Payroll & Benefits
Outsource your onboarding, payroll and mandatory benefits. View your payroll summary through our intuitive online portal.
Payroll and Mandatory Benefits in China
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 latest regulations. We manage social insurance contributions such as housing, unemployment, maternity, work-related injury, medical and pension.
Use our portal to check your payroll summary and details.
Our Payroll Platform
Payroll in China you can trust
Your data is safe in our servers
Your company’s payroll data is electronically kept and updated via the Microsoft Azure cloud server.
In House Server
Our offline, in-house, server is routinely backed-up to assure the immutability and security of your data.
Finally, we dedicate space to physically store and organize your data.
Managing your employee's benefits in China
Mandatory benefits in China
Get your benefits taken care of
A mandatory salary percentage contribution that employees and employers must contribute to. The pension fund contribution amount in China varies based on city of employment, but the employer generally pays a higher percentage.
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.
• Medical insurance
• Work injury insurance
• Maternity leave
Employed Chinese citizens must also benefit from a housing fund contribution from their employer. To be used for housing purposes. The housing fund differs from other social securities as it is regarded as a personal fund rather than a pool fund.
Payroll Service Cycle
How Payroll in China works
Collection of client’s information and introduction to HROne’s policies, procedures and online portal. Work calendar, processes, templates, benefits & salary structures confirmed and loaded into the payroll system.
2. Monthly Processing
Payroll information and salary changes (if any). Monthly invoice generated & settled. HROne transfers employee salaries & updates online payroll portal.
Social insurances, housing fund and income tax paid. Employee pay-slip and notification sent out.
3. Year End Processing
Work calendar for the coming year confirmed. Annual salary report prepared, confirmed and reported to the government HR authorities.
HR in China, made easy.
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.
Individual income taxes In China are based on a progressive tax brackets rate:
|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.