Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
CNY ¥ (Chinese Yuan)
Employer contributions
~30-40% total employer (pension 16% + medical 9% + unemployment 0.5% + work injury ~0.4% + maternity 0.8%) - varies by city
Minimum wage
CNY 2,690/month (Beijing 2026; varies by province)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Beijing
Timezone
CST (GMT+8)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~CNY 27,000 total
/month
For a gross salary of
CNY 20,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~30-40% total employer (pension 16% + medical 9% + unemployment 0.5% + work injury ~0.4% + maternity 0.8%) - varies by city
Mandatory extras
Annual Bonus (Nian Zhong Jiang)
Monthly admin
Monthly payroll - social insurance + housing fund by 15th - IIT withholding - annual reconciliation March
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~CNY 27,000 total
Example gross salary
CNY 20,000 gross/month
~CNY 11,050 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~CNY 7,000 employer SS
Employer contributions on that salary
Employer contributions
~30-40% total employer (pension 16% + medical 9% + unemployment 0.5% + work injury ~0.4% + maternity 0.8%) - varies by city
Employee contributions
~10.5% employee (pension 8% + medical 2% + unemployment 0.5%)
Total cost above gross
~30-40% above gross (varies by city)
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~CNY 10,000
Per month
Beijing
CNY 15,000 - 50,000
~50%
Shanghai
CNY 15,000 - 50,000
~50%
Monthly gross. National average salary per year:
~CNY 120,000
Minimum wage
CNY 2,690/month (Beijing 2026; varies by province)
Paid:
Monthly
Extra pay
Annual Bonus (Nian Zhong Jiang)
1-3 months common; 13th month widespread
January (pre-Spring Festival)
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
3% up to CNY 36,000 / 10% / 20% / 25% / 30% / 35% / 45%
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by 15th
Social security payments
March 31 (annual individual income tax reconciliation)
Income tax
By March 31
Employee tax certificate
Nian Du Suo De Ming Xi
March 31
Annual return
Ge Ren Suo De Shui Hui Suan
Late payment penalties
Late social insurance: 0.05%/day; late IIT: 0.05%/day; Housing Fund late: 0.05%/day
Who collects what
State Taxation Administration (STA)
Individual Income Tax (IIT)
Ministry of Human Resources and Social Security (MOHRSS)
Social insurance and labor
Local Housing Provident Fund Management Center
Housing Fund contributions
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Nian Jia (Annual Leave)
5 days (1-10 yrs) / 10 days (10-20 yrs) / 15 days (20+ yrs)
Public holidays
~11 public holidays (7 Golden Week periods)
Sick leave
Bing Jia (Sick Leave)
Employer pays at minimum wage rate for sick leave periods
Maternity leave
18 weeks (98 days)
Full pay from employer; maternity insurance reimburses (where registered)
The contracts you can use, and what ending an employment relationship costs.
Permanent
Wu Gu Ding Qi Lao Dong He Tong (Permanent)
Fixed term
Gu Ding Qi Lao Dong He Tong (Fixed Term)
Independent contractor
Lao Wu Pai Qian / Zi You Zhi Ye Ren
Collective agreements
Ji Ti He Tong (Collective Contract)
Ending employment
Jing Ji Bu Chang Jin (Economic Compensation)
How it is calculated
1 month per year of service (capped at 12 months x 3x local avg salary)
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
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.
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.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.