China Legal Update – March 11th 2026, China News

I. Background

Recently in February 2026, Beijing and Shanghai have respectively enforced strict salary thresholds for Category A and Category B work permits.

Such implementation is in alignment with the prior released regulation in 2017 Classification Standards for Foreigners to Work in China (Trial), which sets salary thresholds for Category A: not less than 6 times the local average social wage and Category B: not less than 4 times the local average social wage. Foreign talents can apply for category A and B work permits through salary qualification pathway if meeting the salary standards.

II. Framework

1)      Scope of Application

The new salary standards apply to new applications and renewals of Category A and Category B work permits.

2)     Calculation base

All regions calculate the salary threshold based on the “average social wage of employed persons in urban units in the whole region of the previous year”. For example, the average social wage in Beijing in 2025 is about 11,937 yuan per month, so the salary threshold for Category A talents is about 71,622 yuan per month and for Category B talents is about 47,748 yuan per month.

In Shanghai, the average social wage in 2025 is about 12,434 yuan per month, thus the salary threshold for Category A talents is about 74,604 yuan per month and for Category B talents is about 49,736 yuan per month.

The restoration of strict salary thresholds in February 2026 is not a policy adjustment but a return to the original design of the 2017 regulation. During the epidemic period, the salary standards were flexibly relaxed to support enterprises in stabilizing their workforce.

By means of systematic rigid implementation, this implementation eliminates flexible operations and ensures the unified implementation of national standards.

III.  Impact on enterprises

Enterprises employing Category A and Category B talents will face a significant increase in labor costs. Applications that fail to meet the salary standards will not be approved or renewed, or the talent category may be downgraded (e.g., from Category A to Category B) with the requirement to supplement additional materials. Employers shall take into account the following measures to be taken:

•      Standardize the salary structure

Review the salary thresholds and retain tax payment certificates to cope with systematic verification and post-event inspections.

•      Initiate the renewal application in advance

For personnel whose work permits are about to expire, it is recommended to initiate renewal plans 3-6 months in advance, reserve sufficient time for salary adjustments and material preparation, and avoid license interruptions due to salary not meeting standards.

•      Adjust to other qualification pathways

If the salary has not yet met the new thresholds, it is necessary to consider transitioning to other qualification pathways (such as points-based score, academic qualifications combined with work experience, etc.).

 IV.  Conclusion