In recent years, many multinational companies have been exploring the option of using Employer of Record (EOR) services to expand their business in China. One of the key considerations for companies looking to establish a presence in China is the cost of hiring and retaining talent, especially in research and development (R&D) positions. In this blog post, we will take a closer look at the employment cost of R&D positions in Qingdao, China, and how EOR can be a beneficial solution for companies operating in the region. Click here to see ChaadHR China Employer of Record EOR hiring guide

Understanding EOR in China

Employer of Record (EOR) is a co-employment model that allows companies to outsource their HR and employment responsibilities to a third-party service provider. In the context of China, EOR services enable foreign companies to hire and manage local employees without the need to establish a legal entity in the country. This can significantly reduce the administrative burden and compliance risks associated with hiring employees in China, making it an attractive option for companies looking to expand their operations in the region.

The Employment Cost of R&D Positions in Qingdao

Qingdao, a major city in eastern China, has been experiencing rapid economic growth and has emerged as a hub for R&D activities in various industries. When considering the employment cost of R&D positions in Qingdao, companies need to take into account several factors, including salaries, benefits, and statutory contributions.


The salaries for R&D positions in Qingdao can vary depending on factors such as the level of experience, industry, and specific job requirements. On average, the monthly salary for an R&D engineer in Qingdao ranges from RMB 10,000 to RMB 20,000, while senior R&D managers can command higher salaries ranging from RMB 20,000 to RMB 40,000 per month.


In addition to salaries, companies are also required to provide benefits to their employees in China. These benefits may include social insurance contributions, housing fund contributions, medical insurance, and other welfare benefits. The cost of providing these benefits can add a significant amount to the overall employment cost of R&D positions in Qingdao.

Statutory Contributions

Employers in China are also obligated to make statutory contributions on behalf of their employees. These contributions typically include social insurance contributions, housing fund contributions, and other statutory payments. The exact amount of these contributions can vary based on local regulations and the specific requirements for each employee.

The Benefits of Using EOR for R&D Positions in Qingdao

Given the complexities and costs associated with hiring and managing employees in China, many companies are turning to EOR services as a strategic solution for their R&D operations in Qingdao. By partnering with an EOR service provider, companies can benefit from the following:

Compliance Management

EOR service providers are well-versed in local labor laws and regulations, ensuring that companies remain compliant with all employment-related requirements. This can help mitigate the risks associated with non-compliance and legal liabilities.

Administrative Support

EOR service providers handle various administrative tasks, including payroll processing, tax filings, and employee onboarding. This allows companies to focus on their core business activities while leaving the HR and employment-related responsibilities to the EOR provider.

Cost Savings

By outsourcing HR and employment responsibilities to an EOR service provider, companies can avoid the costs associated with establishing a legal entity in China. This can result in significant cost savings and streamlined operations for companies looking to expand their R&D operations in Qingdao.


As multinational companies continue to expand their R&D operations in Qingdao, the employment cost of R&D positions remains a critical consideration. By leveraging EOR services, companies can effectively navigate the complexities of hiring and managing employees in China while optimizing their operational efficiency and cost-effectiveness. With the right EOR partner, companies can establish a strong presence in Qingdao's vibrant R&D ecosystem and drive innovation and growth in their respective industries.

For more information on how to set up and manage your international workforce in China, check out ChaadHR's hiring guide for China.

How Chinese Employer of Record (EOR) Works

As a local Employer of Record (EOR), we take on the legal responsibility of employing your new workforce in China. While you manage the day-to-day activities of your employees, we legally hire them through our agency. ChaadHR operates in over a hundred countries and utilizes local networks of experts to gain in-depth knowledge of local laws and regulations, as well as recruitment customs and trends. By partnering with us as an EOR, you gain access to this expert knowledge, which can be invaluable when expanding your business into China.

Our employment contract with your employees complies with Chinese labor laws and includes benefits such as insurance and pensions. We can hire, onboard, and manage your new employees in China in a matter of days, ensuring a fast and efficient process.

Hereis how we can assist you:

- We ensure that your new hires are compliant with Chinese laws and regulations.

- We take care of the employment contract, HR (Human Resources) matters, taxes, and payroll.

- We arrange the required visas or work permits for your employees.

- Our team keeps your employees informed about holiday arrangements, benefits, and any changes in labor laws.

- We keep you updated on changes in local laws and ensure that we comply with them.

-Your employees' declarations are forwarded to us on a monthly basis. Once we receive your payment, we deduct taxes and other contributions, and ensure that your employees receive their salaries promptly.

- You retain control over the daily activities and responsibilities of your employees.

🌎💼Compliantly Hire and Pay Talent in 160+ Countries With ChaadHR

With our comprehensive Global Employer of Record (EoR) solution and integrated Global Payroll solution, we empower businesses to confidently and compliantly hire and pay their workforce in over 160 countries. By partnering with ChaadHR, companies can eliminate the burdensome task of entity establishment and navigating complex labor laws, while ensuring their payroll operations are fully compliant with local regulations.

ChaadHR helps businesses expand globally. We provide support for testing new markets, hiring employees, and setting up subsidiaries. Our platform offers compliant onboarding of international contractors, remote employee hiring, and consolidated payroll management through a single dashboard. Book a demo to learn more.