Under the Immigration Ordinance (Cap. 115), non-Hong Kong permanent residents generally require an employment visa/entry permit to work in Hong Kong.

The Government of the Hong Kong Special Administrative Region provides seven Talent Admission Schemes for skilled professionals seeking to work and reside in Hong Kong, namely:

• Top Talent Pass Scheme
• General Employment Policy (for non-Mainland residents)
• Admission Scheme for Mainland Talents and Professionals (for Mainland residents)
• Immigration Arrangements for Non-local Graduates
• Quality Migrant Admission Scheme
• Technology Talent Admission Scheme
• Admission Scheme for the Second-Generation of Chinese Hong Kong Permanent Residents

For specific requirements of the admission schemes, please visit the website of the Hong Kong Talent Engage (HKTE): https://www.hkengage.gov.hk/en/how-to-apply-for-a-visa.

As regards job-seeking channels, the Hong Kong Labour Department (LD) offers a range of free employment services, including the Interactive Employment Service website (https://www2.jobs.gov.hk/0/en/) and mobile application. One-stop employment information for incoming talents is also available on HKTE’s online platform. In addition, the LD has launched the Dedicated Webpage on Higher Education Employment to help degree-level job seekers search and apply for suitable positions.

Generally, employers are required to contribute to the Mandatory Provident Fund (MPF) Scheme for an employee aged 18 to 64 who has been employed for a continuous period of 60 days or more, unless the employee is an exempt person. Employees and employers are each required to contribute 5% of the employee’s income to the employee’s MPF account, subject to the minimum and maximum relevant income levels.

Employers must make mandatory contributions for their employees from their own funds and deduct the employees’ contributions from their relevant income for each contribution period (which generally refers to the wage period).

For monthly paid employees, the current minimum and maximum relevant income levels are $7,100 and $30,000 respectively.

For more information, please visit the website of Mandatory Provident Fund Schemes Authority:https://www.mpfa.org.hk/.

There is generally no difference in the basic taxation principle for salaries tax between non-residents and residents. Both residents and non-residents are entitled to personal allowance, and to married person’s allowance and child allowance in respect of their spouses and children residing outside Hong Kong.

The form of employment also affects tax obligations. If you are engaged in a “non-Hong Kong employment”, the Assessor will assess your salaries tax liability according to the number of days you spend in Hong Kong during each year of assessment. In the great majority of cases, people coming to work in Hong Kong are engaged in a “Hong Kong employment”. If you are engaged in a “Hong Kong employment”, all of your earnings must first be included in your assessable income.

If a Mainland resident satisfies the exemption condition of “present in Hong Kong for not more than 183 days”, and meets the relevant conditions under the Arrangement between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, the resident’s income derived from Hong Kong may be exempted from salaries tax.

Hong Kong has also entered into a similar arrangement with Macao. For details, please refer to the Arrangement between the Hong Kong Special Administrative Region and the Macao Special Administrative Region for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance.

Tax computations depend on individual circumstances. For detailed information, please visit the website of the Inland Revenue Department of the Government of the Hong Kong Special Administrative Region: https://www.ird.gov.hk/eng/welcome.htm

Yes. Under the Employees’ Compensation Ordinance (Cap. 282), if an employee sustains an injury or dies by accident arising out of and in the course of employment, the employer is liable to pay compensation.

The employer shall complete the prescribed form and report the accident to the Labour Department (LD) within 14 days (7 days in the case of death) after the accident, irrespective of whether the employer is liable to pay compensation.

Regarding compensation, the employer shall make periodical payments (i.e. sick leave pay) equal to four-fifths of the difference between the employee’s monthly earnings before the injury and the monthly earnings during the period of temporary incapacity.

In addition, the employer shall reimburse medical expenses within 21 days after the employee submits receipts for such expenses, and shall pay the amount of compensation stated on the Certificate of Compensation Assessment within 21 days after its issuance by the LD.

If the employer has not taken out employees’ compensation insurance or has failed to handle the case, the employee may directly report it to the Employees’ Compensation Division of the LD or apply for assistance from the Employees Compensation Assistance Fund.

For more information, please visit the website of the LD of the Government of the Hong Kong Special Administrative Region: https://www.labour.gov.hk/eng/legislat/content1.htm.

Termination of employment shall comply with the relevant requirements under the Employment Ordinance (Cap. 57).

For a continuous contract of employment where there is no probation period or the probation period has ended, the length of notice should be the period specified in the contract (but not less than seven days). If the contract does not specify the length of notice, the notice period should not be less than one month.

Either party may choose to make a payment in lieu of notice. The amount shall be equivalent to the wages which the employee would have earned during the notice period.

The termination payments usually include outstanding wages, payment in lieu of notice (if applicable), outstanding annual leave pay, pro rata end of year payment, long service payment or severance payment (if applicable), and any other payments specified in the contract.

The employer shall make the termination payments as soon as practicable. If an employee is re-engaged on less favourable terms or the employer unilaterally varies the terms of employment contract without a valid reason, the employee may be regarded as “constructively dismissed” and is entitled to claim termination compensation against the employer.

For more information, please visit the website of the Labour Department of the Government of the Hong Kong Special Administrative Region: https://www.labour.gov.hk/eng/faq/cap57d_whole.htm.

Non-Macao residents seeking to work in Macao must apply for a work permit in accordance with the specific requirements under Law No. 21/2009, “Law for the Employment of Non-Resident Workers” (Lei da contratação de trabalhadores não residentes).

Generally, non-Macao residents seeking employment in Macao must obtain a work permit issued by the competent authorities in advance and shall not commence to work in Macao without work permit.

Under the specific requirements on entities applying for work permits, applications for importation of non-resident workers must be submitted by a registered company in Macao to the Non-resident Workers Employment Department (Departamento de Contratação de Trabalhadores Não Residentes) under the Labour Affairs Bureau (Direcção dos Serviços para os Assuntos Laborais) of the Macao Special Administrative Region (SAR) Government. Such applications must be submitted by employers; and applications submitted by individuals will not be accepted.

The following applications are handled and approved by different competent departments:

• Work permit applications for non-resident workers in Macao are examined and approved by the Non-resident Workers Employment Department of the Labour Affairs Bureau; and
• Applications for entry and stay of non-resident workers in Macao are approved by the Public Security Police Force (Corpo de Polícia de Segurança Pública (CPSP)).

Therefore, in addition to the abovementioned work permit, employers must apply for a “Non-resident Worker’s Identification Card” (“Non-resident Worker’s Card”, commonly known as the “Blue Card”) for each approved imported non-resident worker. This card serves as an essential proof of the non-resident worker’s legal employment in Macao.

To afford greater flexibility to employers, applications of Non-resident Worker’s Card may be submitted by employers, their legal representative or an authorised employment agency in Macao to the Division of Residence and Stay of the Residence and Stay Affairs Department (Divisão de Autorização de Residência e Permanência, Departamento para os Assuntos de Residência e Permanência) under the CPSP. For details of the application procedures, please refer to the official website of the CPSP of Macao.

Non-local residents (non-resident workers) working in Macao are not required to make contributions to social security. Relevant requirements are administered in accordance with Law No. 4/2010, “Social Security System” (Regime da Segurança Social).

Macao’s social security system mainly covers Macao SAR residents. According to the abovementioned Law, only local employees and employers in an employment relationship are required to make mandatory social security contributions. Non-local residents (non-resident workers) holding the “Blue Card” are not subject to mandatory contributions, and are therefore not required to make personal social security contributions.

It should be noted that although non-resident workers are not required to make social security contributions, their employers have the statutory obligation to pay the employment fee for non-resident workers to the Social Security Fund for the non-resident workers they employ. The fee is solely borne by employers and is non deductible from the salaries of non-resident workers.

For enquiries regarding the Employment Fee for Non-resident Workers payable by employers, or for confirmation of employment status, please visit the official website of the Social Security Fund or call 2853 2850 during office hours.

Income earned by non-resident workers in Macao is subject to salaries tax in accordance with the Salaries Tax Regulation (Regulamento do Imposto Profissional). Specifically, a tax incentive policy was introduced for the 2025 tax year (with tax normally payable in 2026). Relevant core requirements are as follows:

Allowance and tax deduction

According to Article 19 of Law No. 25/2024, the salaries tax allowance for the 2025 tax year is MOP 144,000 with a 30% deduction in the amount of tax payable. Non-resident workers may also benefit from this key relief measure under the salaries tax regime.

Tax rates

Salaries tax is calculated at progressive rates across six tiers, ranging from 7% to 12%. It should be noted that, in practice, the portion of annual taxable income below the MOP 144,000 allowance is exempt from tax, and any excess income is chargeable to salaries tax at the applicable progressive rate at the relevant tier. Following the tax computation, a deduction equal to 30% to the tax payable is made to arrive at the final payable tax amount.

Reporting obligations

Employers have the primary reporting obligations to submit a register (Form M3/M4) containing the remunerations paid or disbursed to casual workers and employees and their respective tax numbers in the previous year, between January and February of each year. For example, income earned in the 2025 tax year is normally reported between January and February of 2026. Additionally, employers must remit in full the tax withheld from their employees’ remunerations to the Financial Services Bureau of Macao on a quarterly basis.

Whether employees are required to report their income depends on their sources of income. Group 1 taxpayers (i.e. employed individuals who work in Macao for others in any occupation) are, in principle, required to submit the Income Declaration Form (Form M/5) with details of all remuneration and income they received in the previous year. However, under the streamlined declaration requirements, employees remunerated by a single employer are exempt from submitting the Form.

For further information, please visit the website of the Financial Services Bureau of the Macao SAR Government: https://www.dsf.gov.mo/en

Non-resident workers in Macao injured at work are entitled to compensation in accordance with the law. In this regard, the primary legal basis is Decree-law No. 40/95/M, “Legal Regime on Compensation for Damage Arising from Work Accidents and Occupational Diseases” (Regime jurídico da eparação por danos emergentes de acidentes de trabalho e doenças profissionais).

Under the Decree-law, employers have compensation liability relating to work accidents, and are normally required to take out mandatory work-related injury insurances for employees to cover the compensation expenses.

The specific scope and criteria for compensation are clearly defined across four main categories:

• Compensation for medical expenses: Employers are liable for all expenses incurred for medical, surgical and pharmaceutical treatment, as well as hospitalisation and rehabilitation required for the injured employee until the employee has fully recovered or has been certified as suffering from permanent total incapacity.
  According to the information published by the Labour Affairs Bureau of Macao, the maximum compensation for medical expenses is MOP 3,150,000. If the injured employee receives medical treatment outside Macao’s hospitals or health centres, the compensation is capped at MOP 300 per day.
• Compensation for temporary incapacity: Employees who are unable to resume work after an injury may receive compensation equal to two thirds of their salary to cover their essential living expenses during their absence from work.
• Compensation for permanent incapacity: The compensation amount is determined by the employee’s degree of permanent incapacity (i.e. percentage of permanent loss of working capacity) according to medical assessment, and the basic remuneration of the employee at the time of the injury. Pursuant to Paragraph 2 of Article 47 of the Decree law No. 40/95/M, the minimum compensation for permanent total incapacity is MOP 425,250, while the maximum compensation for permanent (whether partial or total) incapacity is capped at MOP 1,417,500.
• Compensation for death: Dependants of an employee who dies from a work accident are entitled to compensation ranging from a minimum of MOP 340,200 up to MOP 1,134,000.

For further information, please visit the website of the Labour Affairs Bureau of the Macao SAR Government: https://www.dsal.gov.mo/en/standard/index.html

The termination of employment between a non-resident worker and an employer in Macao must strictly comply with relevant requirements of Law No. 7/2008, “Labour Relations Law” (Lei das relações de trabalho). The procedures and obligations applicable to the entity terminating the employment (whether the employer or employee) differ according to the reasons for termination, which are specifically “rescission without just cause”, “rescission with just cause” and “rescission on the initiative of the employee”.

Rescission without just cause

• An employer who rescinds employment without just cause must give the employee 15 days’ advance notice according to the statutory period of advance notice. The parties may agree on a different notice period, provided that it complies with the relevant statutory requirements and that the agreed notice period binding on the employee does not exceed that applicable to the employer. If the employer fails to give the 15 days’ advance notice, the employer must provide the employee with payment in lieu of notice for the number of days not covered by the advance notice.
• The employer is also required to calculate the termination compensation based on the employee’s length of service.

Details are as follows:

• 7 days of basic remuneration for a length of service from the day after the probation expires up to 1 year;
• 10 days of basic remuneration per full year of service for a length of service of more than 1 year to 3 years;
• 13 days of basic remuneration per full year of service for a length of service of more than 3 years to 5 years;
• 15 days of basic remuneration per full year of service for a length of service of more than 5 years to 7 years;
• 16 days of basic remuneration per full year of service for a length of service of more than 7 years to 8 years;
• 17 days of basic remuneration per full year of service for a length of service of more than 8 years to 9 years;
• 18 days of basic remuneration per full year of service for a length of service of more than 9 years to 10 years; and
• 20 days of basic remuneration per full year of service for a length of service of more than 10 years.

The above calculation is subject to statutory restrictions: the aggregate amount of compensation must not exceed 12 times the basic remuneration of the month in which the employment is rescinded, and the basic monthly remuneration used for calculation is capped at MOP 21,500.

Rescission with just cause

• Where rescission of employment is initiated by an employer with just cause, according to Article 69 of the Labour Relations Law, if an employee is found to have committed serious misconduct (such as wilful disobedience to a superior without justification, acts of physical violence within the premises of the enterprise, and severe harm to the enterprise’s interests) making it impossible for the employer to continue the employment relationship, the employer may summarily dismiss the employee without prior notice or any compensation.
• However, the employer must notify the employee in writing of the decision to terminate employment within 30 days of becoming aware of the facts, together with a brief statement of the facts and grounds attributable to the employee.
• If the written notice is not given by the specified time, or the facts attributable to the employee are not clearly stated therein, the dismissal will be deemed to be without just cause. In such a case, the employee shall be entitled to receive twice the amount of compensation stipulated in Article 70 of the Labour Relations Law.

Rescission on the initiative of the employee

• An employee may voluntarily rescind the employment by giving a prior notice of rescission. If the parties have not agreed on the notice period, the employee must give notice to the employer 7 days in advance as required by law. Alternatively, the employee may summarily rescind the employment with just cause (such as the employer’s repeated failure to pay the remuneration and infringement of the employee’s lawful rights). In such a case, the employee is entitled to claim compensation from the employer.
• In principle, an employment contract entered into with a non-resident worker is valid for a definite term in alignment with the term of the employment permit. Contracts not renewed by the parties upon expiration will be automatically terminated without prior notice or any compensation.

For further information, please visit the website of the Labour Affairs Bureau of the Macao SAR Government: https://www.dsal.gov.mo/en/standard/index.html

• According to the “State Council’s Decision on Abolishing a Number of Administrative Approval Items” (GuoFa [2018] No.28)(Chinese only), Hong Kong, Macao and Taiwan residents no longer require an employment permit to work in the Mainland.
• Job opportunities can be found on the website of Guangdong-Hong Kong‑Macao Greater Bay Area (Guangdong) Talent Hub (https://ggfw.hrss.gd.gov.cn/gba/#/) (Chinese only).

• According to the Social Insurance Law of the People’s Republic of China, as long as an employment relationship is established, the employer and the employee are required to jointly contribute to social insurance. This is a legal obligation that cannot be exempted by private agreements between both parties.
• The “Interim Measures for Hong Kong, Macao, and Taiwan Residents to Participate in Social Insurance in the Mainland”(Chinese only) explicitly stipulated that Hong Kong, Macao and Taiwan residents employed in the Mainland shall enroll in the five categories of basic social insurance. Unemployed Hong Kong, Macao and Taiwan residents living in the Mainland may contribute to the basic pension and medical insurance schemes for urban and rural residents in their place of residence in accordance with local regulations.
• The specific rules are as follows: Employers should declare and make monthly social insurance payments to the tax authorities before the end of each month. The contribution base is determined according to the employees’ average monthly wages for the preceding year. The composition of wages includes basic salary, performance bonuses, allowances, subsidies, overtime pay and other monetary income, all of which must be included in the contribution base. Each region sets its own upper and lower limits for the contribution base (for example, the upper limit of the contribution base for Guangzhou employees’ basic medical insurance in 2026 is RMB 31,170, and the lower limit is RMB 6,234). If an employee’s wage falls below the lower limit, the contribution base shall be based on the lower limit; if it exceeds the upper limit, the base shall be capped at the upper limit.
• Obligations of employers: Social insurance contributions payable by employees shall be withheld from their wages and paid on their behalf by the employer. Employers shall inform employees of their monthly social insurance contribution details. If an employer fails to declare wages on time or in full, resulting in underpayment or delinquent payment of social insurance contribution, the employer must bear the corresponding legal liabilities and pay overdue surcharges and interest.
• Furthermore, the Mainland operates a Housing Provident Fund (HPF) system. For Hong Kong residents employed in the Mainland, their employers are required to make contributions to their HPF in accordance with regulations. The deposit ratio for Hong Kong employees is the same as that of Mainland employees. There are dedicated service counters for Hong Kong and Macao residents at the HPF Management Centres. Employees can withdraw their HPF savings to purchase or rent a property in the Mainland, or to repay property mortgage loans in the Mainland or Hong Kong. HPF account closure and withdrawal are permitted upon termination of employment or emigration. Cross-boundary withdrawal of HPF is also supported. For example, the arrangement of cross-boundary RMB settlement for the Housing Provident Fund has been implemented in Nansha, Guangzhou and Qianhai, Shenzhen. This allows funds withdrawn to be remitted directly to the bank accounts in Hong Kong without any service charge throughout the process. Applications for withdrawal can be made online (via the WeChat official account), and the funds can be credited to the accounts instantly.

• To determine whether Hong Kong and Macao individuals working and living across the boundary are Mainland tax residents, it is necessary to take into account two criteria, namely their days of residence (the “183‑day rule” and the “6-year rule”) and their domiciles.
• Individual income tax (IIT) must be paid. According to the Individual Income Tax Law and its implementation regulations, income from wages and salaries, remuneration for personal services, author’s remuneration and royalties (collectively referred to as “comprehensive income”) earned by a resident individual shall be aggregated on a tax year basis to calculate the total IIT payable. While standard national policies apply, certain regions provide exclusive IIT incentives, which eligible taxpayers may enjoy during their annual tax clearance.
• The calculation formula is as follows: Tax payable = (total comprehensive income - RMB 60,000 tax allowance - special deductions such as the “three social insurances and HPF” – special additional deductions such as children’s education - other deductible items permitted by law - eligible charitable donations) × applicable tax rate - quick calculation deduction. For comprehensive income in excess of the specified amount, seven tiers of progressive tax rates ranging from 3% to 45% shall apply.
• Tax collection and administration: In general, entities (employers) making income payments shall “withhold and prepay tax” on a monthly basis or when the taxable income arises. After the end of the tax year, taxpayers are required to file the annual tax reconciliation within the period from 1 March to 30 June of the following year, by aggregating the total income for the year, calculating the tax payable for the year, determining the amount of tax to be refunded or the supplementary tax payable after deducting the tax that has been prepaid, filing a tax return with the tax authority and settling the tax payment. This “refund for overpayment and top-up for underpayment” mechanism ensures the accuracy and fairness of the tax liability for the year.
• Tax obligations of Hong Kong residents working in the Mainland depend on three major factors, namely their days of residence, source of income and region of employment (whether it is in the GBA).
  • Determination of tax liability: For an individual residing in the Mainland for fewer than an aggregate of 90 days within a tax year, the salaries and wages earned from the work performed within the Mainland and paid by an employer outside the Mainland shall be exempt from IIT. For an individual residing in the Mainland for more than an aggregate of 90 days but less than 183 days, only the income earned during the working period in the Mainland shall be subject to IIT.
  • IIT subsidies in the GBA: For Hong Kong residents who are recognised as high-end or urgently needed talents working in the nine Mainland cities within the GBA (including Guangzhou, Shenzhen and Zhuhai), the portion of their Mainland IIT liability that exceeds their Hong Kong salaries tax liability will be subsidised by the local governments. Such subsidies are exempt from IIT. The policy, which remains effective until 31 December 2027, is based on the “Circular of the Ministry of Finance and the State Taxation Administration with Respect to the Individual Income Tax Preferences for the Guangdong-Hong Kong-Macao Greater Bay Area” (Cai Shui [2019] No. 31) and the “Circular of the Ministry of Finance and the State Taxation Administration on Extending the Individual Income Tax Preferences for the Guangdong-Hong Kong-Macao Greater Bay Area” (Cai Shui [2023] No. 34).
  • Preferential policies exclusive to Nansha District: For Hong Kong residents working in Nansha, Guangzhou, regardless of their talent categories, the portion of their IIT liability exceeding their Hong Kong tax liability shall be exempt from IIT. This policy, which remains effective until 31 December 2026, is based on the “Notice of the Ministry of Finance and the State Taxation Administration on Preferential Individual Income Tax Policies for Hong Kong and Macao Residents Working in Nansha, Guangzhou” (Cai Shui [2022] No. 29)(Chinese only) and the “Notice of the Guangzhou Municipal Finance Bureau and the Guangzhou Municipal Tax Service, State Taxation Administration on the Issuance of Implementation Measures in relation to the Preferential Individual Income Tax Policies in Nansha, Guangzhou” (Sui Cai Gui Zi [2022] No. 1)(Chinese only).
  • On 21 August 2006, the Mainland and the HKSAR signed the “Arrangement between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income” (the “Arrangement”). Protocols to the Arrangement were subsequently concluded by both parties to further expand the scope of tax concessions and to implement international standards against tax avoidance. The Arrangement not only enables individuals engaged in cross-boundary work in the Mainland and Hong Kong to have a better understanding of their tax liabilities, but also fosters exchanges and collaborations between the two places in areas such as bilateral trade, investment activities and talent training.
  • The Mainland has also entered into a similar arrangement with Macao. For details, please refer to the “Arrangement between the Mainland of China and the Macao Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income”(Chinese and Portuguese only).
• Tax computations depend on individual circumstances. For further information , please visit the websites of the relevant tax authorities.

• Yes, you are entitled to compensation, primarily based on the Regulations on Work-Related Injury Insurance. Once an injury has been determined to be work-related through legal procedures, the employee is entitled to the following benefits:
  • Medical and rehabilitation benefits: Expenses incurred for the treatment of a work-related injury shall be covered by the work‑related injury insurance fund, provided that they fall within the scope of diagnosis, treatment and drugs and satisfy the standard of hospitalisation services specified under the work‑related injury insurance scheme.
  • Disability benefits: Various benefits are provided based on the disability grades determined by the work capability assessment (Grades 1 to 10), including a lump-sum disability subsidy (at rates of 7 to 27 months of the employee’s own wage); a monthly disability allowance payable to employees with Grades 1 to 6 disabilities (at rates of 90% to 60% of the employee’s own wage); and a lump-sum work-related injury medical subsidy and a lump-sum disability employment subsidy payable to employees with Grades 5 to 10 disabilities upon rescission or termination of the labour contract.
    • Lump-sum disability subsidy (Grades 1-10):
      Paid from the work-related injury insurance fund, this subsidy is calculated based on the employee’s monthly wage for a specified number of months, as follows: Grade 1: 27 months’ wage; Grade 2: 25 months’ wage; Grade 3: 23 months’ wage; Grade 4: 21 months’ wage; Grade 5: 18 months’ wage; Grade 6: 16 months’ wage; Grade 7: 13 months’ wage; Grade 8: 11 months’ wage; Grade 9: 9 months’ wage; and Grade 10: 7 months’ wage.
    • Disability allowance (Grades 1-6):
      Grades 1-4: The work-injured employee maintains their employment relationship but withdraws from their work posts. Paid monthly from the work-related injury insurance fund, this allowance is calculated as a percentage of the employee’s wage, as follows: Grade 1: 90%; Grade 2: 85%; Grade 3: 80%; Grade 4: 75%. If the allowance is lower than the local minimum wage, the work-related injury insurance fund will make up the difference.
      Upon reaching the statutory retirement age and completing the retirement procedures, the disability allowance will cease and the work-injured employee will instead receive basic pension benefits. If the basic pension benefits are lower than the disability allowance, the work-related injury insurance fund will make up the difference.
      Grades 5-6: The work-injured employee maintains their employment relationship with the employer and the employer shall arrange suitable work for them. If the employer is unable to assign any work to the employee, the employer shall pay a monthly disability allowance equal to a percentage of the employee’s wage, as follows: Grade 5: 70%; and Grade 6: 60%. If the allowance is lower than the local minimum wage, the employer shall make up the difference and continue to make all social insurance contributions in accordance with regulations.
    • Lump-sum work-related injury medical subsidy and lump‑sum disability employment subsidy (Grades 5-10):
      When an employee is graded with a Grade 5 to 10 disability and the labour (employment) contract is terminated or the employee requests rescission of the employment relationship (except where the employee is receiving basic pension benefits or is deceased) in accordance with the law, a lump‑sum work-related injury medical subsidy shall be paid from the work-related injury insurance fund and a lump-sum disability employment subsidy shall be paid by the employer.
  • Work-related death benefits: In the event of work-related death, the close relatives of the employee shall be entitled to receive a funeral subsidy (equal to six months of the average monthly wage of the employee in the pooling district for the preceding year), a survivor’s pension for dependents (payable monthly at a rate of 40% of the employee's wage for a spouse, and 30% for other relatives), and a lump-sum subsidy for work-related death from the work-related injury insurance fund. The latest standard in 2026: Based on the per capita disposable income of urban residents of RMB 56,502 in 2025, as released by the National Bureau of Statistics, the lump-sum work-related death subsidy for cases occurring in 2026 is RMB 1,130,040 (RMB 56,502 x 20). This standard is applicable across the whole country.

• Under the Labour Contract Law of the People’s Republic of China, the termination of employment mainly falls into the following categories:
  • Rescission by mutual agreement: The labour contract may be rescinded if the employer and the employee reach a consensus . If the employer proposes the rescission, the employer shall pay financial compensation to the employee.
  • Unilateral rescission by the employee: The employee may rescind the labour contract by giving the employer 30 days’ advance written notice, or three days’ advance written notice during the probation period. If the employer is at fault, such as by failing to pay remuneration on time and in full or failing to contribute to social insurance in accordance with the law, the employee may rescind the labour contract immediately without having to give 30 days’ advance written notice and claim financial compensation.
  • Rescission by the employer:
    • Immediate rescission (compensation not required): This applies if an employee is proven to be unqualified for employment during the probation period, seriously violates the rules and regulations, or commits a serious dereliction of duty causing severe damage.
    • Rescission with notice (compensation required, i.e. N or N+1): The employer may rescind the labour contract with an employee who is unable to resume their original duties upon the expiry of the prescribed period of medical treatment for illness or non-work-related injury; or who is incompetent for the post and remains incompetent after receiving training or being assigned to another post, provided that the employer has given 30 days’ advance written notice to the employee or has paid an additional month’s wages (payment in lieu of notice). The employer shall pay financial compensation as well.
    • Economic layoffs (compensation required, i.e., N): Where layoffs are carried out under circumstances such as restructuring pursuant to the Law on Enterprise Bankruptcy or serious difficulties in production and management, the employer shall pay financial compensation.
  • Unlawful rescission (compensation required, i.e., 2N): Where the employer rescinds or terminates a labour contract in violation of the law, the employer shall continue to perform the contract if the employee demands so. If the employee does not demand so or the performance of the contract becomes impossible, the employer shall pay compensation at twice the standard rate of financial compensation.