Four Major Insurances

What Are the Four Major Insurances?

The “Four Major Insurances” refer to a mandatory set of social security contributions that employers and employees must pay in China.

These include: pension insurance, medical insurance, unemployment insurance, and work-related injury insurance. These contributions are designed to provide essential protection for employees across key life events such as retirement, illness, job loss, or workplace accidents. 

For international employers hiring in China, participation in these schemes is not optional—non-compliance can lead to fines, payroll disruptions, or legal exposure. 

Breakdown of the Four Major Insurances 

Each of the four insurances has distinct purposes and employer obligations: 

Percentages vary slightly based on region, city policies, and employee location. 

Who Is Covered Under These Insurances? 

All full-time employees with local labor contracts are required to be enrolled. Foreign employees working in China may also be subject to these contributions depending on the city-specific policy. Even companies without a registered entity in China (but hiring through an Employer of Record) must ensure contributions are correctly handled. 

What Is the Employer’s Responsibility? 

Employers must: 

• Register employees with the local social insurance bureau 

• Calculate and contribute both employer and employee portions 

• Submit payments on time each month 

• Keep records and comply with audit requests 

Failure to do so may result in penalties, suspension of business licenses, or reputational damage. 

How TopSource Worldwide Helps 

TopSource Worldwide ensures full compliance by: 

• Managing accurate payroll deductions for each insurance scheme 

• Monitoring local policy changes across China’s provinces 

• Providing compliant contracts through our China-based EOR solution 

• Ensuring foreign companies can hire without a local entity 

Our localized payroll and compliance infrastructure gives global employers peace of mind in one of the world’s most complex HR environments.