China Payroll
Investment Environment in DongGuan

Investment Environment in DongGuan

Area2,465 km2 (952 sq mi)
Population 8,220,207
Nominal GDP (total)¥948 billion/$ 101billion
CPI ( 2021)101.700
Average Salary (per month)¥5199
Social Security Fund ( according to average salary)¥805.85

Dongguan is a major manufacturing hub, although it suffered a significant loss of economic activity from the impact of the 2008 financial crisis. The largest industrial sector is the manufacturing of electronics and communications equipment; international companies with facilities in Dongguan include DuPont, Samsung Electronics, Coca-Cola, Nestlé, and Maersk.

China Payroll can provide you assistance for drafting strong employment contracts that are compliant with local regulations.

Labor Laws in China

Working hours in China

The People’s Republic of China operates with a standard five-day working week that should not surpass 8 hours of work per day or 44 hours per week. Companies typically run on an 8 am to 6 pm schedule with a one-hour lunch break.

China social security in DongGuan

Insurance entitlement

Employees, referring to Residents legally employed by enterprises, public institutions, social organizations, individual businesses, and other organizations legally registered in the Mainland.Five types of insurance, including the basic pension, medical insurance, work-related injury insurance, unemployment insurance, and maternity insurance for employees.
This will be compulsory under the measures.
Residents legally engaged as a sole trader in the Mainland; and who are flexibly employed and have obtained the residence permits needed for Residents.Two types of insurance, including basic pension and basic medical insurance for employees.
This will not be compulsory under the new measures.
Residents living in the Mainland who have obtained the residence permits for Residents but are not employed.Two types of insurance, including basic pension and basic medical insurance for urban and rural residents.
This will not be compulsory under the new measures.
Hong Kong, Macao, and Taiwan students studying in the Mainland colleges.One type of insurance, ie urban and rural residents basic medical insurance.
This will be compulsory under the measures.

Individual income tax

China has adjusted tax brackets and changed residency rules in order to reduce the tax burden on low-income earners, with new special additional deductions available for resident taxpayers.

The Individual Income Tax is calculated on an annual basis. We will automatically withhold taxes in advance on a monthly basis on the accumulated income and deductions. Individuals may have additional taxes or tax returns to claim through the annual settlement process.

Paid time off

Under 1 year of employmentno-leave entitlement
1-10 years of employment5 days of paid leave annually
10-20 years of employment10 days of paid leave annually
20+ years of employment15 days of paid leave annually
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