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.
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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.
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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 expertChina
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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.
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.
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.
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.
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.
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.
How our Chinese payroll service works
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.
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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.
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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.
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Chinese payroll FAQs
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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