Cost to Hire an Employee in China (2026)

• Gross salary.
• Employer costs of about 32.7% at a CN¥300,000 salary: CN¥98,100 a year, of which the largest is pension insurance (employer).
• An EOR fee, if you hire without your own entity. The providers in our China guide publish starting prices of US$199–599 per employee per month; see how to choose an EOR in China for the shortlist.

Mandatory employer costs at a CN¥300,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.

Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.

• Employer contributions (Shanghai): Pension 16%, medical incl. maternity 9%, unemployment, work injury from 0.2%, plus the housing fund
• Contribution base (Shanghai): CNY 7,546–37,731 / month from 1 Jul 2026
• Minimum wage (Shanghai): CNY 2,740 / month from 1 Jul 2025
• Public holidays: 13 days from 2025
• Normal working hours: 8 hours a day, 40 a week
• Severance: One month's pay per year of service, capped for high earners

• Rates and bases differ by city, and some change each July. Ask the provider for the rates for the city where your employee is registered.
• Social insurance has a minimum base as well as a maximum: in Shanghai, CNY 7,546 a month from July 2026, so contributions on a salary below that are higher than the percentages suggest.
• Overtime is paid at at least 150% of wages on working days, 200% on rest days if time off in lieu isn't given, and 300% on statutory holidays (Labour Law art. 44). These are not included above.
• Employee contributions and individual income tax are deducted from pay and are not employer costs.

Without your own entity in China, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own Chinese entity. See the comparison in our China guide and EOR vs local entity.