PEO Services in China

A co-employment model for companies that want to share the employer relationship in China rather than hand it over entirely. Worth knowing up front: true PEO co-employment is far less established in China than in the US, so we will tell you honestly whether PEO or an EOR genuinely fits, and place you with the right vetted partner.

  • Independent advice
  • Vetted partners
  • Honest positioning

What a PEO does in China

A Professional Employer Organisation works on a co-employment model. You and the PEO partner share the legal employer responsibilities for your China-based staff: you keep direction and day-to-day control, while the partner administers payroll, individual income tax, and the five-insurances-one-fund contributions for your specific city under a shared arrangement.

01

Shared employer role

You and the PEO partner share the legal employer responsibilities. You keep direction and control; they handle payroll, individual income tax, and the five-insurances-one-fund contributions for your city.

02

More direct control

PEO suits companies that want to retain more direct control of the employment relationship than a full EOR arrangement allows. In China, true co-employment is uncommon, so EOR is usually the better fit.

03

Honest recommendation

For most companies hiring in China, EOR is simpler. We will tell you honestly whether PEO genuinely fits your structure, or whether EOR serves you better.

How PEO works in China, step by step

From assessing the fit to a compliant co-employment arrangement.

01 — Assess the fit

We map your structure, headcount, target city, and how much control you want to keep, and tell you honestly whether PEO or EOR serves you better. No product push.

02 — Set up co-employment

If PEO fits, we place you with a vetted China partner and structure the shared employer arrangement correctly for your city.

03 — Onboard your people

Compliant Chinese employment terms under the Labor Contract Law, with the administrative employer functions handled by the partner.

04 — Payroll & compliance

Individual income tax, five-insurances-one-fund contributions for your specific city, and statutory filings handled monthly, while you keep day-to-day direction.

What PEO in China costs

As with EOR, two parts: the statutory cost of employment in your specific city (genuinely different Shanghai to Shenzhen to Beijing) and the partner service fee.

Employer social insurance (Shanghai, representative)

Roughly 30.7% to 34.4% of the contribution base in Shanghai, used here as the representative city: pension, medical, unemployment, and work-injury insurance, plus the Housing Provident Fund, all administered under the shared employer arrangement.

Minimum wage (2026)

Set city by city, not nationally: CNY 2,740/month in Shanghai, CNY 2,520/month in Shenzhen for 2026.

Income tax (employee)

Seven brackets from 3% up to 45% on cumulative annual comprehensive income, withheld at source as part of the shared payroll administration.

PEO partner fee

A service fee for the co-employment administration. Under a shared employer arrangement, China’s five statutory schemes plus the housing fund, priced by city, still have to be administered correctly by someone. We benchmark across our vetted network, typically 15 to 25% below going direct.

Why arrange it through Bradford Jacobs

Why companies arrange China PEO through us rather than going direct to a single provider.

We tell you if PEO fits your needs

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

We benchmark across our vetted network for rates typically 15 to 25% below going direct, and renegotiate for you at renewal.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades of placements

Two decades placing and managing employment arrangements across global markets, with the local, city-specific knowledge that prevents costly China compliance mistakes.

  • Co-employment expertise
  • Honest fit advice
  • Right structure

We flex as your structure changes

PEO, EOR, and your own entity sit on a spectrum, and the right point shifts as you grow. We advise on the path and manage the moves, EOR to PEO, or either to your own Chinese WFOE, as your China presence develops.

  • EOR, PEO or entity
  • Transitions managed
  • Right fit as you grow

The employer duties a China PEO shoulders

Whichever model you use, the underlying Chinese rules are the same. Under a PEO arrangement, the administrative employer functions are handled for you.

Working time, leave & contracts

Compliant Chinese employment contracts and working-time rules (8-hour, 40-hour standard week, overtime capped at 36 hours a month, tiered statutory annual leave starting at 5 days after one year). Individual income tax and five-insurances-one-fund contributions withheld and filed correctly for your city. Statutory benefits, notice, and severance applied properly.

Statutory protections & exits

Statutory notice, probation, and the protections Chinese employees carry under the Labor Contract Law, since dismissal is restricted to a fixed statutory list rather than at-will, all handled under the shared arrangement. The value is the same as with EOR: the compliance is handled by people who do it daily, for your specific city. The difference is simply how much of the employer role you keep.

What a PEO arrangement covers

The co-employment administration covers all of this, under one transparent fee.

Compliant contract

A compliant Chinese employment contract under the Labor Contract Law, issued and maintained for you.

Payroll & filings

Monthly payroll run, with individual income tax and five-insurances-one-fund contributions calculated, withheld, and filed each month for your city.

Statutory benefits

All statutory benefits administered: tiered annual leave, sick pay, parental leave, notice and severance.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how PEO co-employment works in China.

What is the difference between PEO and EOR in China?

With an EOR, the partner is the sole legal employer of your China-based staff. With a PEO, you and the partner share the employer relationship, you keep more direct control, they handle the administration. In China, true co-employment is uncommon, so EOR is the usual route; PEO suits specific structures.

For most companies, EOR is simpler and faster, especially with no Chinese entity. PEO fits when you want to share rather than outsource the employer role, or have a structure that calls for it. We assess your situation and recommend honestly.

It depends on the structure. Some co-employment arrangements assume or work alongside your own Chinese entity, such as a WFOE. If you have no entity and want none, EOR is usually the cleaner route. We will confirm which applies to you.

The administrative employer functions, payroll, individual income tax, the five-insurances-one-fund schemes for your specific city, and statutory filings, are handled by the partner. We make sure the arrangement is structured so responsibilities are clear and Chinese law is met.

The statutory employer cost, genuinely different by city (roughly 30.7% to 34.4% of the contribution base in Shanghai, used as the representative example) plus a partner service fee for the co-employment administration. We benchmark across our network for pricing typically 15 to 25% below going direct.

Yes. These models sit on a spectrum and the right one changes as you grow. We advise on the path and manage transitions, EOR to PEO, or either to your own Chinese WFOE, as your China presence develops.

Not sure whether PEO or EOR is right for China?

Tell us your structure, headcount, and target city and we will give you an honest recommendation, usually within a day, plus pricing you will not get direct. No product push, just the right fit.

Tax and labour data verified July 2026 (State Taxation Administration, MOHRSS, Shanghai Municipal Human Resources and Social Security Bureau). Figures are set city by city and change; we confirm the current position for your specific city when we scope your hire.