Salaries and benefits for employees in China: the complete 2025 guide

As the world’s second largest economy, China has a dynamic labour market with its own particularities in terms of wages, benefits and working conditions. This article provides a detailed overview of these crucial aspects for employees and employers operating in the country.

Wage setting in China

In China, wage determination is a process that combines national legislation, local regulations and individual negotiations.

How much is the Chinese minimum wage?

Unlike in many countries, the minimum wage in China is not set at national level. Instead, it is determined by local governments (cities, provinces and districts) according to the specific socio-economic conditions of each region.

This approach leads to significant variations from one region to another. There is a distinction between the minimum monthly wage for full-time workers and the minimum hourly wage for part-time workers. Here are some examples of minimum monthly wages in major cities:

The minimum wage is revised periodically by the local authorities, usually at least every two years, in accordance with the China Employment Promotion Plan. Employers are obliged to respect the minimum wage in force and to avoid any form of wage discrimination. Social security contributions are calculated on the basis of gross salary and also vary from province to province.

What factors influence wages in China?

Several key factors influence wage levels in China:

• Region: as mentioned above, regional disparities are marked. Large cities such as Beijing and Shanghai offer higher salaries than less developed provinces.
• Qualification and experience: the most highly qualified and experienced employees are paid more. Higher levels of education explain the rise in average salaries in China.
• Spoken languages.
• Sector of activity: certain sectors, such as finance, technology and medicine, are known for offering more attractive salaries. In these strategic sectors, companies are looking to recruit the best profiles.
• Nationality: expatriates often receive higher salaries to offset the cost of living and attract international skills.
• Type of company.

What social benefits does being an employee in China offer?

Employee benefits in China consist of a compulsory social security system supplemented by optional benefits.

China’s compulsory social security system, known as the “5+1” system

China’s social security system is based on five main insurance schemes and a housing fund, financed jointly by employers and employees. Contribution rates vary from region to region. Here are the components of the system:

• Old-age insurance: contributes to employee pensions, with pooled contributions to finance current pensions.
• Health insurance: covers a large proportion of medical costs, including hospitalisation and medicines, and often includes maternity insurance.
• Unemployment insurance: provides temporary financial assistance in the event of involuntary job loss.
• Industrial accident insurance: protects against work-related injury or illness, covering medical expenses, rehabilitation and disability benefits.
• Maternity insurance: provides financial support for employees during pregnancy and childbirth.
• Housing Fund (“+1”): helps employees save for the purchase of a home, with contributions from both the employer and the employee.

Optional benefits offered by certain companies in China

The gross salary is negotiated at the time of hiring and must be stipulated in the employment contract. A variable component based on performance or bonuses (monthly, quarterly or annual or linked to specific events, such as Chinese New Year) may be included. To increase their attractiveness, companies may also offer additional benefits, such as a 13th month’s salary or specific bonuses, to retain their employees. In China, it is common practice to offer additional benefits such as :

• Allowances to cover expenses such as accommodation, food, transport and children’s schooling.
• Additional insurance: companies may offer additional medical cover or private insurance, particularly for foreign employees.

Paid leave in China: holidays and public holidays

Employees also benefit from compulsory leave, including :

• Annual leave (based on length of service).
• Maternity/paternity leave.
• National public holidays.

The length of annual leave is determined by the employee’s seniority, not within the company but in the world of work:

• 1 to 10 years’ professional experience: 5 days’ paid holiday.
• 10 to 20 years’ professional experience: 10 days’ paid holiday.
• More than 20 years’ professional experience: 15 days’ paid holiday.

.Working hours and overtime in China

The legal working week in China is 8 hours a day and 40 hours a week, but an employee in China works an average of 44 hours a week. Overtime is permitted, but limited to 3 hours a day and 36 hours a month, with compulsory pay. During the week, overtime is paid at 150% of the basic hourly wage.

The rules of employment in China: deciphering them with the right partners

The Chinese labour market is characterised by a combination of government regulations, local practices and negotiations. Understanding the framework and practices surrounding employment is essential for companies wishing to recruit, retain and effectively manage their teams in China.

VVR International helps companies to structure and optimise their HR policy in China. Whether it’s a question of local recruitment, legal compliance, salary negotiation or freelance administration, our team of HR experts can guide you in making the right choices and building a sustainable HR strategy tailored to the local situation.

Building a Franco-Chinese team: Tips for successful integration

Integrating foreign employees into Chinese teams is essential to the effective deployment of business in China, whether they are based locally or working remotely. This is not only crucial to the success of the business, but also an enriching opportunity for the company’s managers. By understanding and respecting local cultural specificities, companies can not only facilitate the building of strong Franco-Chinese teams, but also develop strong cohesion within the team, which will prove to be a decisive factor in productivity.

In this article, we’ll explore practical tips and tried-and-tested strategies to help your foreign employees integrate more easily into everyday life in China. From understanding fundamental cultural values to adapting communication and management styles, every aspect will be covered. The aim is simple: to turn the challenges of integration into opportunities for growth and successful collaboration.

Understanding Chinese working culture

Integrating into a Chinese team requires a thorough understanding of local cultural values and practices. In China, the working culture is shaped by traditions and norms that may seem very different from those in Western countries. Understanding these cultural differences and respecting them on a daily basis is key to successful integration. In this section, we will look at three key aspects of Chinese work culture: hierarchy and respect for elders, the values of collectivism and harmony, and indirect communication styles.

The importance of hierarchy and respect for elders

The Chinese work culture is deeply rooted in traditional values that emphasise hierarchy and respect for elders. Unlike Western cultures, where equality and horizontal collaboration are often valued, the Chinese context favours a clear hierarchical structure. Decisions are generally taken by superiors, and subordinates are expected to follow these directives.

Key values: teamwork, harmony and respect

Teamwork is another cornerstone of Chinese work culture. Unlike Western individualism, success is often seen as a collective effort. The well-being of the team and the company takes precedence over individual interests. This translates into a strong emphasis on collaboration and harmony within the team. Maintaining good relations with colleagues and avoiding direct confrontation are highly valued behaviours.

Differences in communication styles: indirect vs. direct

Communication in China is often more indirect than in Western cultures. Within the company, employees tend to avoid direct confrontation and prefer to use more subtle means to express their opinions or disagreements. For example, the translation of the word “yes” can lead to misunderstandings if it is misinterpreted. In China, it is sometimes used to mean “I understand” rather than “I agree”. This nuance in communication can create misunderstandings if it is not properly understood.

Strategies for successful integration

Here are some tried and tested strategies and innovative approaches that take into account cultural specificities to simplify the integration of foreign employees into a Chinese team and strengthen cohesion within the company.

Intercultural training and cultural awareness

Cross-cultural training is essential to help foreign employees understand and adapt to Chinese cultural norms. This training should cover aspects such as work habits, social protocols and communication expectations.

Innovative approach: Immersive workshops and virtual exchanges

Organise immersive workshops that simulate typical Chinese work situations and social interactions. In addition, anticipate your employee’s arrival by encouraging upstream exchanges with their Chinese colleagues. To do this, you can offer time for discussion during which the future employee can ask questions and where everyone can share their experiences and work practices.

Mentoring and incubation by Chinese employees

Mentoring is an effective way of helping foreign employees adapt more quickly. By assigning a Chinese mentor to each new arrival, you create a supportive relationship that makes it easier to learn cultural and professional nuances.

Reverse mentoring programme

As mentioned earlier, reverse mentoring can also be beneficial. In this model, young Chinese employees mentor foreign managers, bringing a fresh perspective and reversing traditional roles. This encourages a mutual exchange of knowledge and skills, promoting greater cultural understanding on both sides.

Incubation: supporting your employee step by step

In addition to freelance administration, some companies specialising in HR offer an incubation service. At VVR International, we can carry your employee: in this case, we take charge of his or her legal and administrative management. To help them get up and running quickly, our teams welcome them and support them as they set up in China. With the possibility of working on our premises, they will have local contacts, training and a workspace that will enable them to quickly take charge of their new role within your company.

Organising social activities to strengthen ties

Social activities are crucial to strengthening relationships between employees and creating a sense of camaraderie and trust. Regular events allow employees to get to know each other outside the workplace.

Innovative approach : Intercultural team-building events

To take this a step further, team-building events dedicated to intercultural issues in the workplace can help to highlight cultural differences and raise your employees’ awareness of their implications for their day-to-day work, while at the same time strengthening links between teams. For example, cooking workshops in which employees prepare traditional Chinese and Western dishes together, or cultural excursions to explore the local culture can be interesting team-building activities to strengthen the bonds between French and Chinese employees.

Overcoming common challenges

Even with well-planned integration strategies, companies can encounter difficulties when integrating foreign employees into Chinese teams. To avoid these pitfalls, a good knowledge of the points to watch out for can help to achieve a successful and lasting integration.

Managing language differences and misunderstandings

Language barriers can often lead to misunderstandings and frustration. Although many professionals in China speak English, it is essential to recognise the nuances and challenges of multilingual communication.

Technological tools and language training

Technological tools such as real-time translation applications and multilingual communication platforms are invaluable in making day-to-day exchanges more fluid. To take things a step further, language courses tailored to the needs of your foreign employees can be a worthwhile investment in improving the skills of your staff. These courses will focus on terms specific to your sector and expressions commonly used in the workplace. Today, there is a wide range of language learning software with virtual reality functions available, which can be an interesting alternative to traditional language courses. This makes learning more flexible and less expensive.

Adapting management styles to bring them into line with Chinese expectations

Western management styles can sometimes be perceived as too direct or individualistic in China. Adapting these styles so that they are more in tune with local cultural expectations is crucial to effective management.

Innovative approach : Intercultural leadership workshops

An inclusive work environment is essential for employee satisfaction and productivity. This means respecting cultural differences and promoting an atmosphere of respect and collaboration.

Organise cross-cultural leadership workshops where foreign managers can learn to adapt their management style to suit Chinese expectations. These workshops can include role-playing, case studies and group discussions on best management practices in a cross-cultural context. Integrate e-learning platforms to offer continuous training modules and resources that can be accessed at any time.

Conclusion: successful integration is a worthwhile investment

Integrating foreign employees into Chinese teams is essential for success in China. By understanding the working culture, adopting innovative integration strategies and overcoming common challenges, companies can create a harmonious and productive working environment. Successful integration has a direct impact on a company’s overall performance.

VVR International and its HR department can help you create or strengthen your teams in China. Thanks to our teams and our coaching and portage services, we can take charge of your employee and support him or her in settling in and integrating, both culturally and legally and administratively. With VVR International, you benefit from local expertise and personalised support to ensure the successful recruitment and integration of your employees in China.

Recruiting in China and Europe: key differences and tips for adapting

Recruitment is a key success factor for companies. It is no longer enough just to find talent, you also need to be able to attract and retain it. The aim of this article is to compare the recruitment processes in China and Europe in order to identify the major differences and suggest ways in which European companies wishing to succeed in the Chinese market can adapt. By understanding these nuances, companies will be able to refine their recruitment strategies and maximise their chances of success.

The recruitment process in Europe

Recruitment in Europe reflects a certain corporate culture and managerial practices influenced by economic, social and cultural factors. Traditionally, European companies focus on academic qualifications and professional experience. The most common recruitment methods include advertising on job boards, recruitment agencies and job fairs.

Candidates are generally selected through a number of rigorous stages:

• CV sorting,
• Telephone interviews,
• Face-to-face interviews,
• Sometimes technical or psychological tests.

Qualifications and experience play a key role in the selection process. In addition, interpersonal skills and the ability to work in a team are increasingly valued criteria.

Finally, compliance with local regulations, such as anti-discrimination laws and personal data protection standards, is essential to ensure a transparent and fair recruitment process. European companies are also investing in diversity and inclusion programmes to attract a wider range of talent.

The recruitment process in China

The recruitment process in China is strongly influenced by specific cultural and historical aspects. Unlike in Europe, where academic qualifications and experience are paramount, in China personal networks (or ‘guanxi’) and recommendations play a key role in recruitment. Guanxi’ refers to the importance of personal relationships and connections, which can often play a key role in securing a job.

Recruitment methods in China include popular online platforms such as Zhaopin and 51job, and even social networks such as WeChat. Companies often use job fairs and partnerships with universities to attract young talent. The market for skilled jobs is dynamic and highly competitive, requiring both companies and candidates to be highly responsive. It should be noted that chasing competitors is a widespread practice, even for less skilled positions.

Companies are competing to attract the best talent. To do this, they adapt their job offers to the expectations of candidates, highlighting the stability of the job, the friendly management and the company’s reputation in China and internationally. They do not hesitate to highlight the opportunities for development within the company and the possibility of training.  Finally, companies must also take account of regional and sectoral differences to adapt their recruitment strategies.

Recruitment: what do they have in common?

In China, as in Europe, the importance of employer branding and personal development opportunities is growing. Companies need to focus on creating an attractive working environment and offering compelling value propositions to attract the best talent.

For European companies wishing to succeed in China, it is essential to adapt to these cultural specificities. Building strong relationships, understanding the importance of ‘guanxi’, and adapting local recruitment methods are key strategies. Investing in local market knowledge and working with local experts can also greatly facilitate the process.

Conclusion: Summary and recommendations for success in China

To recruit successfully in China, it is essential to understand the cultural and structural differences with Europe. In Europe, the emphasis is on academic qualifications and professional experience. In China, personal relationships, known as “guanxi”, and recommendations are crucial. To optimise recruitment in China, it is important to establish and maintain solid personal networks. It is advisable to use local recruitment platforms and Chinese professional social networks. To maximise your chances of success, to build or strengthen your local team and thus ensure the success of your development, it is advisable to call on the services of a specialist local company such as VVR International.

VVR RH by VVR International

VVR International has a dedicated Human Resources department. Our team of experts will advise and support you at every stage of the recruitment process to ensure that you find the ideal profile. Once selected, VVR International, via its freelance administration service, can manage your employee administratively and legally. You don’t even need to have a legal entity in China!