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What an employer of record does in China, what changed in 2025 and 2026, what an employee in Shanghai really costs, the Labor Contract Law rules that apply, and published EOR prices compared. Figures checked 9 November 2026.
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An employer of record (EOR) lets a foreign company hire in China without setting up a wholly foreign-owned enterprise (WFOE). The EOR’s Chinese entity signs the labour contract, runs payroll and pays social insurance and the housing fund, while you direct the work.
This guide covers what changed for employers in China in 2025 and 2026, what an employee in Shanghai really costs, the Labor Contract Law rules an EOR has to follow, published EOR prices, and when a WFOE makes more sense. For the basics, start with our guide to employers of record.
An employer of record in China is a Chinese company that legally employs your staff, runs payroll and pays social insurance and the housing fund, so you can hire without a WFOE. In Shanghai, employer contributions add about 33% to a CNY 30,000 monthly salary, and published EOR fees start at USD 349 to USD 599 a month per employee.
An employer of record in China is a company with its own Chinese entity, or a licensed local partner, that becomes the legal employer of your staff while you manage their day-to-day work. China’s Labor Contract Law applies to employing units such as enterprises in China (article 2), so a foreign company with no Chinese entity cannot sign the labour contract or register for social insurance itself.
The EOR signs a written contract with each employee, runs monthly payroll and individual income tax withholding, pays social insurance and the housing fund in the employee’s city, and handles terminations under Chinese law. You pay the EOR the employment cost plus a monthly service fee. Our global hiring guide explains how this compares with contractors and your own entity.
Three changes matter most: social insurance can no longer be waived, the retirement age is rising, and Shanghai’s contribution base went up in July 2026.
In Shanghai, employer social insurance and housing fund add about 32.7% to salary: CNY 9,810 a month on a CNY 30,000 salary, for a total of about CNY 39,810 before any EOR fee. Rates are set city by city, so Beijing, Shenzhen or Chengdu will differ.
| Cost line (Shanghai) | Employer rate | CNY a month |
|---|---|---|
| Gross salary | 30,000 | |
| Pension | 16% | 4,800 |
| Medical, including maternity | 9% | 2,700 |
| Unemployment | 0.5% | 150 |
| Work injury | 0.2% (lowest band; 0.2% to 1.9% by industry) | 60 |
| Housing fund | 7% (top rate) | 2,100 |
| Employer contributions | 32.7% | 9,810 |
| Total before EOR fee | 39,810 |
Compare China with other markets in our minimum wage by country and 13th-month pay guides, and see how payroll runs across borders in our global payroll guide.
Published EOR prices for China start at about USD 349 to USD 599 a month per employee, before the employment cost. China is one of the costlier EOR markets, so ask for a China-specific quote: several providers say prices vary by country.
| Provider | Published starting price | In CNY a month | Note |
|---|---|---|---|
| Rivermate | USD 349 | 2,328 | Pricing varies by country and by local or expat hire |
| Multiplier | USD 459 (billed annually) | 3,062 | USD 499 billed monthly; add-ons may apply |
| Deel | USD 599 | 3,995 | Starting price across its EOR countries |
| Remote | USD 599 (annual contracts) | 3,995 | Starting price for annual contracts |
Peorient compares employer of record providers for your country, team size and budget. Tell us the city, roles and salaries, and we send side-by-side China quotes. Free for companies.
Every employee in China needs a written labour contract signed within one month of starting, with probation and non-compete terms kept inside legal limits. All of these come from the Labor Contract Law:
For rules that apply across countries, see our global HR compliance guide.
China has no at-will employment: the employer needs a ground the law recognises, and most terminations carry severance of one month’s salary per year of service.
Source: Labor Contract Law of the PRC. An EOR should manage the process and paperwork, but agree in your contract who pays severance and dispute costs.
Use an EOR to test the market or employ a small team quickly; set up a WFOE when you need to invoice Chinese customers, hold assets or build a large, permanent team.
| Employer of record | Your own WFOE | |
|---|---|---|
| Who employs staff | The EOR's Chinese entity | Your company |
| What you need first | A service contract with the EOR | Incorporation, licences, bank account and registrations |
| Cost basis | Employment cost plus a monthly fee per employee | Employment cost plus your own setup, accounting and HR costs |
| Can sell or invoice in China | No | Yes |
| Best for | Pilots, small teams, uncertain headcount | Large, long-term operations |
Many companies start with an EOR and transfer staff to a WFOE later. If you are comparing several countries at once, our EOR services guide and Remote alternatives cover the main global providers.
Choose an EOR that owns its Chinese entity or names its partner, covers the cities you hire in, and shows every social insurance and housing fund line on the invoice. Ask each provider:
Hiring elsewhere in Asia too? See our Philippines hiring guide; for Europe, our France EOR guide.
Yes, through an employer of record. Chinese labour contracts are signed by employing units in China (Labor Contract Law, article 2), so the EOR's Chinese entity employs your staff while you direct their work.
Published starting prices run from USD 349 a month per employee (Rivermate) to USD 599 (Deel and Remote), plus the employment cost. In Shanghai, employer contributions add about 32.7% to salary. Peorient is affiliated with Rivermate and may earn a referral fee.
Pension 16%, medical including maternity 9%, unemployment 0.5% and work injury 0.2% to 1.9%, plus the housing fund at up to 7%, on a monthly base of CNY 7,546 to CNY 37,731 from 1 July 2026 (Shanghai rate table; The Paper).
Six months, for contracts of three years or more or open-ended contracts. Shorter contracts allow one or two months, and contracts under three months allow none (article 19).
One month's salary per full year of service, and half a month for service under six months, with caps for high earners. If the termination is unlawful, the employer pays twice that (articles 47 and 87).
No. Since 1 September 2025, agreements to avoid social insurance premiums are invalid under the Supreme People's Court's second labour dispute interpretation (China Law & Practice).
From 15 to 23 February 2026, nine days in total, with 14 and 28 February as working days (Beijing municipal government).
We compare EOR options for your roles, salaries and city and send you a shortlist in 2 to 3 business days. Get a free shortlist, or read our guide to employers of record first.
Written by
Director of Global Hiring Advisory · 6+ years experience
Arjun runs the global hiring advisory practice at Peorient. He previously led APAC operations at an EOR startup and advised at Singapore's EDB, overseeing workforce launches in 18 countries across EOR, PEO, and subsidiary models.
