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The Active Population in Figures

Working Conditions

Legal Weekly Duration

40 hours

Retirement Age

60 years for men, 50 to 55 years for women depending on the profession. Retirement will be gradually raised to 63 years for men, 58 years for female managers, and 55 years for female manual workers by 2040.

Working Contracts

Legal provisions govern work contracts and collective agreements, but may be supplemented by individual negotiations. Formalities regarding employment contracts and recruiting conditions are strict, while dismissal constraints are rather flexible. There are 3 types of contracts: permanent contracts, fixed term contracts and project-specific contracts.

Labour Laws

Doing Business: China, to obtain a summary of labour regulations that apply to local entreprises

Cost of Labour

Minimum Wage

China does not have a single nationwide minimum wage; instead minimum wage levels are set by each province and municipality under respective local human resources and social security bureaus, resulting in different regional rates (e.g., several thousand CNY per month in major cities).

Average Wage

The average urban annual salary is projected to be approximately CNY 129,000 for 2026, which equates to approximately CNY 10,750 per month.

Social Contributions

Social Security Contributions Paid By Employers:

Contributions vary across the country and for different schemes. China’s Social Security System consists of 5 mandatory insurance schemes (pension fund, medical insurance, industrial injury insurance, unemployment insurance, and maternity insurance) and a housing fund (only applicable to Chinese employees). In Beijing, the employer's share of social insurance contributions amounts approximately to 27.8% to 29.5%:

• Pension 16%
• Medical expenses 10%
• Unemployment 0.8%
• Maternity 0.8%
• Work-related injury 0.2% to 1.9%

Social Security Contributions Paid By Employees:

Contributions vary across the country and for different schemes. China’s Social Security System consists of 5 mandatory insurance schemes (pension fund, medical insurance, industrial injury insurance, unemployment insurance, and maternity insurance) and  a housing fund (only applicable to Chinese employees). In Beijing, the employee's share of social insurance contributions amounts approximately to 10.2%:

• Pension 8%
• Medical expenses 2%
• Unemployment 0.2%
• Maternity 0%
• Work-related injury 0%

Social Partners

Employer Associations

CISASME - Chinese Association of International SME Cooperation

Social Dialogue and Involvement of Social Partners

While worker protests and work stoppages occur regularly, the right to strike is not protected by law. China has not ratified core International Labour Organisation conventions on freedom of association and collective bargaining. The enforcement of existing labour regulations is reportedly insufficient. The only trade union recognised by the Chinese Communist Party is the All China Federation of Trade Unions (ACFTU). As independent trade unions are illegal, some claim that the ACFTU can be an effective voice for workers.

Labour Unions

Labour Regulation Bodies