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Social security
in China.

SALARY PAYMENT IN Chinese Yuan (CNY, ¥)

CONTRACT LANGUAGES Mandarin & English

PAYROLL TAX 39.50% – 41.20%

PAYROLL CYCLE Monthly 

TIME TO HIRE 12 hours

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180+ countries

China

    Social security in China – Overview

    China’s social security program is considered developed, offering universal healthcare, a pension program, unemployment, and more. Both employees and employers much contribute to social security in China, with each contribution a percentage of the employee’s gross salary at each pay period. Read below for details about China’s social security program.

    What does the social security system in China cover?

    In China, the social security system includes 5 pillars.

    • Pension fund
    • Medical fund
    • Unemployment fund
    • Maternity leave fund
    • Occupational injury fund

    It is important to note that employers in China pay into a housing fund that is additional social security for those in need of affordable housing.

    What are the mandatory contributions for employees to social security in China?

    Employees must contribute to 3 of the 5 pillars. Below is the amount for each as percentage of salary:

    • Pension – 8%
    • Medical – 2%
    • Unemployment – 0.5%

    What are the mandatory contributions for employers to social security in China?

    Employers must contribute between 22% to 26% of salary to the 5 pillars, plus the housing fund. The 5 pillars being

    • Pension – 16%
    • Medical – 10%
    • Unemployment – 0.5%
    • Occupational injury fund – 1%
    • Maternity leave fund
    • Housing fund

    How do mandatory contributions compare to the surrounding countries?

    China is around the average in regards to mandatory contributions for employers. India requires companies to contribute about 15% salary whereas Russia requires companies to contribute around 25% – similar to China. If 22% to 26% sounds high, then it is important to remember that China offers good social security to its citizens.

    Hiring in China, Made Easy

    Your business can easily hire employees in China without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

    FAQs

    In China, employer contribution depends on region. However, it is usually between 22% to 26% of the employee’s salary.

    Social security in China covers the 5 pillars: workplace injury, medical expenses, maternity leave, unemployment and retirement funds.

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