Hangzhou, capital of east China’s Zhejiang province, is currently one of China’s top spots for talent, largely due to the success of DeepSeek AI, which is based there.
Before this, Hangzhou was already on the map as the birthplace and headquarters of Alibaba, but its star had somewhat dimmed compared to its larger neighbor, Shanghai.
Now, Hangzhou is gaining recognition for its innovative startups, dubbed the “six little dragons.” DeepSeek AI and Unitree Robotics, known for its kung fu-performing robot, are the most famous among them.
This surge in activity has attracted an influx of talent to Hangzhou, with many professionals relocating to the city. DeepSeek is now a top choice for young job seekers nationwide, partly also due to the CEO’s progressive views on workplace culture.
As a result, new home transactions in Hangzhou increased by 81% in the two weeks following the 2025 Chinese New Year, compared to the same period last year.
This boom makes Hangzhou an attractive place to find skilled workers, but it also brings competition. To stand out as an employer, it’s crucial to stay current with the latest HR policies and salary trends.
At a Glance
| Category | Details |
| City Tier (Yicai Global) | First-Tier (Rank 6) |
| City Tier (Cloud River Urban Research Institute) | First-Tier (Rank 6) |
| Local Dialect | Wu Chinese (Hangzhou dialect) |
| Population | Approximately 12 million |
| Airport | Hangzhou Xiaoshan International Airport (HGH) |
| Logistics Infrastructure | While Hangzhou has its own port, it primarily relies on bigger ports for international shipping. Ningbo-Zhoushan Port is the closest major port. |
Key Industries in Hangzhou
Hangzhou’s economy is distinguished by its diversified mix of industries, but what’s particularly noteworthy is the dominance of its services sector. In 2024, services accounted for 78% of the city’s economic growth — a high figure for a Chinese city. This is largely driven by Hangzhou’s development into a hub for tech services, digital services and logistics.
The city is also a powerhouse in the digital economy, with internet giant Alibaba leading the way. Hangzhou is a national leader in e-commerce, cloud computing, AI and 5G, positioning it as a premier spot for digital innovation.
High-end manufacturing is another strong area, focusing on smart equipment manufacturing, such as robotics and CNC machine tools, as well as new energy vehicles like smart connected cars and lithium battery technology. Both general and special equipment manufacturing posted robust growth in 2024.
![Jianggan district, Hangzhou, Zhejiang, China. [Photo/Unsplash]](https://www.kinyu.co.uk/wp-content/uploads/2025/04/Hangzhou.webp)
Talent Profile
English Proficiency
Hangzhou ranks third among Chinese mainland cities in terms of English proficiency, with a score of 509, according to EF’s ranking. The city outperforms Tianjin, Guangzhou and Shenzhen!
Zhejiang province, where Hangzhou is located, holds the second spot among all Chinese regions, trailing only behind Hong Kong.
Wages & Social Insurance
Hangzhou’s average salary is a mixed bag. As of 2025, the average annual paycheck is about 388,100 yuan ($53,000), with salaries ranging from 97,260 yuan to a whopping 1.7 million yuan.
Minimum Wage
Hangzhou’s minimum monthly wage for 2025 is set at 2,280 yuan, with an hourly rate of 24 yuan, as determined by the Zhejiang provincial government.
Social Insurance Contributions
On top of the base salary, employers must provide social insurance contributions to their employees.
| Item | Base Salary Range (Chinese yuan) | Employer Contribution | Employee Contribution |
| Pension | 4,812-24,930 | 16% | 8% |
| Medical (incl. Maternity) | 4,812-24,930 | 9.5% | 2% |
| Work Injury | 4,812-24,930 | 0.56%* | — |
| Unemployment | 4,812-24,930 | 0.5% | 0.5% |
| Housing Fund | 2,280-36,675 | 5%-12% | 5% |
To understand how these figures impact your company payroll cost, please use our salary calculator!
Working Hours & Overtime
Employers in Hangzhou must normally pay:
- Regular overtime: 150% of normal wage
- Weekend work: 200% of normal wage
- Holiday work: 300% of normal wage
For more information about this, check out our article on overtime.
Leave Policies
Like the rest of China, first-time employees in Hangzhou must work for more than 12 consecutive months to become eligible for paid annual leave. Once qualified, they are entitled to five days off per year. This entitlement increases to 10 days after 10 years of service and 15 days after 20 years.
Workers in Hangzhou, along with the rest of Zhejiang province, are entitled to 13 days of paid marriage leave upon marriage registration, which is above the national average as of March 2025.
Mothers also get 188 days for maternity leave, while fathers get 15 days for paternity leave.
Does Hangzhou offer a High Temperature Subsidy?
Yes! In Zhejiang province, employers must provide a high temperature allowance to employees working outdoors when temperatures exceed 35 degrees Celsius or indoors if the temperature isn’t kept below 33 degrees Celsius. This allowance is typically paid from June to September.
Eligibility Criteria
Workers qualify for the subsidy if they are engaged in:
- Outdoor labour where temperatures exceed 35 degrees Celsius
- Indoor work where employers fail to reduce temperatures below 33 degrees Celsius
Subsidy Amount and Duration
- Monthly rate: 300 yuan per worker
- Period: Annually from June to September.
The subsidy must be listed separately on pay stubs and cannot be replaced by food, beverages or other benefits.
