Working in China: the contract, the hours, the tax and the limits of your permit

Yes, as a Dutch national you can work in China as an employee, with the same labour rights as Chinese employees, once your work permit is in. How you get it is in the work permit for China. This article is about what applies afterwards: a written contract within a month, or your employer pays double wages; working days of eight hours; overtime at least 150%. The pitfall is your permit itself: it is tied to your employer and your job, and work outside it counts as illegal employment.

What must your employment contract contain?

The Labour Contract Law requires a written contract. If there is none at the start, it must be in place within a month. If it takes longer, the employer pays twice the wage from the second month until the end of the first year; after a year without a written contract it counts as an open-ended contract.

Rule	What the law says
Probation with a contract of 3 months to 1 year	at most 1 month
Probation with 1 to 3 years	at most 2 months
Probation with 3 years or more, or open-ended	at most 6 months
Number of probation periods	one per employer
Notice by you	30 days in writing; during probation 3 days
Severance	one month's wage per year worked

You may terminate immediately if the employer does not pay your wages on time or in full, or does not pay your social premiums. Foreigners must join Chinese social insurance; see healthcare in China.

How many hours do you work, and what do you get for overtime?

Rule	What the Labour Law says
Working time	at most 8 hours a day and 44 hours a week on average
Rest day	at least one a week
Overtime	as a rule at most 1 hour a day, for special reasons 3, and together at most 36 hours a month
Premium for extending the working day	at least 150% of wages
Work on a rest day without a replacement day off	at least 200%
Work on a statutory holiday	at least 300%
Paid holiday	after a year of continuous work

What do you pay in tax?

China taxes whoever stays in the country 183 days or more in a tax year as a resident. From the annual income, ¥ 60,000 is deducted first, plus the deductions. The employer withholds tax monthly; if an annual reconciliation is needed, or you had income from abroad, you file from 1 March to 30 June of the following year. As a foreigner you can choose, up to and including 2027, tax-free allowances for housing, language lessons and school fees, instead of the ordinary deductions. How this combines with your Dutch pension is in AOW, pension and tax in China.

What may you not do with your work permit?

Working outside your permit is illegal employment. Working without a work permit and work-type residence permit, or beyond what your work permit allows, counts as illegal employment. The fine is ¥ 5,000 to ¥ 20,000, and in serious cases five to fifteen days of detention follow as well. So arrange a side job, freelance work or a move to a new employer on paper first.

Employers may not employ foreigners without a work permit. If you change jobs, your permit must belong to your new employer before you start there; otherwise you are working outside your permit.

Can you work in China as self-employed?

Not on a work permit. For entrepreneurs Beijing has a separate residence permit, among others for foreigners who want to invest or start an innovative business. For it the city asks, among other things, for a business plan, a bank statement or deposit certificate of more than ¥ 50,000, and proof of intellectual property, an investment or an invitation from a partner in Beijing. For most Dutch people a job with an employer that sponsors remains the passable route.

In Vertrekklaar this is phase 2 of 5 of the journey, step 2.1: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to China or go straight to step 2.1 in the open plan.