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MANPOWER
SOCIAL BENEFITS IN CHINA
Employers are required by law to contribute both the company’s and individual’s components of social benefits�
Social benefits in China include:
▪ Pension ▪ Work-related injury
▪ Unemployment ▪ Maternity
▪ Medical ▪ Housing fund
The social benefit contribution rates and contribution base vary across different Chinese cities� As an illustration,
the social benefit contribution base and rates in Beijing and Shanghai are as follows:
Beijing Shanghai
Social benefit contribution base Full month gross salary for the first Full month gross salary for the first
(new employees) working month in the company working month in the company
Social benefit contribution base Employee’s average salary the Employee’s average salary the
(existing employees) previous year previous year
Maximum base in year 2022 RMB31,884 RMB34,188
Minimum base in year 2022 RMB5,869 RMB6,520
Employer’s Contributions
Pension 16% 16%
Medical Insurance 9�8% 10%
Unemployment Insurance 0�5% 0�5%
Injury Insurance 0�2–1�9% 0�2–1�9%
Housing Fund 12% 5–7%
Employee’s Contributions
Pension 8% 8%
Medical Insurance 2%+3 2%
Unemployment Insurance 0�5% 0�5%
Basic Housing Fund 12% 5–7%
Supplementary Housing Fund - 1–5%
The contribution base amount is the employees’ average monthly salary including all types of income such as
basic salary before tax, overtime pay, allowance, bonus and any other salary pay items of each employee in the
previous year� This is subject to a cap of three times the citizens’ average salary in the city the previous year and
the minimum base is defined as 60% of the citizens’ average salary in the city�
Employees shall enjoy social insurance benefits under the following circumstances in accordance with the law:
▪ Retirement; ▪ Illness;
▪ Disability caused by work-related injury or occupational disease; ▪ Unemployment; and
▪ Childbearing
The conditions and standards for employees to enjoy social insurance benefits shall be stipulated by laws, rules
and regulations�
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