General Guides
Regional Guides
Starter Guides
Effectively managing your Human Resources and Payroll is essential for companies operating in multiple jurisdictions. Whether you are a local or global business in China, foreign entities are required to comply with strict regulations, register their employees with relevant authorities, and contribute to the Chinese social security system and individual income tax.
MSA Asia takes care of payroll in China for international companies including timely employee payments, insurance, employment law, pensions, and benefits administration.
This saves global companies substantially on the time and cost involved in setting up a global payroll.
Check out our fully customizable, Interactive Payroll Software
Our China Payroll Services
- Payroll in China: We offer a full range of payroll services in China to reduce time and costs for your organization, streamline your monthly operations and ensure compliance with Chinese regulations. Our integrated China payroll services include monthly payroll calculation, social security individual income tax registration, benefits planning, expat salary cost reimbursements and total cost overview preparation for management.
- Global Mobility: Through our experience in supporting foreign companies and employees with China payroll services and tax questions about assignments in China, we understand the issues that matter to you and your employees. We provide advice on topics such as individual- and company tax compliance and optimization, tax equalization policies, social security implication, double taxation avoidance and totalization agreements, and many other China payroll subjects.
- Immigration and Visa Applications: All non-Chinese nationals are required to have relevant documentation in order to work and stay in Mainland China. Our expert team supports throughout the entire process of visa application and immigration. We support with pre-application advice to ensure all relevant documents are accurate, process the application, maintain close communication with the immigration bureau and track the application process.
- HR Management: We support our clients in China with monthly compliance services, as well as taxation advice and legal support with respect to their workforce. These includes support and advice with employment contracts, the employee handbook, hiring and termination support, and the structuring of employee benefits.
- EOR/PEO Employment: Our dispatch services provides a solution to enter the Chinese market without the immediate need to invest in- and establish a legal entity in China. Our China dispatch service includes easy onboarding and immediate availability of the required personnel on the ground. As your legal Professional Employer Organization (PEO) provider, we manage your payroll, insurance, benefits, risk mitigation, tax compliance and ongoing employee support while the client can focus on their day-to-day operations.
- Termination Support: Our employee termination services pay careful attention to local labor laws and regulations. Our experts ensure compliance throughout the termination process, minimizing risks and protecting your company’s interests. We provide guidance on legal requirements, severance packages, and dispute resolution, facilitating smooth and compliant employee exit.
Benefits of our HR & Payroll Services
Benefits of our HR & Payroll Services
- Digitized: We fully leverage the latest developments, including eFapiao systems. Additionally, all HR and payroll services can be seamlessly integrated into your headquarters’ ERP or HRMS.
- Interdisciplinary: MSA Asia offers a one-stop shop for professional services and project management. Our experienced HR consultants work together with legal experts, management consultants, and tax advisors, ensuring coordinated expertise and efficient project execution.
- International Team: With over 10 nationalities at MSA Asia, we not only understand Chinese regulations but also consider foreign perspectives, ensuring that both sides are taken into account.
E-Fapiao
China is leading the way in digital invoicing with its Fully Digitalized E-Fapiao. Nationwide implementation began December 1, 2024, following a successful pilot program. The government’s Leqi Platform provides a unified system, allowing qualified businesses to connect directly with the tax authority via APIs for automated data exchange. The goal is full digitalization of invoice management, converting all paper invoices to digital format and tracking their lifecycle, with the e-fapiao holding the same legal validity as traditional paper fapiao.
Probation Period in China
In China, a probation period is a legally allowed trial period for employers to assess a new employee’s suitability for the role. It’s not mandatory but is commonly used. The length of the probation period is regulated and depends on the length of the employment contract, with a maximum of six months. During probation, both the employer and employee have specific rights and obligations, and termination rules differ from those governing regular employment. Understanding the nuances of probation periods in China is crucial for both employers and employees to ensure compliance and protect their respective interests.
Holiday Pay in China
In China, if you work on a public holiday, you are entitled to triple pay for the hours worked. This means you receive your regular salary plus an additional 200% of your regular salary for those hours, totaling 300% (or triple pay). This is a legal requirement and applies to all employees.
Severance Payments in China
Severance payments in China are legally mandated under certain circumstances when an employment contract is terminated. These payments are typically calculated based on the employee’s length of service and salary. Specific regulations govern the situations that trigger severance pay obligations, the calculation method, and the amount due.
Minimum wages in China
Minimum wages in China are regulated by local governments and vary significantly across different provinces and cities. Each region sets its own minimum wage standard, taking into account factors like cost of living, economic development, and average income levels. These minimum wage standards are typically expressed as a monthly or hourly rate. Employers are legally obligated to pay their employees at least the local minimum wage, and failure to do so can result in penalties.
FESCO Services in China
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