Out2China provides China employer of record (EOR) services. The written arrangement should identify the Chinese employing company and set out responsibilities for the labour contract, payroll, tax and social insurance, while your team directs day-to-day work.
Out2China's standard EOR fee is US$298 per employee per month, plus a one-time onboarding fee of US$298. Salary and employer statutory costs are extra. The final quote depends on the employee's city, pay, status and required services.
Written by: Janey Fan, International Payroll and Tax Specialist, founder and principal of Xinlinghang
Business review: Out2China Team
Factual review: Out2China Team
Last reviewed: 7 September 2026
Out2China has provided local HR services in China since 1997. Employsome includes Out2China in its 2026 Top 10 list of China EOR providers.
What our China EOR service covers
An EOR proposal should explain the work, not just quote a monthly fee. Out2China’s agreed scope can cover employment documentation, onboarding, payroll, individual income tax withholding, social insurance, housing fund administration and routine employee changes. The service agreement sets out the tasks, deadlines and contacts for your assignment.
Your team remains responsible for the role, salary decisions, commercial goals and day-to-day supervision. For work permits, unusual benefits, an employee transfer or a proposed exit, ask the team to confirm the arrangements and whether any additional fees apply in the written proposal. Contract duration, notice requirements and any early termination charges are explained in writing before signing. The project’s service agreement governs the final terms.
From recruitment to employment in China
Out2China can support two distinct stages of a China hire: finding the person and arranging their employment. If you have not selected a candidate, start with our China recruitment services. Once you choose the candidate, we review the role, city, employment arrangements and budget for EOR support. Recruitment and EOR have separate scopes and fees; the proposal should explain the handover between them. Already have a candidate? Start with the employment review rather than repeating the recruitment stage.
What does EOR mean in China?
EOR stands for Employer of Record. In plain English, an overseas business needs someone working in China before it has opened its own company there. It uses a local employment arrangement so the person can be hired and paid under an agreed service structure.
The Chinese company named in the proposal signs the labour contract. The overseas business continues to direct the employee's day-to-day work and set commercial goals. The EOR team handles the onboarding, payroll, individual income tax, social insurance, changes and offboarding included in the agreement.
There is an important catch. EOR is a service label, not a single structure defined and used in exactly the same way throughout Chinese employment law. A different provider may use a different employing company, contract arrangement or service scope.
Read the proposal, service agreement and labour contract together. The company names should match, and the documents should give a consistent account of who does what and what you will pay.
China's Labour Contract Law requires a written labour contract and lists mandatory terms such as the work, workplace, remuneration and social insurance. The actual arrangement still has to be reviewed for the employee, city and contract in question. This page provides general information, not legal advice. For the employment-law boundary, read our guide to China EOR and labour dispatch rules.
Is EOR the right starting point?
EOR is worth assessing when you have a China hire in mind but no local employing company. It is not a substitute for every part of setting up and operating a business in China. If local trading, invoicing or other business activities are central to your plan, review those requirements separately before choosing the employment route.
| Situation | Route to assess |
|---|---|
| A candidate is ready, but you have no China employing company | EOR, subject to review of the assignment |
| You still need to find a candidate | Recruitment first, then a separate employment decision |
| Your China company already employs the team | Payroll or HR administration support |
| You need your own long-term local business operation | Entity setup and direct employment alongside the business requirements |
Already have a China company? Your need may be payroll or PEO-style HR support rather than EOR. Start with the EOR and PEO comparison and confirm which company will remain the employer. This page focuses on EOR; it is not a separate PEO service offer.
Work out the real cost before comparing fees
An EOR quote usually contains three main parts: the employee's salary, statutory employer costs and the EOR service fee. There may also be charges for onboarding, non-standard contracts, immigration, benefits, expenses or a transfer from another provider.
The service fee is usually the most visible number and the easiest to compare. The mistakes tend to sit elsewhere: statutory costs may use different assumptions, or one quote may omit an item that another includes.
Two providers may use a different city, contribution base or rate. A low quote may simply be incomplete. A higher one may show the employer costs more honestly. The full China EOR cost guide explains the main cost drivers and comparison method.
A simple example: same salary, different city, different budget
We borrowed the comparison method from a real proposal, but this is not a client's bill. We removed the client, employee, role, headcount and original salary. To keep the example easy to follow, both cities use a gross monthly salary of RMB 10,000. We include only pension, medical and maternity rates supported for September 2026, plus a 5% housing-fund scenario.
An anonymised scenario. Gross monthly salary is RMB 10,000. The chart includes verified pension, medical and maternity rates and a 5% housing-fund scenario. Unemployment and work injury are excluded. A formal quote adds them using the employing company's current assessed rates in the employee's city. The monthly US$298 EOR fee is not included in the RMB bars.
| Cost item | Jiangmen example | Guangzhou example | What it tells you |
|---|---|---|---|
| Gross monthly salary | RMB 10,000 | RMB 10,000 | The salary is identical |
| Employer pension insurance | 16.00% / RMB 1,600 | 16.00% / RMB 1,600 | Guangdong filings have used 16% since January 2025 |
| Employer medical and maternity insurance | 6.00% / RMB 600 | 6.85% / RMB 685 | The two cities publish and apply these items differently |
| Employer housing fund | 5.00% / RMB 500 | 5.00% / RMB 500 | Both examples use 5% for a like-for-like comparison |
| Employer statutory subtotal | RMB 2,700 | RMB 2,785 | Verified items only; Guangzhou is RMB 85 more per month |
| Salary plus employer statutory cost | RMB 12,700 | RMB 12,785 | Excludes unemployment, work injury, individual income tax, employee deductions, benefits and one-time fees |
| EOR service fee | US$298 per employee per month | US$298 per employee per month | Shown separately and not converted into the RMB total |
Jiangmen and Guangzhou are compared here to show how assumptions change a budget. It is not a suggestion to register an employee in a cheaper city. Use the employee's real work location.
For a fair comparison, both quotes need the same city, salary, month and included items. The lower number sometimes means that one line is missing.
Keep RMB statutory costs and the US dollar service fee separate. If finance needs one converted budget, record the exchange rate and the date. Someone revisiting the calculation two months later should be able to reproduce it.
Jiangmen's 2026 notice sets the employer medical insurance rate at 6%, including 0.5% for maternity insurance. Guangzhou publishes 6% medical insurance and 0.85% maternity insurance separately. See the official Jiangmen employee medical insurance rates and Guangzhou medical and maternity insurance funding standards.
The standard housing fund range in both cities is 5% to 12%; this example uses 5% in each city. See the Jiangmen housing fund rules and Guangzhou housing fund rules. Guangdong's 16% employer pension rate appears in the official 2025 filing notice.
An independent September 2026 source review did not find a current basis strong enough to apply the general 0.8% employer unemployment rate or the 0.4% Category II work-injury benchmark in this example. The chart and table therefore exclude both items. A formal quote adds them using the employing company's current assessed rates in the employee's city.
For an initial estimate, try the China employment cost calculator and the social insurance and housing fund calculator. A formal quote must still use the employee's circumstances and the employing company's current assessment.
How we prepare an EOR assignment
- Confirm the hire. Share the role, city, salary, candidate status and intended start date.
- Review the arrangement. Identify the employing company, service scope and any case-specific questions.
- Agree the budget and documents. Confirm the quote, contracts, responsibilities and payroll funding requirements.
- Prepare onboarding. Collect the required information and agree a start date after the necessary checks.
- Run the agreed monthly process. Set deadlines for payroll changes, approvals, funding and employee support.
What you decide and what the service team handles
An EOR does not run your business. It does not choose whom you hire, set salary, manage performance or decide whether someone should leave.
| Work | Your company usually handles | EOR team usually handles | Confirm together |
|---|---|---|---|
| Recruitment and work | Selects the person; sets the role, salary, reporting line and goals | Explains local document and process requirements | Whether the arrangement fits this employee |
| Employment documents | Approves commercial terms and working arrangements | Prepares or coordinates the documents in scope | Special terms and the final version |
| Monthly payroll | Submits and approves salary, bonus, leave and expenses by the cutoff | Calculates, pays and supplies the agreed reports | How late or disputed data will be handled |
| Employee data | Supplies accurate, authorised information | Receives, uses and stores it under the agreement | Access and handover when the relationship ends |
| Day-to-day work | Manages goals, performance and the team | Handles the agreed employment administration | Whether a management decision affects the employment relationship |
| Changes and exits | Supplies facts, makes the business decision and approves it | Coordinates the agreed local process | Employee communication, settlement and timing |
If every line of a responsibility table says "shared", the table is not doing its job. Each task needs a lead, and each problem needs someone authorised to make the call.
Moving from another EOR takes more than changing a supplier
The employee keeps working and still needs to be paid. An old employment arrangement does not end simply because a spreadsheet shows a transfer date.
A move may involve employee communication, the current contract and notice terms, the last payroll with the old provider, year-to-date payroll records, leave, expenses and unsettled amounts. The plan should also say who transfers the data and system access, and when.
Do not close the old process before the new one has been tested. If a provider promises there will be no interruption, ask for a handover list with an owner and date beside every item.
Hypothetical scenario: confirming the employment arrangement
Imagine that you are hiring a sales manager in China.
The interviews are over and you have agreed the salary. Then the candidate sends a message: "I have resigned from my current job and can start next month. Which company will sign my employment contract?"
That is when you realise your business does not have a company in China.
You may already have two EOR quotes. One is cheaper but does not name the employing company. The other lists a monthly fee but says nothing about when payroll money must arrive. The candidate asked one simple question, yet you now need answers about the employer, funding, social insurance, payroll and the start date.
An EOR arrangement should answer those questions for this particular hire. It should show who employs the person in China, how salary and statutory payments are handled, and who deals with the monthly administration after the employee starts.
This scenario combines questions that have appeared repeatedly in real enquiries. It does not describe any one client or employee.
The candidate hopes to start in three weeks. Instead of promising the date as soon as it finds an EOR, the company asks both providers for a one-page answer covering:
- the company that will sign the labour contract
- how the bonus will appear in the documents and monthly payroll
- the monthly fee, onboarding fee and pass-through amounts
- the dates for employee documents, contract approval, funding and first payroll
- the day-to-day contact and the escalation contact
One provider replies with the company names, contacts and dates. The other sends another marketing brochure.
The first provider may not have the lowest monthly fee, but the owner can now decide whether the proposed start date is credible and whether the first salary is likely to be paid on time. That clarity is worth more than a small difference in the fee.
Eight questions to ask before signing
- Which companies sign the service agreement and the labour contract?
- Does the proposed arrangement fit this employee's city, nationality, role and working pattern?
- What does the monthly US$298 fee include, and what costs extra?
- What are the final deadlines for the employee and our company to send information and approve documents?
- When must payroll funds arrive, in which currency, and against which document?
- What happens when salary, bonus or employee data changes close to the cutoff?
- Who handles routine questions, and who handles urgent ones?
- Which records will we receive after payroll, and how will they be handed over if we change provider or open our own company?
If you are already screening providers, use the longer China EOR provider due diligence checklist.
Frequently asked questions
Who signs the labour contract?
The Chinese employing company named in the EOR arrangement usually signs it with the employee. The proposal, service agreement and labour contract should show the same company names and division of work.
How long does onboarding take?
Onboarding can take as little as 14 days from a signed agreement, and typically around 30 days, depending on documentation, approvals and first-month funding.
How much does a China EOR cost?
Out2China's standard fee is US$298 per employee per month, plus a one-time onboarding fee of US$298. Salary, employer statutory costs and non-standard services are extra. The final budget depends on the city, pay, employee and scope.
What must the company prepare before the first salary?
You normally need complete employee and bank details, final salary and bonus data, company approval, payroll funds and an agreed reporting schedule. Put a deadline beside each item.
What is the difference between EOR, PEO and payroll outsourcing?
An EOR arrangement may provide a local employing company when you do not have one in China. PEO-style support normally serves a business that already has a China company and wants help with continuing HR operations. Payroll outsourcing is narrower and usually focuses on payroll calculations, tax withholding, social insurance and reports.
Can an EOR arrange a work permit?
Do not rely on a simple yes. The answer depends on the candidate, role, city and proposed arrangement. The plan should identify who is responsible and which documents are needed.
What happens when an employee leaves?
Start with the facts, labour contract and proposed course of action. Then plan company approval, employee communication, the final payroll and settlement. A qualified professional should review any conclusion that depends on Chinese employment law.
Can we move an employee from another EOR?
You can first review the existing arrangement and the proposed new one, then build a transfer plan. It normally covers employee communication, payroll history, data handover, unpaid amounts and a fallback date.
When should we consider a WFOE instead?
Put a WFOE or another suitable entity into the comparison when you expect a long-term operation, direct employment, local invoicing or local commercial contracts. Consider the ongoing management as well as the setup cost. Our EOR versus WFOE guide sets out the practical trade-offs.
Do we need our own China company before using an EOR?
EOR is an option to assess when you do not have a China employing company. The proposal should name the contractual employer and explain the arrangement for your employee. Your commercial activities may raise separate requirements, so an EOR decision should not be treated as approval for every part of your China business plan.
Can you help with a multi-role recruitment project in China?
Out2China can discuss a China recruitment service scope covering candidate sourcing, screening, interview coordination and offer management. Agree the roles, deliverables and exclusions in the recruitment proposal. EOR employment is a separate decision once candidates are selected; it is not included automatically in recruitment fees.
How do social insurance and housing fund contributions affect the hiring budget?
Employer contributions form part of the budget in addition to salary and service fees. The estimate depends on the employee’s city, contribution bases and applicable arrangements. Use the social insurance and housing fund calculator for initial planning, then confirm the assumptions and current requirements for the individual hire before signing.
What should a recruitment and ongoing HR service proposal include?
Ask for separate recruitment and employment scopes, the employing company, fees, handover steps and named contacts. For ongoing support, check payroll inputs, approvals, funding dates and how employee questions or changes are handled. A single provider can coordinate the stages, but the responsibilities and exclusions still need to be written down.
Plan the full cost, not just the service fee. Start with salary, city-specific employer contributions, the service fee and any agreed one-off charges. Use the China employment cost calculator for an initial budget, then confirm the assumptions in a written proposal. Tell us the role, city, salary range, candidate status and intended start date.