If you’re wondering how to handle unlawful wage deductions in China, you’re not alone! Many workers face this problem and want to know what to do. The good news is, Chinese law protects employees from unfair pay cuts.

It’s important to know your rights and the steps you can take if your boss is taking too much from your paycheck. Read to find out how to stand up for yourself and keep your hard-earned money.

What Counts as Unlawful Wage Deductions in China?

Understanding which wage deductions are not allowed under Chinese law helps you protect your rights at work.

Deductions are legal in some cases, but employers often cross the line and take out money without a clear reason that the law allows.

Legal vs. Illegal Deductions

Chinese labor laws say your employer can only make deductions if they are authorized by law.

Common legal deductions include required contributions to social insurance, the housing fund, and taxes.

Your employer can deduct these amounts directly from your pay as long as the deductions follow the rules.

Deductions that are not clearly supported by law are considered illegal.

For example, your employer cannot take money from your wages for mistakes at work, damage to company property (unless proven and agreed upon), or as punishment.

Wages must always meet the statutory minimum wage after these legal deductions are made.

Common Examples of Unlawful Deductions

Unlawful wage deductions often show up when employers try to avoid paying you what you have earned.

Examples include:

• Deducting pay for overtime hours that were actually worked.
• Charging you for using sick leave, maternity leave, or paternity leave if these are protected by law.
• Taking out wages as penalties for being late, not meeting sales targets, or causing accidental losses.
• Paying below the minimum wage after making deductions.

If you notice any of these deductions, you should keep records and ask for an explanation.

Curious if your pay matches others in your field? Check out our article, What is the Average Salary in China: A Guide to Current Trends and Statistics to see the latest numbers and trends.

What Are Your Rights and Employer’s Obligations?

Chinese law protects your right to fair pay and prohibits most unauthorized wage deductions.

Employers must follow clear rules and face penalties if they break labor laws or fail to provide proper working conditions.

Employee Protections Under Chinese Law

As an employee in China, you have the right to receive full wages as agreed in your employment contract. Any deduction from your wages must follow strict legal requirements. Unauthorized deductions—like fines or withholdings not stated by law—are unlawful.

If your employer does not pay you on time, withholds your pay, or makes unfair deductions, you can file a complaint with the local labor bureau.

Chinese labor law also protects you against discrimination and requires safe, healthy working conditions.

Minimum wage laws and regulations on working time help ensure fair treatment. You are also covered by social security programs.

Your employer must contribute to social insurance, including health, pension, and unemployment funds. These rules apply to all employees, including expats working legally in China.

Employer Responsibilities

Employers in China have a duty to follow the Labor Law and related employment ordinances. That means they must pay your wages in full and on time, with only allowed deductions, such as taxes or mandatory social insurance contributions.

Employers cannot deduct money for reasons outside what is legally permitted or stated in your contract.

Late or partial payments and taking unauthorized deductions can be punished by fines or other penalties, such as those listed in official guidelines.

Employers must also provide clear written employment contracts, observe fair working time, and protect you from harmful working conditions or discrimination.

They are required to submit regular social security contributions and cannot skip or underpay these amounts. Failure to meet obligations can result in inspections or legal disputes.

Want to know what your employer is really required to do? Read China Employer Obligations: A Full Guide for Compliance in 2025 for a clear look at employer responsibilities and your rights.

What To Do If You Face Unlawful Wage Deductions

If your employer in China deducts wages unlawfully, you should act quickly and follow clear steps. There are options to deal with unpaid wages, wrongful deductions, or termination.

Steps To Resolve with Your Employer

Start by gathering all relevant evidence. This includes pay slips, your employment contract, and any communication about pay or termination.

Keeping these documents organized makes your case stronger. Contact your employer in writing. Be clear about what wage deduction happened, the amount involved, and why you believe it is unlawful.

Remain polite and professional. Sometimes, employers will fix the issue after a formal request.

If talking does not work, you can ask for mediation. Many labor disputes in China, including unpaid wages and wrongful termination, are resolved this way.

Mediation is usually faster and less formal than going to court. The local labor bureau can help arrange this process.

How To File a Complaint and What to Expect

If mediation fails or your employer refuses to cooperate, you can file a formal complaint with the local labor bureau (劳动保障监察大队).

Prepare copies of your evidence and a short written statement. You may need to fill out specific forms. The labor bureau will review your case, investigate if necessary, and notify your employer.

Some cases are finished within a few weeks, but more complex ones can take longer. If you do not agree with the result from the labor bureau, you can file for labor arbitration. This is the usual next step for disputes about unpaid wages, wrongful deductions, or wrongful termination.

Arbitration decisions are binding and can be enforced by law.

Where To Get Help and Prevent Future Issues

You have options if your wages are unlawfully deducted. Knowing where to seek help and how to protect yourself is key.

Government Hotlines and Legal Aid

You can call the national labor complaint hotline in China at 12333 to report wage problems. This hotline connects you to local Human Resources and Social Security (HRSS) offices.

These offices investigate claims and can order employers to return deducted wages.

In cities like Beijing and Shanghai, free legal aid centers help workers fill out documents and understand their rights.

You may also visit your nearest Labour Supervision Detachment for in-person help. If your employer is found breaking labor laws, their business may be added to a government "blacklist." Being on the blacklist can lead to fines and restrictions for the company.

You do not need a lawyer to file a complaint, but some non-profit legal groups can guide you if you want extra help.

Always keep evidence, such as pay slips and written notices, when seeking aid.

Tips to Protect Yourself

Ask for a written contract before you start work. The contract should list your pay, work hours, and any conditions for wage deductions.

Check your monthly wage statement to make sure it matches your contract. If you notice money missing, ask your employer for an explanation in writing.

Keep copies of all work-related records, like contracts, emails, and wage slips. These help if you need to prove unlawful deductions during a dispute.

If your company receives a warning or is placed on a blacklist for past wage problems, be careful.

You can check this by searching the national credit information website. Try to talk with your employer first if you find a problem, but do not delay contacting authorities if things do not improve.

Conclusion

Unlawful wage deductions in China can be stressful, but knowing your rights is the first step to solving the problem. Always keep records of your pay and any deductions, and talk to your employer if you notice something wrong.

If things don’t get fixed, you can contact local labor authorities or seek legal help. Remember, you don’t have to face this issue alone—there are laws in place to protect you. Stay informed and take action to make sure you get the pay you deserve!

If you need expert advice or support, don’t hesitate to contact China Legal Experts today for help with your case.

Wondering what working life is like for employees across China? Read our article, China Working Conditions Overview: The Reality of Labor for an honest look at the workplace environment.

Frequently Asked Questions

How does payroll work in China?

Employers in China must follow strict legal rules for paying employees. Your pay is usually sent directly to a bank account once a month.

Wages must include base pay and sometimes bonuses, overtime, or allowances if agreed in your contract.

Are you allowed to quit your job in China?

You have the right to resign from your job by giving written notice. The law generally requires you to provide notice at least 30 days in advance.

Your employer cannot charge a penalty for quitting your job.

How is pay determined in China?

Your salary is based on your employment contract and must not fall below the local minimum wage.

Factors like position, local laws, and your company’s pay structure all affect your earnings. Raises and bonuses depend on your contract and company policy.

What is the payroll tax in China?

Payroll taxes include personal income tax and contributions to social insurance funds. Employers are required to withhold these amounts from your paycheck before you receive it.

The rates depend on your income level and location within China.

What is the main payment method in China?

The main method for paying wages in China is direct bank transfer.

Employers deposit your salary into your designated account, which you can access through ATMs or mobile banking apps.

How does one report an illegal payroll deduction to the Chinese labor authorities?

If you find an unlawful wage deduction, you can file a complaint with the local labor bureau (劳动保障监察部门). Bring copies of your employment contract, payroll records, and any other evidence.

The authorities will review your case. They can order your employer to repay you if they find the deduction was illegal.