China offers an immense, fast-moving talent market with social-insurance and housing-fund rules set city by city. All-in employer cost runs around 1.35x the gross salary in major cities. Here is what to know before your first China hire.
Employment runs under the Labour Contract Law, with mandatory written contracts and enrolment in five social insurances plus a housing fund whose rates vary by city. A worker without a written contract can claim double wages.
Employer social insurance and housing-fund contributions vary widely by city but commonly add around 30-40% on top of salary in tier-one cities.
Each city sets contribution bases with a floor and ceiling tied to the local average wage, so the effective cost depends heavily on location.
Employees pay individual income tax on a progressive scale plus their own social-insurance and fund share, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Chinese labour contract, payroll, social insurance, and housing fund, handled. One invoice, flat $499 per month.