China Labor Cost Calculator: Total Hiring Cost

How much does it cost to hire an employee in China?

Quick Answer

For an initial China labor cost budget, employer social insurance and housing fund contributions of roughly 27%–33% of gross salary can provide a starting reference; this is not a quote. Actual costs vary by city, contribution bases and selected settings, and may fall outside this range. In the calculator’s October 2026 Beijing example, a RMB 15,000 monthly gross salary gives an estimated employer cost of RMB 19,725, using housing fund contributions of 5% on each side and an assumed employer work-injury rate of 0.2%. EOR service fees and additional benefits are separate.

Calculate your China employment cost

Select a city, enter a monthly gross salary and review the employer and employee contribution breakdown.

This employment cost calculator currently supports calculations for 38 cities.

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City

Monthly gross salary (RMB)

⚙️ Assumptions: office industry · housing fund 5% + 5% — adjust

Industry Category (Work Injury Rate)

Employer Housing Fund Rate

Employee Housing Fund Rate

Turn your estimate into a hiring plan

Share your target city, role, proposed salary and expected start date with Out2China. We can discuss the recruitment and employment support needed to put your budget into practice. We will reply within one business day and outline the next step.

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Initial hiring budget

Employer contributions of roughly 27%–33% of gross salary can help with an initial budget; this is not a quote. The result varies by city, contribution-base floors and ceilings, housing-fund ratio and injury-risk category. Some cities can fall above or below this range. Use the calculator for a city-specific estimate.

An employee may retain roughly 84%–90% of gross salary before individual income tax; actual deductions depend on the selected city and inputs and may fall outside this reference range.

Beijing example using 2026 annual contribution bases: RMB 15,000 monthly gross salary gives an estimated employer cost of RMB 19,725, with housing-fund contributions of 5% on each side and an assumed employer injury rate of 0.2%. Service fees and other benefits are separate.

What is included in China employment costs?

A salary offer is the starting point for your hiring budget. Employers also pay social insurance and housing provident fund contributions, which increase the monthly cost of employing someone.

This calculator combines gross salary with the estimated employer contributions. It also shows the employee’s balance after personal social insurance and housing fund deductions, before individual income tax.

Use the result to prepare a headcount budget, assess a salary offer or understand the statutory-cost portion of an employment proposal. Add recruitment fees, bonuses, additional benefits and any EOR or payroll service fees separately where applicable.

How to use the calculator for your hiring plans

Start with the employee’s intended work location and proposed gross salary. Review the housing fund and other available contribution settings, then compare the result with another salary or city.

This helps you answer three practical questions:

How much should we budget each month beyond the employee’s salary?
How does the employer cost change between the cities we are considering?
Which cost items should we expect to see in a recruitment or EOR proposal?

Compare costs alongside the availability of suitable candidates and your operational needs. The employee’s actual work location and applicable contribution arrangements remain part of the hiring decision.

Reading the Beijing example

Under the Beijing assumptions above, the estimated employer cost is RMB 19,725 and the employee balance after social insurance and housing fund deductions is RMB 12,672, before individual income tax.

For the employer, this means budgeting RMB 4,725 above the stated salary for contributions in this scenario. The breakdown shows where that additional cost comes from, making it easier to explain the budget internally or compare it with a provider’s quote.

Why do employment costs differ between Chinese cities?

Cities apply different contribution bases, limits and arrangements. Consequently, the same salary can produce different employer costs in Beijing, Shanghai, Shenzhen or Guangzhou.

Use a consistent salary when comparing cities to understand the contribution differences. Then assess whether that salary is competitive for the particular role, experience level and location.

For market-pay context, read our Average Salary in China guide. Salary benchmarks help you choose an offer; the calculator helps you understand the employer cost of that offer.

Using your estimate for EOR hiring in China

If you plan to hire through an employer of record in China, use this calculation as the salary and statutory-contribution part of your budget. EOR service fees, agreed benefits and one-time charges are separate.

In our standard EOR arrangements, our own licensed Chinese entities act as the legal and contractual employer. Some arrangements use a vetted local partner; we confirm the legal employer before onboarding.

Read our China EOR cost guide for cost components and quote comparisons, EOR pricing for service fees, and EOR services in China for delivery and support scope.

City calculation references

October 2026 budget snapshot. These references include dated assumptions; they do not establish that every component is a confirmed current filing parameter. Select a city above to see your calculation and source periods.

Contribution month: October 2026. Separate bases apply by component. Injury uses the employer’s selected rate and housing uses the selected eligible ratio. Selected source documents; publication years are shown below. A publication year is not necessarily the contribution-base year.

Beijing

Shanghai

Guangzhou

For October 2026, Guangzhou housing-fund bases are RMB 2,680–41,697.

Pension uses reference bases of RMB 5,510–27,549 and employer/employee rates of 16%/8%. Medical uses the 2025 reference range of RMB 6,234–31,179 with reviewed rates of 6%/2%; maternity is charged once, separately, at 0.85% for the employer.

Unemployment uses a current minimum base of RMB 2,680 and a historical ceiling of RMB 41,112, at 0.8%/0.2%. Injury contributions use a reference minimum base of RMB 2,500 and your selected employer rate. These reference bases and unemployment/injury assumptions are not confirmed October 2026 filing parameters.

Shenzhen

Shenzhen medical bases are RMB 6,727–33,633. Employer/employee rates are 6%/2% for Tier 1 or 1.5%/0.5% for Tier 2. Maternity is charged once, separately, at 0.5% for the employer. Local hukou adds a 1% employer pension supplement.

Pension uses the conditional 2025 reference range of RMB 4,775–27,549. Unemployment uses 0.8%/0.2% and bases of RMB 2,700–48,471; continuation into October is unconfirmed, and the upper base is calculated rather than independently confirmed. Injury uses a reference minimum base of RMB 2,700 with no assumed pension ceiling.

Housing-fund minimum bases are RMB 2,700 for new entrants/transfers from September 2026 or RMB 2,520 for existing employees. The RMB 48,471 ceiling is a provisional calculation rather than a confirmed published amount.

Tianjin

Chengdu

Chengdu housing-fund estimates use the county/new-town reference range of RMB 2,200–32,969. The RMB 2,330 minimum for central/new urban areas applies to a different employee location.

Medical contributions use a 2025 combined reference rate of 7.5% for the employer and 2% for the employee. Its current component split remains unconfirmed.

Hangzhou