Employer Social Security Contributions in China: Structure, Rates, and Key Principles
In China, employers must contribute to several mandatory social security funds for each local employee.
This system is known as “Five Insurances + One Housing Fund” (五险一金).
Rates vary from city to city (Shanghai, Shenzhen, Beijing, Guangzhou, Chengdu, etc.).
The percentages below represent realistic ranges commonly applied nationwide.
- The Five Mandatory Insurances (五险)
1) Pension Insurance (养老保险)
- Employer: 14% – 20%
- Employee: 8%
This is the highest contribution.
Typical rates:
- Shanghai: 16%
- Shenzhen: 13%
- Beijing: 16%
2) Medical Insurance (医疗保险)
- Employer: 6% – 10%
- Employee: 2% + a small fixed amount (often ~3 RMB)
This usually includes the Maternity Insurance, which has been merged into the medical fund in most major cities.
3) Unemployment Insurance (失业保险)
- Employer: 0.5% – 1%
- Employee: 0.5%
Rates have been reduced nationwide since the pandemic.
4) Work Injury Insurance (工伤保险)
- Employer: 0.2% – 1.9%
- Employee: 0%
The rate depends on the industry risk level (office jobs vs. manufacturing).
5) Maternity Insurance (生育保险)
- Employer: 0.5% – 1%
- Employee: 0%
Frequently merged with medical insurance.
- The Housing Fund (住房公积金) — “One Fund”
This is a mandatory housing savings account that helps employees buy or rent property.
- Employer: 5% – 12%
- Employee: 5% – 12%
Actual rates depend on:
- the city
- the industry
- the company’s internal policy (some employers contribute more to attract talent)
Examples:
- Shanghai: 7% standard
- Shenzhen: 5%–12% allowed
- Beijing: 12% (very high)
- Contribution Base: Local Social Average Salary
Social contributions are not calculated on the employee’s actual salary but on a capped base:
- Lower limit: 60% of the local average salary
- Upper limit: 300% of the local average salary
Example (Shanghai 2025, approximate):
- Average monthly salary: 11,396 RMB
- Minimum base: ~6,837 RMB
- Maximum base: ~34,188 RMB
Even a high-paid employee (e.g., 80,000 RMB/month) may have contributions calculated only on the maximum base.
- Total Employer Cost: Typical Range
Adding all contributions:
Total employer social cost = 30% – 45% of gross salary
(depending on the city and the chosen Housing Fund rate)
Approximate examples:
- Shanghai: 37% – 42%
- Shenzhen: 28% – 38%
- Beijing: 40% – 45%
- Important Particularities
✔ The city of employment determines the contribution rates
The employee must usually be registered where they physically work.
✔ Expatriates may be exempt from some contributions
Depending on:
- nationality
- city policy
- work visa status
- bilateral agreements (e.g., Germany, France, Spain)
Shanghai and Shenzhen are known to apply flexible rules for expats.
✔ Social security audits are common
Companies must:
- declare correct contribution bases
- pay every month
- avoid delays (penalties are significant)
For any information, please contact our team to info@opkofinance.com.
