HR and HR Software Guide

Country Overview

The Chinese economy, one of the fastest growing economies of the 21st century, now ranked as the second largest economy in the world, is currently valued at a GDP of $12.24 trillion. With China’s “one belt, one road” initiative, effectively merging its foreign and economic policy, promotion of using the Chinese Renminbi for the use of settlements has increased. The country is increasingly playing an influential role in the global economy. It has been the largest contributor to global growth since the financial crisis of 2008.

Currency: Renminbi / Chinese Yuan

Principal Languages: Mandarin Chinese; there are 275 indigenous languages across the country’s 23 different provinces.

Government: The Central People’s Government forms 1 of 3 interlocking branches of power, the others being the Communist Party of China and the People’s Liberation Army

Capital City: Beijing

Major Cities: Anhui, Fujian, Gansu, Guangdong, Guizhou, Hainan, Hebei, Heilongjiang, Henan, Hubei, Hunan, Jiangsu

The standard work schedule in China is 40 hours per week, based on 5 days and 8-hour each day. The law makes it mandatory that employees receive at least 1 full day rest during the week, although most employers provide an additional day off usually on Saturdays and Sundays. According to the provision of the Labor Law, employers can extend working hours for production or operational needs as long as the labor union (if any), and the employees give their consent. Employees who don’t have a standard work schedule can work more than 160 hours a month excluding the maximum overtime of 3 hours-a-day. High-ranking managerial staff, sales staff, field personnel, security personnel, and other employees can get flexible work-time systems whose nature of work does not suit the standard working hour system.

Employees who have provided services continuously for more than 1 year are entitled to receive paid annual leave. The amount will depend on the tenure of their service—years in the workforce—not just their years with the current employer.

If an employee suffers a non-work-related illness or injury, the length of the sick leave entitlement depends on the total years of work experience and tenure with the current employer.


The paid holiday schedule in China is as follows:

  • New Year’s Day: Jan. 1-2
  • Spring Festival: 3 days, usually between late January and mid-February
  • Tomb Sweeping Day: 1 day, usually either April 4, 5 or 6
  • International Labor Day: May 1
  • Dragon Boat Festival: 1 day, usually in May or June
  • Mid-Autumn Festival: 1 day, usually between mid-September and mid-October
  • National Day: 3 days in early October

Employees also get additional public holidays from the government for long holiday weeks, known as “Golden Weeks,” particularly applicable during the Spring Festival and the National Day holidays. Employees who need to work on a holiday are entitled to get 300% of pay.

Leave for Sickness or Work-related Injury
If an employee suffers a non-work-related illness or injury, the length of the sick leave entitlement depends on the total years of work experience and tenure with the current employer.

Maternity Leave
In China, employers must offer maternity leave benefits according to the “Special Rules Concerning the Labor Protection of Female Employees.” As China has ended the 1-child policy, all the regions have moved to increase leave times at work for couples having children. In 2016, maternity leave in Beijing was extended up to 128 days for a first or second child. Shanghai and Guangdong province followed suit earlier in the year, as did many other provinces and municipalities all over the country.

Overall, about 20 provinces, autonomous regions, and municipalities have amended their regulations on family leave. Usually, women are entitled to maternity leave for a minimum of 128 days, which they can take 15 days before a child’s birth. The longest period of maternity leave is 180 days (in Fujian), and the shortest is 128 days. In Beijing, the leaves can even be extended up to 7 months if the employer allows it. For every additional child, 15 more days are granted as leave.

Paternity Leave
If a woman gives birth to her first child at the age of 24 or older and complies with the PRC family planning policy, paternity leave is approved to the father for 3 to 30 days depending on the region.

Sick Leave
Employees who must stay away from work due to a non-work-related injury or sickness, are entitled to get their regular salary for the first 15 days they do not come to work. If they remain absent longer than that, Social Security will pay the sick leave.

Employers are liable to provide social insurance benefits to their employees including foreign workers holding work permits. The social insurance benefits provided are:

  • Old-age pension insurance
  • Medical insurance
  • Occupational injury insurance
  • Maternity insurance
  • Unemployment Insurance, and
  • Housing funds

The amount of employer and employee contribution varies from one fund to another. Overall, the maximum salary that is taken into account for calculating contributions is 3 times the average local annual salary as declared by the local government.

Statutory Benefits

  • Maternity leave
  • Paternity leave
  • Sick leave
  • Statutory paid annual leave
  • Overtime
  • Social insurance
  • Pension
  • Medical insurance
  • Work related injury insurance
  • Unemployment insurance
  • Maternity insurance

Supplemental Benefits

  • Vacation and Paid Time off
  • Company car
  • Childcare
  • Job training and tuition
  • Performance bonus
  • Stock options
  • Dental insurance

Simplify workforce management in China with Mihi HR Software.

  • Accelerate employee onboarding with established workflows and guided processes that allow your new employees to hit the ground running from day one.
  • Improve employee time tracking and leave management while ensuring compliance with local labor laws and work-time regulations.
  • Store, manage, and track employee data on a single, secure system. Improve access and visibility, while built-in guidelines help you maintain legal compliance and audit readiness.
  • Turn workforce data into actionable insights with extensive HR reporting and analytics. Make better, more informed decisions and accurately assess the status of your global teams.
  • Provide your employees with the support they need with 24/7 access to our Employee Helpdesk.
  • One HR software for your global needs
  • Ensured compliance with in-country employment and labor laws
  • Connectivity and integrations with ERP and Payroll systems
  • Better workforce data and increased visibility of global teams
  • Supporting 170+ countries and localized in 17+ languages
  • Improved employee experience with employee self-service functionality and 24/7 employee support

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