According to the Notice on Fully Implementing the Foreigners’ Work Permit System in China (the “Notice”) issued in 2017,1 foreign nationals with monthly income at least six times or four times the local annual average wage (the “average wage”) could apply for high talent (Category A) or certain professional talent (Category B) work permits through the salary commitment route. Compared with other applications, only basic application materials are required under the salary commitment route resulting in a shorter timeframe for approval.
WHY THIS MATTERS
Beijing and Shanghai had previously applied a more flexible approach in reviewing salary standards when approving Category A and certain Category B work permit applications, in line with their broader efforts to attract overseas talent. More recently, both cities have moved to strictly enforce the applicable income thresholds set out in the Notice, reflecting a shift in local implementation practices and a renewed focus on supporting fair market competition. This change could have practical implications for employers and foreign nationals, particularly if existing compensation structures no longer align with the enforced thresholds.
Key Highlights
Enforcing higher salary standards
Starting mid-February 2026, the minimum salary requirements for applying for Category A and certain Category B work permits through the salary commitment route are as follows:2
Work permit category* | Beijing | Shanghai |
Minimum salary income (monthly/annual) | Minimum salary income (monthly/annual) | |
High Talent (Category A) | ≥ RMB 71,622 / ≥ RMB 859,464 | ≥ RMB 74,604 / ≥ RMB 895,248 |
Professional Talent (Category B) | ≥ RMB 47,748 / ≥ RMB 572,976 | ≥ RMB 49,736 / ≥ RMB 596,832 |
* The above salary standards are in RMB and generally exclude year-end performance bonuses and various tax-exempt allowances for foreign nationals.
* The average wage is usually adjusted in July each year, therefore the salary standards are subject to change on an annual basis.
In other regions across China, the six-times and four-times average wage standards continue to be enforced.
Affected groups
- Foreign nationals who are planning to apply for their Category A or certain Category B work permit through the salary commitment route for the first time.
- Foreign nationals holding valid work permits whose salary income does not meet the required thresholds when applying for renewal or amendment applications.
KPMG INSIGHTS
Starting mid-February 2026, the minimum salary income standards have increased by nearly 50 percent compared with the previous thresholds practically implemented. This move by Beijing and Shanghai is intended to help attract high-quality talent and support fair market competition. It is worth noting that foreign nationals applying for Category A or Category B work permits could also pursue alternative routes such as diversified talent recognition policies, point-based systems (85 points or more for Category A, 60 points or more for Category B), Shanghai “High-Tech and High-End” talent recognition, and the Shanghai Science and Technology Innovation Occupation List, for the application of their work permits.
In light of the stricter enforcement of salary thresholds for certain work permit applications in Beijing and Shanghai, organizations might wish to consider the following:
- If an application is under review and the applicant’s salary income does not meet the required thresholds, employers could follow up on the review progress and prepare additional supporting materials or amend the application category, as appropriate. This approach could support a smoother onboarding process for foreign employees in China and help reduce the risk of potential delays.
- Companies could review the status of work permits and the salary levels of foreign employees applying through the salary commitment route in Beijing and Shanghai, including by prioritizing cases where the work permit validity is less than three months and the salary income does not meet the applicable threshold, and by evaluating alternative extension routes where relevant.
- Companies could also consider advancing extension planning four to six months before expiry, calculating the applicable six times and four times salary standards based on the most recent average wage, and allowing sufficient time to prepare application materials.
- Employers could seek professional assistance to evaluate and identify the most suitable talent recognition routes based on their specific circumstances.
- Companies could review and structure the compensation arrangements of existing foreign employees to align with immigration requirements while maintaining compliance with applicable tax regulations.
If assignees and/or their programme managers have any questions or concerns about the scope of the update, its application and potential impacts, and appropriate next steps, they should consult with their qualified professional or a member of the GMS team with KPMG in China (see the Contacts section).
ENDNOTES:
1 Jointly issued by the State Administration of Foreign Experts Affairs, Ministry of HR and Social Security, Ministry of Foreign Affairs, and Ministry of Public Security, “Notice (SAFEA No. 40 [2017]),” published on 18 March 2017.
2 EoS website, China Work Permit Salary Requirements Tightened for 2026, published on 12 February 2026.
Contacts
Disclaimer
* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.
The information contained in this newsletter was submitted by the KPMG International member firm in the People’s Republic of China.
GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
© 2026 KPMG Huazhen LLP, a People's Republic of China partnership, KPMG Advisory (China) Limited, a limited liability company in Chinese Mainland, KPMG, a Macau SAR partnership, and KPMG, a Hong Kong SAR partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.