What monthly payroll covers
- Calculating gross-to-net pay and issuing payslips
- Withholding and filing individual income tax
- Social insurance (pension, medical, unemployment, work injury and maternity) and the housing fund
- Annual income tax reconciliation and year-end bonus planning
Why rates vary
Contribution rates and the minimum and maximum salary bases are set locally and updated every year. A Shanghai employee costs differently from one in Shenzhen or Chengdu, which is why we model employer cost per city before you hire.
Related: Employer of record · Employment & work permits · Accounting & tax
Frequently asked questions
Do foreign employees pay social insurance in China?
Generally yes. Foreigners working for a Chinese entity must be enrolled, although social security agreements between China and some countries can exempt certain contributions.
Can payroll be paid in a foreign currency?
Salaries are normally paid in RMB through the company's Chinese bank account. Foreign employees can later convert and remit after-tax income abroad, subject to bank documentation.
Reviewed by Admin, Choi & Partners · 3 October 2026. This page is general information, not legal advice.