Payroll & Benefits in China
Outsource your payroll and mandatory benefits in China.
Payroll in China you can trust
Handling your payroll in China & ensuring the privacy, safety and accuracy of your data as well as a timely payroll process in compliance with the local regulations.
We manage all mandatory social insurances in China such as pension, medical, unemployment, maternity, work-related injury, housing fund and other compliance funds.
Cloud Server
Your company's payroll data is electronically kept and updated via Microsoft Azure cloud server.
In-house Server
Our offline, in-house server is backed-up daily to assure the immutability and security of your data.
Hard Copies
In accordance with Chinese law, we dedicate space to physically store and organize your data.
Service Details: Payroll Process
- dedicated account manager assigned to client
- client required material collection
- HROne introduces policies and online portal
- onboarding documents set up:
- work calendar
- processes: monthly, year-end, on/off boarding
- templates: labor contract, payment notice, information exchange form, employee registration form
- other benefits, and salary structure
- setting up client’s payroll policy & templates into HROne system
- client provides personal and payroll details of each employee to HROne
- HROne uploads client’s employees’ information into systemÂ
- Online portal access granted to client and client’s employees
- HROne communicates changes in government policies (if any)
- client communicates compensation changes with HROne (if any)
- HROne sends payment notice to client
- client confirms and pays payment notice
- salary paid to employee/s
- mandatory benefits and individual income tax paid for employees
- online portal updated
- client and HROne confirm work calendar for the coming year
- annual salary report including offboarded employees sent to client
- client confirms annual salary report
- HROne submits the updated report to the government
- government updates social security and housing fund policies
- HROne briefs government’s policies updates to client
- HROne implements updated policies into system
- HROne removes offboarded employees’ data upon request.Â
- Client sends termination notice of service
- client and HROne confirm handover process, accounts, materials & information list
- Client & HROne confirm plan of offboarding employees (employees resign)
- HROne issues last payment notice inclusive of historical balance to client
- client confirms and pays last payment
- HROne hands over accounts, materials & information to client
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- HROne refunds deposit balance to client
Keep track of all benefits, bonuses & taxes
Our Payroll Platform
All HROne clients have access to their payroll records via the HROne payroll portal.
- Mandatory Social Contributions Breakdown
- Income Tax Breakdown
- Pay-slip Record
- Service Invoices Record
- Employee Labor Contract Info
- HROne Account Manager Contact
Calculations & Gov Reports
Breakdown of employees contributions
Calculation of company average salary for company social insurance base amount
Government payroll reports/reporting
Payroll costs reports
Payroll Communications
Communicating changes in government policies & employee status.
Dedicated Account Manager
Bilingual communication (English & Chinese)
The social insurances
Mandatory Benefits in China
We handle all mandatory social security schemes of payroll in China such as pension fund, medical insurance & Housing fund.
Pension Fund
Mandatory retirement fund that employees and employers contribute to. The amount varies based on the city of employment, but employers generally pays a higher percentage.
Medical Insurance
China requires that all employers provide basic health insurance coverage for emergency situations. An employer cost of roughly 2% of the employee's salary is due as health insurance payment.
Housing Fund
Employed Chinese citizens must also benefit from a housing fund contribution from their employer. Unlike the pension fund, The housing fund is regarded as a personal fund rather than a pool fund.
Avoiding the HR Bureau
Payroll Compliance in China
Complying with wage and hour laws is crucial to avoid costly lawsuits and penalties. HROne guaranties that all payroll activities are expertly recorded and organized as to be indisputable.
Frequently Asked Questions
Payroll & mandatory benefits are included in our China Employer of Record and our PEO services.
In many countries, PEO and EOR are the same thing and can be interchanged. However in countries such as China and the USA, PEO and EOR refer to different services:
With Employer of Record (EOR), the service provider takes on the responsibility & liability of the employer since the client does not have a legal entity in the country of interest.
With Professional Employment Organization (PEO), the service provider manages hiring, employment and payroll, but does not take on the responsibility or liability of the employer since the client has a legal entity in the country of interest.
The 13th month bonus in China refers to a bonus equal to one month’s salary that is usually paid at the onset of Chinese New Year.
This 13th month bonus is not mandatory unless explicitly stated in the labor contract upon signing. A 13th month bonus depends on the company’s performance as well as the employee’s performance.
It is possible for employees to receive an even higher bonus (14th or even 15th month bonus) depending on these factors.
Employees in China are entitled to annual leave days based on their work experience.
After working for their employer for 1 year. Employees who have worked less than 10 years are entitled to 5 days paid annual leave.
Employees who have between 10 and 20 years of experience are entitled to 10 days paid annual leave.
Employees with over 20 years of experience are entitled to 15 days of paid annal leave.
Using an Employer of Record/PEO service is often regarded as the modern approach to expanding into China. As long as you do not need to invoice in China, this is a perfect solution for foreign SMEs that want to start their business here. With an employer of record, you can legally hire and manager your team in China, avoiding the time and money required to set up a company.
HROne, the Employer of Record, is legally responsible for your staff during their term of employment in China.
We can hire a local Chinese employee in as little as one day!
Your staff members can be employed and located anywhere in China. Their employment status will be recorded by the local bureau according to their location.
Not necessarily. Staff members can work remotely from home or another location. However, we offer office space rentals upon request.
Yes, our Employer of Record solution can be used to hire both local and foreign staff.
| Bracket | Annual Taxable Income (RMB) | Tax Rate (%) | Quick Deduction |
| 1 | No more than 36,000 | 3 | 0 |
| 2 | Between 36,000 and 144,000 | 10 | 2,520 |
| 3 | Between 144,000 and 300,000 | 20 | 16,920 |
| 4 | Between 300,000 and 420,000 | 25 | 31,920 |
| 5 | Between 420,000 and 660,000 | 30 | 52,920 |
| 6 | Between 660,000 and 960,000 | 35 | 85,920 |
| 7 | More than 960,000 | 45 | 181,920 |
Social benefits in China are divided into two categories:
- Five mandatory social insurances – These include pension insurance, medical insurance, unemployment insurance, work-related injury insurance, and maternity insurance.
- Housing fund – The purpose of this is to allow employees to save money to buy a house in China.