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Employer of Record (EOR) in China
China is an emerging economy, as a result, American businesses can enjoy substantial market opportunities throughforeign investment. Therefore, sourcing excellent global management services with an EOR in China and PEO is critical.
China has massive potential for economic growth for foreign companies. It offers access to a large market with considerable savings in labor costs.
Any company considering doing business in China would be well advised to hire SERVIAP because differences in the Chinese political and cultural environment as compared to much of the rest of the world come with risks and troubling uncertainty for foreign investors.
What Makes China Unique?
The Chinese people are known for possessing a strong work ethic. And tech startups enjoy success in China and grow larger year after year. It’s anticipated that by 2030 China will become a techno-utopia with Chinese characteristics, replete with “deep tech” such as cloud computing, artificial intelligence (AI), self-driving cars and cutting-edge chips. Many Chinese are trained in the science, technology, engineering and mathematics (STEM) fields, making the country a great option for outsourcing technology positions, accounting, and finance.
While the population of English speakers is growing, it’s currently just over 1% of the Chinese. English and SERVIAP can bridge that language barrier and other essential business dealings, allowing easy access to the giant Asian market.
The number of English speakers goes up with each Chinese citizen who studies abroad. China has long directed its young people to pursue an international higher education in Western countries, including the United States, Canada, the United Kingdom and Australia. These students come back with impressive degrees in computer science, business, or engineering.
There’s a large existing and valuable workforce in China. In fact, there’s a treasure trove of workers with knowledge and experience in:
- Artificial Intelligence
- Machine Learning
- Agriculture and mining
China is ripe for outsourcing opportunities. However, salaries are typically lower than what can be expected in Western countries, especially in smaller cities outside of Shanghai or Beijing.
SERVIAP can help with your global expansion needs. Contact us today to learn how you can expand your business with EOR in China.
What is an EOR in China
In a country such as China, SERVIAP offers turnkey access to the market because SERVIAP is already registered as an entity there, so your company doesn’t have to map out the intricacies of how to accomplish that.
SERVIAP can serve as your company’s Employer of Record (EOR), whilst handling all things human resources. The SERVIAP professional platform lets you access skilled employees without the hassle and huge time investment of setting up your company as a separate legal entity.
SERVIAP streamlines it for you. From recruiting and hiring employees on through all the Human Resources related tasks, including payroll management, staying within legal compliance and taxes.
By bringing SERVIAP onboard as your EOR in China, we become the actual employer of those foreign employees. As a result, your company benefits from Chinese employees’ expertise and work product without jumping through all the regulatory hoops.
How to Begin Hiring in China
Hiring people and conducting business in China can pose challenges, especially for small and medium-sized companies. While SMEs may make up the majority of firms in existence, they don’t have the financial reserves to set up entities in multiple countries.
SERVIAP allows you to expand your business abroad without incorporating it in multiple countries.
The basics of the employment relationship are laid out within the Labour Law of the People’s Republic of China and must be adhered to rigorously.
Similarly, the tax law can be a challenge to follow. For example, the tax law in China is a legal code based on the country’s Constitution, which adjusts the relationship between the state and members of society where rights and obligations in taxation are concerned.
Many requirements under the Chinese Labour Contract must be included:
- Employment term and probation period term
- Job description
- Definition of working hours, rest hours and vacation days
- Severance packages for overtime work and termination of employment
- Safety at work conditions
- Social benefits
- General information: Employee name, ID, company name and address, etc.
A labor contract must be written clearly and concisely in Chinese to be legally valid.
A contract that fails to meet these requirements puts the employer at risk. SERVIAP can keep you in good standing.
To hire any type of employee, independent and full-time workers, China requires specific expected duties and responsibilities and written employment contracts.
Due to the high level of education among Chinese citizens, the company is ripe for outsourcing opportunities. However, salaries are typically lower than what can be expected in Western countries, especially in smaller cities outside of Shanghai or Beijing.
The law requires any overtime must not exceed 3 hours in a day. There’s a limit of 36 hours of overtime each month. Overtime hours on the weekend must be paid twice the employees’ typical salary. And if an employee must work on a national holiday, they are paid three times their regular wage.
Employee Benefits and Paid Leave
Of course, China is a vast country, and wages vary, although almost always at lower rates than in America.
In China, an employee’s average annual income is 3,51,600 Yuan (approximately USD 54,422)
Actual wages vary widely depending on the location of the individual, how much experience they have, and the work they perform. For example, people in smaller cities may earn much less, while those in larger cities make more.
There’s a specific formula of tiers to calculate an employee’s required paid time off (PTO):
- Employee has more than one and less than ten years of cumulative work experience: 5 days annual paid leave
- Employee has more than ten and less than 20 years of cumulative work experience: 10 days annual paid leave
- Employee has more than 20 years of cumulative work experience: 15 days of annual paid leave
In addition, the Social Insurance Law covers almost any circumstance an employee may be in, including:
- Pension insurance
- Unemployment insurance
- Medical insurance
- Work-related injury insurance
- Maternity insurance
- Housing fund
Partner with Serviap Group as Your Employer of Record in China
SERVIAP is a leading Employer of Record (EOR) ready to help your business expand operations throughout the world. We help find the employees and opportunities to allow your business to grow and experience success.
EOR in China is a model of co-employment. SERVIAP assumes all responsibilities for your foreign employees, allowing you to focus on the strategic activities of your organization.
Contact us today to learn more about how you can expand your business with an employer of record in China.