check Remofirst current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractors
Custom Price
Contractors
Premium Contractors
$25
Per Person/Month
EOR
$199
Per Person/Month
Deel Logo

Deel

Avg 4.8 (16,900 Ratings Analyzed)
About Deel
Company: Deel, Inc.
Employees: 1001-5000
Established: 2019
HQ: San Francisco, California, United States
Support Offered By Deel
Email Support
Tutorial Videos & Documentation
Social Media

Deel is a global HR platform that lets companies hire full-time employees and contractors in over 150 countries through its Employer of Record service. It manages everything from compliant contracts and onboarding to international payroll, taxes, and benefits. With built-in tools for time-off tracking, expense management, and multi-currency payments, Deel simplifies global workforce management. The platform also offers visa support and integrates with top HR systems, making it easy to scale teams while staying compliant and efficient.

Why we picked Deel

Deel’s setup in China is mature and well-tested. It covers everything a compliant employer must handle, bilingual contracts, payroll in RMB, and the mandatory “five insurances and one housing fund.” Deel also manages the city-level variations that trip up newcomers, such as contribution caps and local tax filings.

The experience feels smooth and dependable, which is why many global firms use Deel for their first Chinese hires.

Pros
Fast global hiring without entity setup
Full compliance with local labor laws
Easy-to-use platform for HR and finance teams
Supports both employees and contractors
Multiple payment options and currencies
Localized contracts and benefits
Cons
Can be expensive for smaller teams
Limited customization in some contract templates
Complex pricing structure for some services
Some features depend on the country’s local laws
Check Deel current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractor
$49
per contractor/month
Payroll
$29
per employee/month
EOR
$599
per employee/month
Rippling-Logo

Rippling

Avg 4.8 (13,600 Ratings Analyzed)
About Rippling
Company: Rippling People Center, Inc.
Employees: 1001-5000
Established: 2016
HQ: California, United States
Support Offered By Rippling
Email Support
Live Chat
Tutorial Videos & Documentation

Rippling’s Employer of Record (EOR) lets you hire full-time employees across the globe without setting up local entities. It handles everything, from compliant contracts and automated payroll in local currencies to tax filings and benefits management. You can onboard employees in minutes, manage IT access, and keep all HR data in one place.

Why we picked Rippling

Rippling works well for tech-heavy organizations that already use it elsewhere. Its system brings China payroll, device management, and HR data into one place. Once your employees are onboarded, their tax and insurance deductions are processed automatically, and reports sync with your main HR system. It’s practical for global teams who prefer one clean tool rather than juggling separate vendors.

Pros
Easy and fast international hiring
Built-in compliance with local laws
Automated payroll in local currency
Seamless onboarding and offboarding
Integrated HR, IT, and finance tools
Transparent cost breakdown
Cons
Can be pricey for smaller teams
Limited support in some less common countries
Check Rippling current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Payroll
$8
Per Employee/Month
Contractor
$25
Per Contractor/Month
EOR
$500
Per Employee/Month
Globalization Partners Logo

Globalization Partners

Avg 4.6 (385 Ratings Analyzed)
About Globalization Partners
Company: Globalization Partners, Inc.
Employees: 1001-5000
Established: 2012
HQ: Boston, Massachusetts, United States
Support Offered By Globalization Partners
Email Support
Live Chat
Tutorial Videos & Documentation
Phone
Social Media

Globalization Partners is a global employment platform that lets companies hire talent in over 180 countries without setting up local entities. Acting as an Employer of Record, it handles payroll, taxes, compliance, and benefits tailored to each country’s laws. With features like automated onboarding, localized contracts, and a secure digital platform, it simplifies international hiring. Businesses can manage global teams efficiently while staying compliant, making cross-border employment smooth and worry-free.

Why we picked Globalization Partners

Globalization Partners brings structure to a market that’s often anything but simple. They’ve been managing Chinese employment for years and know how local rules shift between provinces. The process feels formal but secure, contracts, benefits, and filings all documented to the letter. It’s ideal for enterprises that care about risk management and traceability.

Pros
Fast global hiring without entity setup
Fully compliant with local labor laws
Manages payroll, taxes, and benefits
Easy-to-use digital platform
Strong data privacy and security
Offers localized benefit packages
Cons
Can be costly for small businesses
Limited control over local HR processes
Not ideal for companies wanting direct entity presence
Some features may vary by country
Check Globalization Partners current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Pricing details are not currently updated
Remote Logo

Remote EOR

Avg 4.5 (5,799 Ratings Analyzed)
About Remote EOR
Company: Remote Technology, Inc.
Employees: 1001-5000
Established: 2019
HQ: San Francisco, California, United States
Support Offered By Remote EOR
Email Support
Live Chat
Tutorial Videos & Documentation
Social Media

Remote is a global HR platform that lets companies hire, pay, and manage employees in other countries without setting up local entities. With built-in features like Employer of Record services, global payroll, local benefits, and contractor management, it simplifies international hiring. It ensures full compliance with local tax and labor laws, while offering a self-serve dashboard, time-off tracking, and equity management. Remote helps businesses grow teams anywhere in the world—legally, easily, and with full peace of mind.

Why we picked Remote

Remote is one of the few EORs that owns its own entity in China, which makes hiring smoother. Everything, from employment paperwork to tax submission, runs through its local operation. Employees can log in, view payslips, and track benefits directly. For global companies that value employee experience as much as compliance, Remote is a strong choice.

Pros
Easy global hiring without setting up local entities
Full legal compliance in multiple countries
Built-in global payroll and benefits management
Owned entities, not third-party dependent
Simple, user-friendly dashboard
Local HR and legal support available
Cons
Can be expensive for small businesses
Limited in countries where Remote doesn’t yet operate
No direct control over local employee contracts
Onboarding times may vary by region
Check Remote EOR current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Employer of Record
$699
Per employee/month
Payroll
$29
per employee/month
Contractor Management
$29
per contractor/month
Contractor Management Plus
$99
per contractor/month
Contractor of Record
From $325
per contractor/month
Papaya Global Logo

Papaya Global

Avg 4.2 (125 Ratings Analyzed)
About Papaya Global
Company: Papaya Global Ltd.
Employees: 501-1000
Established: 2016
HQ: New York, New York, United States
Support Offered By Papaya Global
Email Support
Tutorial Videos & Documentation
Phone
Social Media

Papaya Global is a global Employer of Record platform that helps companies hire and manage employees in over 160 countries without setting up local entities. It handles employment contracts, payroll in local currencies, tax compliance, and benefits tailored to each region. With a centralized platform, businesses can track workforce data, automate onboarding, and access real-time reports. Papaya also ensures strong data security and keeps hiring fully compliant with local labor laws, making global growth simpler and more efficient.

Why we picked Papaya Global

Papaya Global leans toward analytics and control. It automates payroll, files taxes through local authorities, and manages required benefits for each city. The dashboard gives finance teams full visibility into labor costs, deductions, and contribution rates. It’s not flashy, but it’s precise, and for larger organizations managing dozens of employees in China, that accuracy is a real advantage.

Pros
Centralized platform for payroll and workforce management
Ensures legal compliance and local tax handling
Offers localized benefits and contract support
Real-time data tracking and reporting
Strong data security and privacy features
Cons
May be complex for very small teams
Support response time can vary
Limited control over local employment nuances
Integration options may require technical setup
Check Papaya Global current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractor
$30
per contractor/month
Payroll
Contact for pricing
EOR
$599
per employee/month
Safeguard Global Logo

Safeguard Global

Avg 4.1 (85 Reviews Analyzed)
About Safeguard Global
Company: SafeGuard World International Limited
Employees: 1001-5000
Established: 2008
HQ: Austin, Texas, United States
Support Offered By Safeguard Global
Email Support
Live Chat
Tutorial Videos & Documentation
Social Media

Safeguard Global is an Employer of Record platform that helps businesses hire and manage international employees without setting up local entities. It handles payroll, tax compliance, and employment contracts while offering localized benefits and multi-currency payments. With support across 170+ countries, the platform simplifies onboarding, ensures legal compliance, and centralizes global workforce management. Safeguard Global makes it easier for companies to expand internationally while staying focused on growth, not red tape.

Why we picked Safeguard Global

Safeguard Global fits companies hiring across multiple Chinese regions. Its specialists monitor policy updates and regional rate changes, which saves clients a lot of research time. The platform runs payroll and compliance behind the scenes so HR teams can focus on operations. For long-term expansion in China, it offers reliability over speed, and that’s often the smarter trade.

Pros
Fully compliant payroll and tax handling
Manages both employees and contractors
Localized benefits and employment contracts
Centralized platform for HR tasks
Expert support for local regulations
Cons
Pricing not transparent
May require onboarding time for new users
Limited customization for unique local policies
Relies on third-party infrastructure in some regions
Check Safeguard Global current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractor
$299
per contractor/month
Payroll
Contact for pricing
EOR
Contact for pricing

Explore EOR Solutions for Other Countries

If you have plans to hire in any other country, don't forget to explore our best EOR country guides to find the best fit for your business.
United-States-flag
United States
26 Providers
New Zealand Flag
New Zealand
22 Providers
Canada Flag
Canada
27 Providers
Mexico Flag
Mexico
20 Providers
France Flag
France
25 Providers
Ireland Flag
Ireland
20 Providers
Italy Flag
Italy
21 Providers
Poland Flag
Poland
18 Providers
Malaysia Flag
Malaysia
23 Providers
Colombia Flag
Colombia
21 Providers
Austria Logo
Austria
20 Providers
Hong Kong Flag
Hong Kong
24 Providers
Additional EOR Solutions in China
Here are some additional EOR solutions that can be very effective in China which you may explore as well.

AYP EOR

AYP is best for companies that want to hire and manage international employees quickly, legally, and without setting up local entities.
Rating
Country Coverage
14
Starting Price
$288
Rivermate Logo

Rivermate

Rivermate is best for hiring and managing international employees legally and effortlessly—without setting up a local entity.
Rating
Country Coverage
150+
Starting Price
€299

TopSource Worldwide

TopSource Worldwide is best for businesses that want to hire and manage international employees legally without setting up local entities.
Rating
Avg 4.0 (4 Ratings Analyzed)
Country Coverage
180+
Starting Price
Custom

Native Teams

Native Teams is best for businesses that want to hire and pay remote workers legally across borders without setting up local entities.
Rating
Avg 4.5 (533 Ratings Analyzed)
Country Coverage
85+
Starting Price
$99

Omnipresent EOR

Omnipresent is best for companies that want to hire and manage global talent without setting up local entities or dealing with complex international compliance.
Rating
Avg 4.6 (860 Ratings Analyzed)
Country Coverage
180+
Starting Price
£499
Asanify Logo

Asanify

Asanify is best for businesses that want to hire and manage international employees legally and efficiently without setting up local entities.
Rating
Country Coverage
80+
Starting Price
$199

Boundless EOR

Boundless is best for companies that want to hire full-time employees internationally while staying fully compliant with local employment laws.
Rating
Avg 4.6 (30 Ratings Analyzed)
Country Coverage
28
Starting Price
$685

Horizons EOR

Horizons is best for hiring and managing international employees legally without setting up local entities.
Rating
Avg 4.4 (304 Ratings Analyzed)
Country Coverage
180+
Starting Price
$299
Teamed Logo

Teamed

Teamed is best for hiring and managing global employees without setting up local entities or dealing with legal complexities.
Rating
Avg 4.0 (45 Ratings Analyzed)
Country Coverage
150+
Starting Price
£399

Table of Contents

A Practical Guide to Using EOR Services in China

Hiring in China is exciting; you get access to a massive talent pool, especially in places like Shanghai and Beijing, where businesses scale fast.

But let’s be honest: the admin side can be a grind. If you miss a contract deadline or underpay social insurance, it’ll bite back quickly. That’s why a lot of foreign companies lean on an Employer of Record (EOR).

They become the legal employer on paper, take care of payroll and compliance, and save you from learning every rule the hard way.

Getting contracts right

One of the fastest ways I’ve seen companies get fined in China is by delaying contracts. The law is strict: if you don’t sign within one month, you could be paying double wages. Wait longer than a year and the worker is automatically permanent, whether you like it or not.

Most contracts are written in Chinese because that’s what officials recognize. You can add an English version, but make sure the contract says which version wins if there’s a conflict.

Here’s how probation usually works:

  • Short contracts? One month max.
  • One to three years? Two months is the limit.
  • More than three years, or open-ended? You can stretch to six months, but that’s it.

Anything longer than that won’t hold up if challenged.

Pay, hours, and overtime rules

Minimum wages aren’t set across the whole country. Each city decides its own rates, and the difference between, say, Shanghai and a smaller inland city can be pretty big.

The standard schedule is eight hours a day, five days a week. But overtime adds up quickly:

  • Workday overtime? 150% pay.
  • Rest day work with no compensatory time off? Double pay.
  • Public holidays? Triple pay — no exceptions.

I’ve seen small firms run into trouble just because they didn’t track hours properly. In disputes, the law almost always leans toward the employee.

Leave and holidays

Annual leave isn’t based only on the time someone’s been with you, but on their total working years. That means if someone has already worked ten years elsewhere, they walk in with more leave entitlement.

  • Less than a year of total work: no statutory leave
  • One to ten years: five days
  • Ten to twenty years: ten days
  • Over twenty years: fifteen days

On top of that, there are 13 statutory public holidays each year. The tricky bit? China often shifts weekends to make long breaks, so you might end up working on a Sunday, so everyone gets a week off for Spring Festival. It feels odd if you’re new, but it’s totally normal here.

Hiring rules you should know

Recruitment is also regulated. Job ads can’t say “male only” or “from Beijing only.” Regulators crack down hard on this, especially on gender bias. Health checks are common but have to follow official guidelines.

If you’re thinking of using agency workers, know that labor dispatch is capped at 10% of your workforce and is only meant for temporary or auxiliary roles. And unions exist; if your employees organize one, the company has to allow lawful activities.

Termination and severance

There’s no “at-will” firing here. You need a legal reason to terminate someone, like serious misconduct, continued poor performance after training, or genuine redundancy. Even then, you owe notice or pay in lieu.

Severance is standard and works like this: one month’s salary for every year of service, capped at twelve years. It’s calculated on the average salary of the past twelve months.

I’ve seen employers shocked by the bill when someone’s pay had gone up recently; the math doesn’t freeze at the old rate.

Payroll and taxes

Payroll runs monthly. Your EOR will handle: income tax deductions (IIT is progressive and includes special deductions like housing rent and kids’ schooling), plus the employer and employee contributions to social insurance and the housing fund.

Those contributions are the big cost driver. In tier-one cities, the total employer portion can add 30–40% on top of base salary. This is why you never want to just budget “salary × headcount” always ask your EOR for the full employer cost in the city you’re targeting.

Bringing in foreign hires

Hiring expats is doable but slower. The usual path looks like this:

  • First, a Z work visa
  • Then, a work permit
  • Finally, a residence permit after they arrive

That process needs notarized documents, medical checks, embassy visits, and local registration. It normally takes six to twelve weeks, sometimes more if the paperwork isn’t perfect.

By contrast, a local hire can often be onboarded in two to four weeks. I’ve seen expat starts pushed back months because a diploma wasn’t notarized properly, so triple-check the documents.

Employees vs. contractors

Calling someone a “contractor” when they work like an employee is risky here. If they have fixed hours, a manager, and company equipment, the law treats them as an employee.

Misclassification can mean fines and retroactive contributions. An EOR sidesteps this because it becomes the employer on record.

What EOR services cost

Pricing depends on the service level and who you’re hiring:

  • USD 199–350 if you just want payroll support
  • USD 350–800 for a full EOR package (payroll, social insurance, housing fund, HR help)
  • USD 800–2,000+ for expat or senior hires needing visa support and extras

Always look at the total employer cost, not just the EOR’s service fee. Shanghai’s housing fund rates alone can make the same hire much more expensive than in Chengdu or Wuhan.

Onboarding timelines

For locals, it’s pretty quick, two to four weeks if documents are ready. For foreigners, think six to twelve weeks. Embassies, medicals, and government approvals all add time.

EOR vs. setting up your own entity

Setting up a wholly foreign-owned enterprise (WFOE) can take months and involves high upfront legal and accounting costs. If you’re only bringing on a handful of people, it’s rarely worth it.

An EOR lets you hire right away and test the market. Later, if you grow beyond 10–20 staff and want full control, you can set up an entity. Many firms don’t bother because the EOR setup works fine long-term.

Things that trip companies up

Some examples I’ve seen:

  • Payroll schedules shifting because holidays were rearranged
  • Housing fund contributions in Shanghai being way higher than expected
  • Expats delayed months over one missing notarized diploma
  • Employers paying double wages because contracts weren’t signed on time

These issues aren’t rare; they happen all the time to companies new to China. A good EOR usually prevents most of them.

Final thought

China’s a huge opportunity, but it’s not forgiving if you miss the rules. From double-wage penalties to heavy contributions, compliance is everything. For most newcomers, an EOR isn’t just a convenience; it’s the only realistic way to hire safely and quickly.

Frequently Asked Questions About EOR in China

Know about about the questions you may have before you make a decision to choose your preferred EOR solution for your China hiring.
Yes — an EOR lets you legally hire and pay people in China without setting up a local company by acting as the employer on paper and handling payroll, taxes and statutory contributions.
Local hires typically start in about 2–4 weeks, while foreign hires who need Z visas and residence permits often take 6–12+ weeks depending on paperwork and embassy timing.
Yes — reputable EORs register, calculate and remit employer and employee social insurance and housing fund contributions, though rates and bases vary by city.
Most EORs offer visa and work-permit support, coordinating documents, medicals and local steps, but you should confirm what’s included and how much of the process they manage end-to-end.
Costs vary widely by service level and city, but expect a rough ballpark from around USD 199–350 for basic payroll up to USD 350–800 for full EOR services, with higher fees for expats or complex cases.
No — China enforces employment protections strictly and misclassification can lead to fines and back payments, so treat worker status conservatively or use an EOR to mitigate that risk.
Manjuri-Dutta
Article By: Manjuri Dutta

Manjuri Dutta is the co-founder and Content Editor at Employer Records, a platform specialized in discovering best Employer-of-Record services for global hiring. She brings a thoughtful and expert voice to articles designed to inform HR leaders, practitioners, and tech buyers alike.

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