Automate payroll in China with Al-powered calculations, local Social Insurance Fund (pension, medical, unemployment, work injury, maternity) handling, and compliant payslips generated in seconds.
Establish credibility and match buyer objections: compliance, local knowledge, pricing clarity, and support.
Local Compliance Without Local Overhead: Ontop automates China tax calculations and Ji Ti He Tong (Collective Contract) requirements so you avoid setting up a local entity. The platform handles Annual Bonus (Nian Zhong Jiang) payments, wage floors, and regional tax variation to keep payroll compliant and predictable. Transparent Pricing And Fees: Pricing clearly shows payroll fees, exchange rates, and contractor or EOR plan costs before payment.
Finance teams get predictable statements with no surprise charges. Human Support When It Matters: Live support helps resolve local queries and edge cases. Dedicated onboarding specialists guide tax registration and social security setup so teams move from hire to pay faster. Global Coverage With China Expertise: Ontop supports hiring across 150+ countries while providing China-specific workflows. Proration for Annual Bonus (Nian Zhong Jiang), Ji Ti He Tong (Collective Contract) compliance, and State Taxation Administration (STA) deadline management. Scale globally while keeping local accuracy.
Provide fast facts: minimum wage, pay frequency, bonuses, regional salary ranges. Satisfies informational intent and helps long-tail SEO.
Minimum Wage And Pay Frequency: China's minimum wage is CNY 2,690/month (Beijing 2026; varies by province) Monthly. With Annual Bonus (Nian Zhong Jiang), annual total reaches the statutory requirements. Many employers pay 1-3 months common; 13th month widespread or prorate into Monthly payments. Ontop supports both structures.
Average Salary And Net Take Home: National average salary is ~CNY 120,000 per year, about ~CNY 10,000 per month gross. Ontop displays gross-to-net breakdowns so payroll and offers align with local expectations.
Regional Variation To Budget For: Salaries run higher in Beijing and Shanghai. Beijing averages CNY 15,000 - 50,000 (~50%% above national). Shanghai around CNY 15,000 - 50,000 (~50%%). Ontop lets you model regional differences in offers and cost projections.
Annual Bonus (Nian Zhong Jiang): China commonly provides 1-3 months common; 13th month widespread. Payroll logic captures proration rules so payslips match local contract terms.
China's wage structure includes Ji Ti He Tong (Collective Contract) that set sectoral minimums. Buyers search "minimum wage by sector," "JHT wages." Captures mid-funnel research intent.
National Statutory Minimum Wage: China's national minimum wage is CNY 2,690/month (Beijing 2026; varies by province) Monthly. Applies to all workers unless a higher sectoral minimum applies. Revised annually.
Ji Ti He Tong (Collective Contract) Sectoral Minimums: China has multiple active Ji Ti He Tong (Collective Contract) agreements covering specific sectors. These set minimums higher than the statutory minimum depending on industry and role. Sectors include key local industries.
How Sectoral Wage Floors Affect Payroll: If an employee falls under a specific JHT, you must pay the sectoral minimum. Underpaying triggers wage claims, back pay, and penalties. Ontop stores and applies the correct rate based on employee role and sector.
How Ontop Applies Correct Wage Floors: Ontop maintains an updated JHT database and automatically applies the correct minimum wage. During payroll preview, the system displays which agreement applies and confirms compliance. Removes manual compliance risk.
National Average Salary Benchmark: Colombia's national average salary is approximately ~CNY 120,000 per year. Varies by role, experience, and sector. Larger cities run up to 20% higher; rural regions typically align with the statutory minimum.
High-Cost Cities: Beijing and Shanghai: Beijing offers salaries ~50%% above national average, particularly in tech and finance. Typical range: CNY 15,000 - 50,000 annually for mid-level roles. Shanghai offers ~50%% premium with strength in innovation and services. Typical range: CNY 15,000 - 50,000.
Secondary Cities and Regional Variation: Secondary cities generally sit between 5% to 10% above the national average, depending on local industries. Rural regions typically align with or fall below the national average. When budgeting for diverse teams, account for market research to ensure equitable offers.
How Ontop's Cost Calculator Handles Regional Modeling: Input location and role to preview total employer cost. See how regional differences, wage floors, and benefits combine to show true cost of employment by city.
Buyers search "contract types China," "permanent vs fixed-term." Legal structure and misclassification risk are critical for compliance.
Permanent Full-Time Employment (Wu Gu Ding Qi Lao Dong He Tong (Permanent)): Standard indefinite contract with full statutory protections. Employees get all mandatory benefits (Annual Bonus (Nian Zhong Jiang), Nian Jia (Annual Leave), sick leave, maternity leave, Jing Ji Bu Chang Jin (Economic Compensation)). Termination requires just cause or economic redundancy with notice and severance payout. Employer Social Insurance Fund (pension, medical, unemployment, work injury, maternity) contributions typically ~30-40% total employer (pension 16% + medical 9% + unemployment 0.5% + work injury ~0.4% + maternity 0.8%) - varies by city%.
Fixed-Term Contracts (Gu Ding Qi Lao Dong He Tong (Fixed Term)): Limited-duration contracts (typically for a fixed period, renewable). Used for project work, seasonal roles, or temporary needs. Same taxes and benefits as permanent, but with defined end date. Subject to renewal restrictions and JHT rules. Simpler termination but accrued benefits paid in full.
Part-Time Contracts: Reduced hours subject to local statutory limits. Salary and benefits are prorated by hours worked. Social Insurance Fund (pension, medical, unemployment, work injury, maternity) and taxes apply pro-rata. Ontop handles prorated Annual Bonus (Nian Zhong Jiang) automatically.
Apprenticeships: Training contracts for students or junior profiles with reduced Social Insurance Fund (pension, medical, unemployment, work injury, maternity) contributions where applicable. Includes structured training and on-the-job learning. Misclassification can trigger reclassification penalties.
Self-Employed / Lao Wu Pai Qian / Zi You Zhi Ye Ren: Independent contractor operating own business. No employer obligations, only invoice payments. Contractor handles own Social Insurance Fund (pension, medical, unemployment, work injury, maternity), taxes, invoicing. Critical: if worker appears to be employee (direction, control, exclusivity), you face reclassification and back-pay exposure.
Compliance Differences Between Contract Types: Tax rates, Social Insurance Fund (pension, medical, unemployment, work injury, maternity) contributions, benefits, termination rules, and Jing Ji Bu Chang Jin (Economic Compensation) accrual vary by type. Misclassification triggers wage claims, penalties, and reclassification costs.
How Ontop Templates & Payroll Logic Handle Each Type: Ontop provides compliant templates for each type and applies correct payroll logic: permanent benefits, fixed-term accruals, part-time prorations, apprenticeship rates, and Lao Wu Pai Qian / Zi You Zhi Ye Ren invoicing. Avoids misclassification risk.
Explain operational flow from onboarding to monthly payments. Reduces friction and clarifies steps.
Onboarding And Registration: Ontop handles registration with China tax authorities (State Taxation Administration (STA)) and Social Insurance Fund (pension, medical, unemployment, work injury, maternity) and collects required IDs. Automation plus human verification reduces setup time and avoids compliance gaps. Typical onboarding: a few business days.
Monthly Payroll Calculation: Gross-to-net includes progressive 3% up to CNY 36,000 / 10% / 20% / 25% / 30% / 35% / 45% tax rates, ~10.5% employee (pension 8% + medical 2% + unemployment 0.5%)% Social Insurance Fund (pension, medical, unemployment, work injury, maternity), and Annual Bonus (Nian Zhong Jiang) proration. Platform applies region-specific tax bands, JHT rules, and wage floors for accurate payslips.
Contributions And Filings: Employer contributions include Social Insurance Fund (pension, medical, unemployment, work injury, maternity) (~10.5% employee (pension 8% + medical 2% + unemployment 0.5%)) and applicable local surcharges. Submitted according to statutory deadlines to Social Insurance Fund (pension, medical, unemployment, work injury, maternity) on your behalf. Ontop maintains records for annual reconciliation.
Payment Execution And Reconciliation: Payments in CNY ¥ (Chinese Yuan) via local bank transfers to local accounts. Ontop shows conversion rates and fees before approval. Audit-ready receipts and instant USD payout options available.
EOR Vs Lao Wu Pai Qian / Zi You Zhi Ye Ren: Your Options: Choose Lao Wu Pai Qian / Zi You Zhi Ye Ren plans for flexible work or full EOR for permanent employees. Ontop supports both and highlights compliance differences so you pick the right structure.
Finance teams search "China payroll deadline." Captures operational queries and establishes Ontop as deadline-management partner.
Monthly Tax Withholding & Social Insurance Fund (pension, medical, unemployment, work injury, maternity) Payment Deadlines: State Taxation Administration (STA) tax withholding due March 31 (annual individual income tax reconciliation) via State Taxation Administration (STA) online portal. Social Insurance Fund (pension, medical, unemployment, work injury, maternity) contributions due Monthly by 15th to Social Insurance Fund (pension, medical, unemployment, work injury, maternity) authority. Late payments trigger Late social insurance: 0.05%/day; late IIT: 0.05%/day; Housing Fund late: 0.05%/day penalty plus interest.
Annual Compliance Deadlines: Monthly social insurance + housing fund declarations: annual Social Insurance Fund (pension, medical, unemployment, work injury, maternity) reconciliation, due By 15th of month. Ge Ren Suo De Shui Hui Suan: due March 31. Nian Du Suo De Ming Xi: annual employee tax certificate due By March 31.
Payroll Processing Calendar (Monthly Example):
Monthly payroll - social insurance + housing fund by 15th - IIT withholding - annual reconciliation March. Key Regulatory Bodies & Filing Channels: State Taxation Administration (STA):
Individual Income Tax (IIT). Online filing via official portals.
Ministry of Human Resources and Social Security (MOHRSS): Social insurance and labor.
Local Housing Provident Fund Management Center: Housing Fund contributions.
Penalties for Non-Compliance: Late State Taxation Administration (STA) remittance:
Late social insurance: 0.05%/day; late IIT: 0.05%/day; Housing Fund late: 0.05%/day plus interest. Social Insurance Fund (pension, medical, unemployment, work injury, maternity) shortfalls result in fines. Missing documentation increases audit exposure. Audit exposure increases with missing filings. Willful violations can trigger criminal liability.
How Ontop Manages Deadlines Automatically: Ontop tracks all compliance deadlines, sends alerts before due dates, and submits filings automatically. Finance team approves payroll ahead of deadlines. All documentation audit-ready.
Buyers search "how much leave China," "maternity leave," "paid leave entitlements." Impacts total cost of employment and satisfies planning intent.
Annual Bonus (Nian Zhong Jiang) (January (pre-Spring Festival)): All permanent employees entitled to 1-3 months common; 13th month widespread. Typically paid in January (pre-Spring Festival), or prorated across year. Statutory bonus, not discretionary. Must factor into annual payroll cost.
Nian Jia (Annual Leave): Minimum 5 days (1-10 yrs) / 10 days (10-20 yrs) / 15 days (20+ yrs) of paid vacation annually. Unused leave carryover varies by JHT. Some allow unlimited carryover; others limit carryover. Leave paid at regular rate upon termination if unused.
Bing Jia (Sick Leave): Statutory sick leave paid at Employer pays at minimum wage rate for sick leave periods. Medical certification required after a few consecutive days as per local law. Social Insurance Fund (pension, medical, unemployment, work injury, maternity) may provide supplementary coverage for longer absences.
18 weeks (98 days) of maternity leave. Paid at Full pay from employer; maternity insurance reimburses (where registered) by the local health entity. Additional parental leave may apply.
Public Holidays: China observes ~11 public holidays (7 Golden Week periods) national holidays annually. Employees receive full pay or premium pay if required to work. Regional variations exist. Jing Ji Bu Chang Jin (Economic Compensation): Permanent employees receive 1 month per year of service (capped at 12 months x 3x local avg salary) when terminated without just cause. Jing Ji Bu Chang Jin (Economic Compensation) is a significant liability, must be accrued regularly and paid in full at termination.
How Ontop Automates Benefit Accrual & Compliance: Ontop automatically calculates Annual Bonus (Nian Zhong Jiang), leave balances (by JHT type), maternity deductions, and Jing Ji Bu Chang Jin (Economic Compensation) reserves. Payslips show accruals and deductions clearly. Audit-ready.
Decision makers need concrete cost inputs. Provide contribution ranges, deduction rates, and sample calculations for budget decisions.
Employer Social Insurance Fund (pension, medical, unemployment, work injury, maternity) And Additional Charges: Employer Social Insurance Fund (pension, medical, unemployment, work injury, maternity) varies by sector and contract. Approximate rates:
Employee Deductions And Tax Bands: Employee deductions include ~10.5% employee (pension 8% + medical 2% + unemployment 0.5%)% Social Insurance Fund (pension, medical, unemployment, work injury, maternity) and progressive State Taxation Administration (STA) tax: 3% up to CNY 36,000 / 10% / 20% / 25% / 30% / 35% / 45% Regional/local taxes may add extra percentages.
Total Employer Cost Example: Scenario: Permanent employee in Beijing at CNY 20,000 gross/month/month gross.
For annual planning, expect the total employer cost to be roughly ~30-40% above gross (varies by city) above the gross salary, plus applicable statutory accruals for benefits.
Clarify payment rails, currency handling, and worker features that influence adoption and retention.
Local CNY ¥ (Chinese Yuan) Transfers And Pay Runs: Payroll in China typically uses CNY ¥ (Chinese Yuan) payments via local bank networks to local accounts. Ontop supports local rails so workers receive funds on payday in a single auditable run. No conversion friction.
Multi-Currency And Dynamic Conversion: When paying from other currencies, Ontop shows rates and fees before confirmation. Finance leaders get transparent previews. All conversions logged for audit.
Ontop Wallet And Instant USD Payouts: Workers receive USD via Ontop wallet backed by U.S. bank for fast access. Instant payouts reduce waiting times. Visible on worker dashboard and app. Useful for remote workers or USD preference.
Visa Debit And Worker Perks: Ontop issues Visa cards (physical or virtual) for immediate fund access. Security controls (instant freeze, limits) and perks (cashback, travel benefits, reduced transfer fees).
Buyers search "China payroll mistakes," "how to avoid penalties." Fear-based content drives conversions.
Social Insurance City Registration Mismatch
Risk Level: HIGH
China's social insurance system is locally administered. An employee must be registered in the city where they physically work. Registering employees in low-contribution cities while they work in high-cost cities (e.g., registering Shanghai employees in a rural county) is a major enforcement priority. MOHRSS imposes retroactive contributions at the correct city rate plus penalties. Ontop registers each employee with the social insurance bureau of their actual work location.
Housing Provident Fund (HPF) Under-Contribution
Risk Level: HIGH
Housing Provident Fund contributions (typically 5-12% each employer/employee, varying by city) must be based on the prior year average monthly salary. Many employers cap contributions at the minimum contribution base to reduce costs. Local HPF centers audit annually and impose make-up contributions plus interest. Ontop applies city-specific HPF rates and contribution base rules.
Ontop supports payroll for both contractors and employees in China. The platform provides contractor (Lao Wu Pai Qian / Zi You Zhi Ye Ren) contract templates and full EOR services for employees so you can choose the structure that fits compliance and operational needs.
Ontop applies local employer contribution rules (typically around ~10.5% employee (pension 8% + medical 2% + unemployment 0.5%)) and sector-specific rates when calculating payroll liabilities. The system presents a clear breakdown of employer charges during payroll preview so you know the total cost before approval.
Yes, mandatory bonus structures like Annual Bonus (Nian Zhong Jiang) are common. The standard structure is 1-3 months common; 13th month widespread, usually paid in January (pre-Spring Festival) or prorated across the year. Ontop supports both approaches and reflects proration on employees' payslips and in cost projections.
Employees typically see Social Insurance Fund (pension, medical, unemployment, work injury, maternity) deductions around ~10.5% employee (pension 8% + medical 2% + unemployment 0.5%) and progressive State Taxation Administration (STA) income tax withholding between 3% up to CNY 36,000 / 10% / 20% / 25% / 30% / 35% / 45% depending on income bracket and region. Ontop calculates and withholds the correct amounts based on salary, location, and personal circumstances.
Yes, Ontop provides cost previews that include employer contributions, taxes, statutory charges (like Jing Ji Bu Chang Jin (Economic Compensation) accruals), and regional variation. Use these previews to budget hires accurately and compare contractor versus employee scenarios.
No. Ontop can operate as your Employer of Record (EOR), handling all legal employer responsibilities and registrations. You avoid the complexity and cost of setting up a local company. Alternatively, if you have an entity, Ontop can serve as your payroll processor.
Common risks include misclassifying employees as contractors, missing State Taxation Administration (STA) payment deadlines, and failing to adhere to Ji Ti He Tong (Collective Contract) rules. Ontop's automation and expert support mitigate these risks.
