Money & workIdea 16 · 2 min read

Sign written employment contracts within the first month and register workers for social insurance within 30 days

Grade A evidenceValue: High
In plain language

In China, failing to sign a written contract after the first month can require double wages from month two until one year. Register social insurance within 30 days of hiring; failure can bring fines of 1–3 times contributions due. An employee cannot simply waive statutory social insurance.

MoneyHigher cost
TimeQuick and easy
EffortLittle effort

What it takes

Ongoing employer social-insurance contributions at locally varying rates. Signing is free; use the local human-resources authority's template.

What you may gain

Employment lasting more than one month but less than a year without a written contract requires double monthly wages. Social-insurance registration is due within 30 days of the first working day. Failure first brings a correction order; missing that deadline brings 1–3 times contributions due, plus RMB 500–3,000 for responsible people. Late or insufficient contributions accrue 0.05% per day; continued nonpayment after the deadline also brings 1–3 times the arrears. Employers must report and pay fully and on time, with statutory grounds such as force majeure required for delay or reduction. “The employee volunteered to waive it” is not a statutory exception. Chinese rules apply.

Context & considerations

Double wages run from the second month until the first anniversary, making delay expensive. If an uninsured worker without a contract is injured or later brings arbitration, back contributions, fines and compensation often exceed the money saved.

Research & references

NPC Standing Committee (2007). Labor Contract Law, Articles 10 and 82. https://www.gov.cn/gongbao/content/2007/content_711013.htm; NPC Standing Committee (2010). Social Insurance Law, 2018 amendment, Articles 58, 60, 84 and 86. https://www.mohrss.gov.cn/xxgk2020/fdzdgknr/zcfg/fl/202011/t20201102_394629.html