China Employee Cost Calculator

Questions from the bench

How much does it cost to hire people in China?

The total cost is the gross monthly salary plus employer social insurance and housing fund contributions, which vary by city and salary level. The calculator shows the full monthly and annual employer cost and employee net take-home pay for any of the 50 largest cities.

What employer costs are mandatory in China?

Employers must generally contribute to five statutory social insurance items (pension, medical, unemployment, work-related injury and maternity insurance) plus the housing provident fund for eligible employees.

Do contribution rates differ between Chinese cities?

Yes, both the contribution base range and the rates are published locally, so employer cost in Shanghai, Beijing, Shenzhen or a Tier-2 city can differ significantly. This tool covers the 50 largest cities by GDP.

How is individual income tax calculated?

The employer withholds individual income tax monthly on a cumulative withholding basis, after deducting social insurance, the housing fund and the statutory monthly basic deduction.

Is the contribution base fixed all year?

Contribution bases are adjusted periodically, commonly once a year (often from July), based on the previous year's average monthly wage and the locally published floor and ceiling.