Work Permits A, B and C: What the Salary Thresholds Mean for Your Hire

China Field Notes · by Daona · 10 min read

In Issue 03 we walked through the route a foreign professional takes to work in China: work permit notification, Z visa, work permit, residence permit. One line generated more questions than anything else: "Shanghai and Beijing have been applying the salary floors strictly since February 2026, including at renewal."

This issue picks up from there. It is written for the person signing the offer letter — a general manager, an HR lead, a founder hiring the first foreign engineer — as much as for the employee: what the three categories are, how the salary thresholds and points system work, what "local average wage" means, and how to avoid an offer that lands just below the line.

Since 2017, China has run a single Foreigner's Work Permit (外国人工作许可) system, administered by the foreign experts authorities through an online service platform. Every applicant is classified:

Everyone must be at least 18, healthy, without a criminal record, employed by a legally registered employer in mainland China, and paid at least the local minimum wage. Official guidance also states that foreigners are hired for positions with a special need local candidates cannot readily fill.

Points are one route to A or B, not the only one. Factors below are from the Shanghai government's published table; the authority makes the final assessment, and provincial bonus points vary.

Salary in the points table tops out at ¥450,000 a year — far below the Category A salary thresholds in Beijing and Shanghai. A well-paid candidate may fail the salary route and still reach A on points, or the other way round. Small items matter: an HSK certificate or a Fortune Global 500 employer can move a candidate across the A line.

The multiples are applied to the average wage of urban employees (城镇单位就业人员平均工资) each city publishes for the previous year — the same figure that drives social insurance bases and the severance cap (see Issue 17).

Beijing and Shanghai had reportedly not updated the figures their work permit systems used since 2017. In early February 2026, both systems switched to the current published average wages, and salaries below the thresholds are now blocked at the form stage:

As reported by Fragomen, Morgan Lewis and China Briefing. Previously ¥600,000 (A) and ¥400,000 (B) a year in Shanghai; ¥570,000 and ¥380,000 in Beijing — a rise of roughly 50%.

· Renewals are covered. Employees approved as Category A on an old salary may be downgraded to B at renewal — which can mean producing the authenticated degree and criminal record check A did not require.

· The salary must be real. Declared salary is cross-checked against the employment contract and individual income tax records.

· Figures change. Shenzhen and Guangzhou already update annually; Beijing and Shanghai are expected to follow. Sources even differ on the enforcement date (1 January to 5 February 2026). Check before you sign.

The floors apply to the salary route. A Category B candidate qualifying through degree plus experience, or points, is assessed on those criteria — but the declared salary still feeds the points score and is verified.

A Shanghai company wants to hire a 40-year-old engineering director: master's degree, 12 years' relevant experience, in China all year, no HSK, no bonus items. Draft offer: ¥70,000 a month.

Illustrative. Does not refer to any real person.

Three ways to reach Category A:

Is Category A worth ¥55,248 a year? Sometimes. Shanghai's guidance says Category A permits can be extended for two to five years; Category B approvals are generally one year at a time, with a two-year permit available only after an initial application and one extension with the same employer. For a senior hire you expect to keep for years, that matters. For a two-year assignment, B may be fine.

Decide the category before you negotiate the salary. Run the points table and local multiples first, then set the package — not the other way round.

Treat the threshold as a floor, not a target. If the average wage is updated next year, an offer exactly at today's line will be below it at renewal. Leave several percent of margin.

Structure matters. What counts is the salary the system can verify — the China contract and the individual income tax record. Offshore allowances may not count.

Plan renewals early. Official guidance requires an extension application at least 30 days before expiry; Beijing and Shanghai reportedly open the window up to 120 days ahead. A permit that expires while a case is pending can be invalidated. Start at 90 days.

A new employer means a new permit. The old permit is cancelled, the new employer applies afresh, and the residence permit is updated.

Keep records consistent. Work permit data sits on the social security card (since 1 December 2024, see Issue 03). Permit, payroll, tax and social insurance records are increasingly visible together.

"Category A is just a label." It changes documentation, validity and renewals. A downgrade can add weeks.

"We can declare a higher salary and pay less." Declared salary is checked against contract and tax records.

"The thresholds are national." The multiples are national; the average wage is local.

"Points and salary are alternatives, so we only need one." True — but salary also drives points, and both are verified.

"Renewal is routine." Not since 2026 in Beijing and Shanghai.

Rules as of October 2026. This column provides general information, not legal advice. Work permit decisions are made by the competent authorities; applications should be handled by the employer or a licensed agency. Government fees and licensed firms' fees are settled by the client at cost.

China Field Notes · by Daona