--- title: "China" id: "11836" type: "global-payroll" slug: "china" published_at: "2025-08-05T08:46:42+00:00" modified_at: "2026-10-06T15:51:12+00:00" url: "https://topsourceworldwide.com/global-payroll/china/" markdown_url: "https://topsourceworldwide.com/global-payroll/china.md" taxonomy_continent: - "Asia" --- # Payroll Services in China Fully managed Chinese payroll: social insurance and housing fund contributions at your city’s 2026 bases, individual income tax withheld every month and a payslip with every salary, with a named specialist a phone call away. [Get in touch](https://topsourceworldwide.com/contact-us/) TopSource rated 5/5 by our customers - - - - - [Read reviews](#testimonials) ## What Chinese payroll actually involves Chinese payroll is set city by city. Each city fixes its own contribution rates and the salary range they apply to, while individual income tax follows national rates and is withheld every month. ### Social insurance and a housing fund Pension, medical (including maternity), unemployment and work injury insurance, plus the housing fund, are paid on salary within limits that Beijing and Shanghai reset every July. ### About a third on top of salary With the office work injury rate and the housing fund at its maximum, employer contributions add 38.5% to salary in Beijing and 32.7% in Shanghai, up to each city’s ceiling. ### Income tax from 3% to 45% Income tax is withheld monthly on a cumulative basis at 3% to 45%, after a basic deduction of CNY 5,000 a month and special deductions for children, parents and housing. ### Paid at least monthly Wages must be paid at least once a month with a payslip. Under Shanghai’s rules since 1 August 2026, bank payments cannot be delayed when payday falls on a holiday. ### No opting out of social insurance Since 1 September 2025, an agreement not to pay social insurance is void, and employees who resign over unpaid contributions can claim severance. ## Our Partners Globally ## Calculate Your Employee Costs in China Enter a gross annual salary to see the employer cost of an employee in Beijing for July 2026 to June 2027: pension 16%, medical insurance including maternity 9.8%, unemployment 0.5%, work injury at the 0.2% office rate and the housing fund at 12%, each on salary up to the ceiling of CNY 36,348 a month. Rates and ceilings differ in other cities. ##### Employment Cost Calculator *Indicative figures only and not definitive legal advice. Local regulations change frequently. [Consult an expert](/contact-us/) ##### China Annually Monthly | | British Pound | China | | --- | --- | --- | | Base Salary (per month) | | | | Employer Contributions | | | | Total Cost (Annual) | | | | Total Cost (Monthly) | | | Employer of Record services in [Learn more](#) Payroll Outsourcing in [Learn more](#) ## Know your Chinese hiring costs before you commit Tell us the role, the city and the salary. We’ll send back the full employer cost and the employee’s net pay at that city’s 2026 rates within one business day. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) > “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.” Director of Research Operations, > “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.” Chief Human Resources Officer, > “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.” Senior Manager, Human Resources , ## Employer Costs in China Explained A Chinese employee costs roughly a third more than gross salary in social insurance and housing fund contributions, depending on the city and the housing fund rate the employer chooses. Contributions stop at each city’s ceiling, so the share falls for higher earners. Here’s the breakdown. #### Social insurance and the housing fund Employers pay 16% of salary into pension insurance and employees 8%. Medical insurance, which now includes maternity cover, costs employers 9.8% in Beijing and 9% in Shanghai, where 0.5% of it is a local supplementary charge, and employees 2%, plus CNY 3 a month in Beijing. Unemployment insurance is 0.5% each, and work injury insurance, paid by the employer alone, ranges from 0.2% to 1.9% by industry risk. The housing fund is a matched savings scheme: employer and employee pay the same rate, between 5% and 12% in Beijing and between 5% and 7% in Shanghai. New employees must be registered for social insurance and the housing fund within 30 days of joining, and social insurance is paid monthly through the local tax bureau. #### Contribution bases for July 2026 to June 2027 Contributions are charged on each employee’s contribution base, normally their average monthly salary for the previous year, kept within a floor and a ceiling each city sets from its average wage. From July 2026 the range is CNY 7,270 to 36,348 a month in Beijing and CNY 7,546 to 37,731 in Shanghai, where the ceiling is three times the 2025 average monthly wage of CNY 12,577. The housing fund uses the same ceilings, with floors at the local minimum wage. Both cities published their 2026 limits in August and applied them from July, so payroll has to recalculate the months in between and collect the difference. Beijing allows the 2026 differences to be paid by the end of December without affecting employees’ records. #### Individual income tax and bonuses Employers withhold individual income tax every month on a cumulative basis and file it by the 15th of the following month. Annual taxable income is taxed at 3% to 45% after a basic deduction of CNY 60,000 (CNY 5,000 a month), the employee’s social insurance and housing fund contributions, and special deductions for children’s education, infant care, elderly parents, housing loan interest or rent, continuing education and serious illness. Employees reconcile the year’s tax between 1 March and 30 June. Until the end of 2027, an annual one-off bonus can be taxed separately from salary, at the rate found by dividing it by 12, and foreign employees can choose tax-free housing, language training and children’s education allowances instead of the special deductions. #### What a Chinese employee actually costs For an employee in Beijing earning CNY 30,000 a month, the employer pays CNY 11,550 in social insurance and housing fund contributions with the housing fund at 12%, a total cost of CNY 41,550 a month, 38.5% on top of salary. In Shanghai, with the housing fund at 7%, the same salary costs CNY 39,810. At CNY 60,000 a month both ceilings apply and the employer’s share falls to about 23% in Beijing and 21% in Shanghai. Minimum wages are set locally: CNY 2,540 a month in Beijing since September 2025 and CNY 2,740 in Shanghai since July 2025. In Shanghai the minimum excludes overtime pay and the employee’s own social insurance and housing fund contributions, which the employer pays on top. #### Contracts, working time, leave and severance A written employment contract must be signed within a month of the start date; after that the employer owes double wages for each month without one, for up to 11 months. Probation can last up to one month on contracts of three months to a year, two months on contracts of up to three years and six months on longer or open-ended contracts. Standard hours are 8 a day and 40 a week, and overtime is capped at 36 hours a month and paid at 150% on workdays, 200% on rest days without time off in lieu and 300% on public holidays. Employees get 5 to 15 days of paid annual leave depending on their total years of work, and 13 public holidays a year since 2025. Severance is one month’s salary for each year of service, with monthly salary capped at three times the local average wage and service at 12 years for high earners. ## Chinese payroll contributions and taxes, 2026 | Item | Employer | Employee | Applies to | | --- | --- | --- | --- | | Pension | 16% | 8% | Salary within the city’s contribution base | | Medical, including maternity | 9.8% Beijing, 9% Shanghai | 2%, plus CNY 3 a month in Beijing | Salary within the contribution base | | Unemployment | 0.5% | 0.5% | Salary within the contribution base | | Work injury | 0.2% to 1.9% | — | Rate set by industry risk | | Housing fund | 5% to 12% Beijing, 5% to 7% Shanghai | Same rate as the employer | Salary up to CNY 36,348 Beijing, CNY 37,731 Shanghai | | Contribution base, July 2026 to June 2027 | Beijing CNY 7,270 to 36,348; Shanghai CNY 7,546 to 37,731 | Same base | Monthly salary range for social insurance | | Individual income tax | — | 3% to 45% | After a CNY 60,000 annual basic deduction | ### Individual income tax rates in China, 2026 | Annual taxable income | Rate | Quick deduction | | --- | --- | --- | | Up to CNY 36,000 | 3% | CNY 0 | | CNY 36,000 to 144,000 | 10% | CNY 2,520 | | CNY 144,000 to 300,000 | 20% | CNY 16,920 | | CNY 300,000 to 420,000 | 25% | CNY 31,920 | | CNY 420,000 to 660,000 | 30% | CNY 52,920 | | CNY 660,000 to 960,000 | 35% | CNY 85,920 | | Above CNY 960,000 | 45% | CNY 181,920 | ### Employer cost in Beijing and Shanghai, 2026 | Monthly gross | Beijing employer contributions | Beijing total cost | Shanghai employer contributions | Shanghai total cost | | --- | --- | --- | --- | --- | | CNY 15,000 | CNY 5,775.00 | CNY 20,775.00 | CNY 4,905.00 | CNY 19,905.00 | | CNY 30,000 | CNY 11,550.00 | CNY 41,550.00 | CNY 9,810.00 | CNY 39,810.00 | | CNY 60,000 | CNY 13,993.98 | CNY 73,993.98 | CNY 12,338.04 | CNY 72,338.04 | The employer cost table uses the 0.2% work injury rate for office work and the maximum housing fund rate, 12% in Beijing and 7% in Shanghai; employers can choose a lower housing fund rate. At CNY 60,000 both cities’ ceilings apply. These are TopSource calculations from the verified 2026 rates. Rates, bases and amounts shown are for 2026 and were verified on 6 October 2026 against the Beijing and Shanghai 2026 contribution base notices, the Beijing housing fund notice, Shanghai’s medical insurance rate notice and wage payment rules, local minimum wage notices and Chinese tax and labour law. This page is general information, not tax or legal advice. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) ## How our Chinese payroll service works 1. Map your setup We confirm your entity’s social insurance, housing fund and tax registrations, the city where each employee is insured, their contribution base and housing fund rate, and the handbook rules that set pay, overtime and leave. 2. Migrate or onboard New hires are registered for social insurance and the housing fund within 30 days. Cumulative income tax, deductions and leave balances for the year are carried across so nothing is lost at the changeover. 3. Run and review Each period you receive a payroll report for approval before anything is paid: gross to net per employee, social insurance, housing fund and income tax, with variances explained. Nothing is paid until you approve it. 4. File and pay We pay salaries with a payslip, file income tax by the 15th and pay social insurance and housing fund contributions every month, whether your team works in Beijing, Shanghai, Shenzhen or anywhere else in China. 5. Stay current Contribution bases change every July and cities revise rates and minimum wages on their own timetables. We apply each change as it takes effect, including back-dated base adjustments, and re-verify the figures on this page. ## Why Choose TopSource as Your Payroll Company in China TopSource for payroll, Employer of Record or any other of our services represents a simpler, more reliable and transparent option. We don’t hide fees or sneak price increases. We run Chinese payroll in-house and file under your entity’s own social insurance, housing fund and tax registrations rather than a bureau’s, so the same team that files your income tax answers your calls. You get a named account manager, one consolidated monthly invoice covering salaries, contributions, taxes and fees, and one live Portico view of China beside every other country we run for you. Portico syncs with your time-tracking, leave and HR systems via API – set up by our onboarding team, not left to yours. GDPR, SOC 2 and ISO 27001 certified. [Global Payroll](https://topsourceworldwide.com/global-payroll/) [Get Started](https://topsourceworldwide.com/contact-us/) ## Other services Accelerating your growth in China and beyond #### TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment. ### Global Employer of Record (EOR) services With our Global EOR services, you can hire talent in any country without establishing a legal entity. We handle employment contracts, payroll, benefits, and compliance on your behalf, enabling fast, risk-free global expansion. ### Actionable HR Advisory On demand access to our fractional and regional HR professionals who understand local laws, cultures, and best practices. Bespoke talent intelligence including salary, business and talent market benchmarking. ### Global entity management Our global entity management team helps you establish and maintain your corporate entities worldwide. We ensure full compliance with local laws and regulations, streamline administrative processes, and minimize risk — so you can focus on growing your business. ### Accounting We offer comprehensive accounting solutions tailored to meet your international needs. From bookkeeping and financial reporting to tax filings and audits, our services help you maintain transparency, accuracy, and compliance in every jurisdiction. ## Meet our experts for China Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way. [Our People](https://topsourceworldwide.com/our-people/) ## Beyond a payroll service **A globalization accelerator** A payroll platform for your employees is just the beginning. We are constantly evaluating your entire organisation to identify compliance issues and ways to accelerate your global growth. - [Payroll platform](#) - [Audit](#) - [Intelligence](#) - [Advisory](#) ##### Payroll platform ###### Global payroll simplified Your intuitive hub for paying global teams. Simple, powerful, and designed to scale with you — no complexity, just clarity. ##### Audit ###### Eliminate barriers to growth Avoid compliance issues across your global workforce and uncover opportunities to improve profitability. On a quarterly basis we’ll help you audit your global talent strategy to ensure it aligns with your business goals. ##### Intelligence ###### Build a data-driven talent strategy Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits. ##### Advisory ###### Expert guidance that turns complexity into clarity. Whether you’re managing a global acquisition or entering a new market, you get clear guidance to navigate complex decisions, avoid delays, and accelerate your global expansion. ## Chinese payroll FAQs ### What are employer social insurance contributions in China in 2026? They vary by city. In Beijing employers pay 16% pension, 9.8% medical including maternity, 0.5% unemployment and 0.2% to 1.9% work injury; in Shanghai medical is 9%. The housing fund adds 5% to 12% in Beijing and 5% to 7% in Shanghai. ### What are the 2026 social insurance bases in Beijing and Shanghai? From July 2026 to June 2027, contributions apply to monthly salary between CNY 7,270 and 36,348 in Beijing and between CNY 7,546 and 37,731 in Shanghai. Salaries above the ceiling pay on the ceiling. ### What are the individual income tax rates in China in 2026? Annual taxable income is taxed at 3% to 45% after a basic deduction of CNY 60,000, social insurance and housing fund contributions and special deductions. Employers withhold the tax every month on a cumulative basis. ### How much does it cost to employ someone in China? In Beijing, with the housing fund at 12%, an employee on CNY 30,000 a month costs CNY 41,550 a month; in Shanghai, with the housing fund at 7%, CNY 39,810. Tell us the role, city and salary and we’ll send the full cost within one business day. ### What is the minimum wage in Beijing and Shanghai? CNY 2,540 a month in Beijing from 1 September 2025 and CNY 2,740 in Shanghai from 1 July 2025. In Shanghai the minimum excludes overtime pay, certain allowances and the employee’s own social insurance and housing fund contributions. ### How often must salaries be paid in China? At least once a month, on a payday agreed with the employee, with a payslip each time. Under Shanghai’s rules in force since 1 August 2026, bank payments cannot be delayed when payday falls on a weekend or public holiday. ### Is the annual bonus taxed separately in China? Until 31 December 2027, an annual one-off bonus can be taxed separately from salary: the bonus is divided by 12 to find the rate, which then applies to the whole bonus. Employees can instead add it to their annual income if that costs less. ### How much annual leave do employees get in China? Five days after one year of total work, ten after ten years and fifteen after twenty years, on top of 13 public holidays a year since 2025. ### How does termination work in China? Employers can only terminate on the grounds set out in the Labour Contract Law, some of which need 30 days’ written notice or a month’s pay in lieu. Severance is one month’s salary per year of service, with salary capped at three times the local average and service at 12 years for high earners. ### Can a foreign company run payroll in China without an entity? Employing staff directly in China requires a local entity, such as a wholly foreign-owned enterprise (WFOE); representative offices hire through licensed agencies. Without an entity, the usual route is an Employer of Record. TopSource can run payroll for your Chinese entity or employ your team through our Employer of Record service. [Couldn’t find what you were looking for?](/contact-us/) ## Looking at other markets too? We help organizations employ and pay teams in 164 countries. 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krone](https://topsourceworldwide.com/global-payroll/norway/) [Oman Capital: Muscat Currency: Rial](https://topsourceworldwide.com/global-payroll/oman/) [Pakistan Capital: Islamabad Currency: Pakistani Rupee](https://topsourceworldwide.com/global-payroll/pakistan/) [Panama Capital: Panama City Currency: Balboa (PAB) and United States dollar (USD)](https://topsourceworldwide.com/global-payroll/panama/) [Papua New Guinea Capital: Port Moresby Currency: Papua New Guinean Kina](https://topsourceworldwide.com/global-payroll/papua-new-guinea/) [Paraguay Capital: Asunción Currency: Paraguayan guaraní](https://topsourceworldwide.com/global-payroll/paraguay/) [Peru Capital: Lima Currency: Peruvian sol](https://topsourceworldwide.com/global-payroll/peru/) [Philippines Capital: Manila Currency: Peso](https://topsourceworldwide.com/global-payroll/philippines/) [Portugal Capital: Lisbon Currency: Euro](https://topsourceworldwide.com/global-payroll/portugal/) [Puerto Rico Capital: San Juan Currency: United States dollar](https://topsourceworldwide.com/global-payroll/puerto-rico/) [Qatar Capital: Doha Currency: Riyal](https://topsourceworldwide.com/global-payroll/qatar/) [Romania Capital: Bucharest Currency: Romanian Leu](https://topsourceworldwide.com/global-payroll/romania/) [Rwanda Capital: Kigali Currency: Rwandan franc](https://topsourceworldwide.com/global-payroll/rwanda/) [Saint Kitts & Nevis Capital: Basseterre Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-kitts-nevis/) [Saint Lucia Capital: Castries Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-lucia/) [Saint Maarten Capital: Philipsburg Currency: Caribbean guilder (Cg)](https://topsourceworldwide.com/global-payroll/st-maarten/) [Saint Vincent & the Grenadines Capital: Kingstown Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-vincent-the-grenadines/) [Saipan Capital: Capitol Hill Currency: U.S. Dollar](https://topsourceworldwide.com/global-payroll/saipan/) [San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/global-payroll/san-marino/) [Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/global-payroll/saudi-arabia/) [Senegal Capital: Dakar Currency: West African CFA franc](https://topsourceworldwide.com/global-payroll/senegal/) [Serbia Capital: Belgrade Currency: Serbian dinar](https://topsourceworldwide.com/global-payroll/serbia/) [Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/global-payroll/seychelles/) [Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/global-payroll/slovakia/) [Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/global-payroll/slovenia/) [Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/global-payroll/solomon-island/) [South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/global-payroll/south-korea/) [South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/global-payroll/south-sudan/) [Sri Lanka Capital: Colombo Currency: Sri Lankan Rupee](https://topsourceworldwide.com/global-payroll/sri-lanka/) [Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/global-payroll/sudan/) [Sweden Capital: Stockholm Currency: Swedish krona](https://topsourceworldwide.com/global-payroll/sweden/) [Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/global-payroll/taiwan/) [Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/global-payroll/thailand/) [Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago dollar](https://topsourceworldwide.com/global-payroll/trinidad-tobago/) [Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/global-payroll/tunisia/) [Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/global-payroll/uganda/) [US Virgin Island Capital: Charlotte Amalie Currency: Dollar](https://topsourceworldwide.com/global-payroll/us-virgin-island/) [Venezuela Capital: Caracas Currency: Venezuelan bolívar](https://topsourceworldwide.com/global-payroll/venezuela/) [Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/global-payroll/zambia/) [Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/global-payroll/zimbabwe/) Load more