Hiring platform for Employer of Record & PEO in China
The RocketG platform gives you ultimate transparency when hiring in China with access to verified PEO & Employer of Record providers.
Simple, compliant, cost-effective, revolutionary.
Employer of Record & PEO in China in a nutshell
From contract negotiations to monthly payroll processing - hire staff in China in a matter of days
Hire without a company
Establish a team without having to incorporate a WFOE or Rep Office
Lightning fast setup
Get up and running anywhere in mainland China in as little as 24 hours
Full labor compliance
Access providers licensed by the Ministry of Labor and Social Security
Reduce admin and compliance costs with end-to-end employment solutions
RocketG integrates with your current HR platforms and tools
A Guide to Hiring in China
China’s economy continues to be a global powerhouse attracting international companies looking for growth opportunities.
Companies wanting to expand to China face several market entry options, each with their own legal and operational challenges. The Chinese government imposes strict rules on foreign investment, but the advent of PEO in China has made hiring individuals there much simpler.
Hiring via PEO is quicker and more cost effective than establishing an entity and engaging external companies (HR agencies, lawyers, accountants, and so on) to ensure compliance.
Independent contracting and freelancing is illegal in China, so the only realistic options are hiring directly (where the foreign company would need a local Chinese entity) or using a PEO.
The three main types of employment contract are:
PEO can often offer the same level of flexibility as contracting and helps companies remain compliant with local laws.
The social security system in China is so comprehensive and impacts many areas of every day life.
Mandatory contributions are to the social insurance and Housing Funds. Other options for compensating employees, such as private medical insurance, stock options, cash bonuses, work-related allowances, and wellness benefits are subject to complex rules (including personal taxation rules), but usually can be provided.
Companies need to observe wages and hours rules according to local Chinese standards, not foreign company standards.
This includes public holiday observance and other annual leave policies, but adjustments may be able to be made to align foreign and Chinese holidays as far as possible.
It is a complex process to onboard employees in China, with much documentation needed and comprehensive registration procedures required at the local labor and tax authorities.
There are numerous payroll components in China and each component rate and application is decided based on the employee’s income, location, and other key factors.
Typical payroll components include:
- Base salary
- Social insurance and Housing Fund contributions
- Special deductions
- Expenses reimbursement
Termination in China is very sensitive and foreign companies need to take great care not only to ensure a legally compliant termination, but also one that allows the employee the opportunity to save face and depart the company in an amicable manner.
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