China EOR: what an employer of record costs in China
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For a Shanghai hire paid CNY 267,449 a year, the USD 40,000 equivalent, employer social insurance and housing fund add 32.7% to salary at Shanghai's 2026 rates (medical and work injury from official notices, pension and unemployment from secondary summaries), and pension at 16% is the heaviest single line. Employer of record providers charge from $199 monthly (Payoneer Workforce Management, formerly Skuad) up to $699 (Oyster) on top, per pricing pages checked October 16, 2026. Chinese law gives you no at-will exit: economic compensation is one month's wages for every full year worked (Labor Contract Law art. 47), and a no-fault dismissal also needs 30 days' written notice or an extra month's pay (art. 40).
An employer of record in China is a Chinese company that signs the labor contract with your hire, enrolls them in the city's social insurance and housing fund, and runs payroll, while your team directs the work.
- Employer cost on a sample salary
- Shanghai 32.7% (CNY 87,456 =…on top of gross pay
- Currency
- CNY
On this page
China payroll is set city by city
There is no single national rate sheet. Each city sets its own contribution base, and the employer pays into two systems: social insurance (pension, medical with maternity, unemployment, work injury) and the housing provident fund, which the employee matches.
- Shanghai 2026: pension 16%, medical including maternity 9% (8.5% basic plus 0.5% local supplementary, March 1, 2026 to February 28, 2027), unemployment 0.5%, work injury 0.2% to 1.9% across eight industry classes (notice Hu Ren She Gui [2026] No. 2), housing fund 5%, 6% or 7%.
- Beijing: about 26.5% social insurance plus a 5% to 12% housing fund. Beijing's 9.8% medical figure is the July 2024 to June 2025 rate and was not reconfirmed for 2026.
- Ceilings: Beijing's monthly base runs from CNY 7,270 to CNY 36,348 from July 2026 (Beijing Human Resources and Social Security Bureau, August 21, 2026). Shanghai's ceiling is reported at CNY 37,731 from July 1, 2026 (secondary sources). Pay above the ceiling attracts no further contributions.
- Bonuses: no statutory 13th month, though many contracts include one.
The Shanghai medical and work-injury rates come from official notices. The 16% pension and 0.5% unemployment rates rest on secondary summaries (Eastmoney, Kaizen CPA), so ask your EOR for its own rate sheet.
Employment costs and rules in China
| Item | China |
|---|---|
| Employer social contributions | Shanghai about 25.7% social insurance (lowest work-injury class) + 5% to 7% housing fund = about 30.7% to 32.7%; Beijing about 26.5% + 5% to 12% housing fund = about 31.5% to 38.5% |
| What the employer pays | Shanghai: pension 16%; medical incl. maternity 9% (8.5% basic + 0.5% local supplementary, Mar 1, 2026 to Feb 28, 2027); unemployment 0.5%; work injury 0.2% to 1.9% by 8 industry classes (Jan 1, 2026 to Dec 31, 2030, with floating adjustments); housing fund 5%, 6% or 7% (employee matches). Beijing: pension 16%; medical incl. maternity 9.8% (Jul 2024 to Jun 2025 figure); unemployment 0.5%; work injury 0.2% to 1.9%; housing fund 5% to 12% |
| Caps and ceilings | Shanghai from Jul 1, 2026: social insurance base ceiling CNY 37,731, floor CNY 7,546/mo; housing fund base ceiling CNY 37,731, floor CNY 2,740. Beijing from Jul 2026: ceiling CNY 36,348, floor CNY 7,270/mo for pension, unemployment, work injury and medical (2025 ceiling CNY 35,811) |
| Employee contributions | About 10.5% (pension 8%, medical 2%, unemployment 0.5%; Beijing medical 2% + CNY 3) plus matching housing fund 5% to 12% |
| Minimum wage | Shanghai CNY 2,740/mo and CNY 25/hour from Jul 1, 2025 (Hu Ren She Gui [2025] No. 10; excludes employee social insurance and housing fund), still current per the MOHRSS table reported Oct 12, 2026; Beijing CNY 2,540/mo and CNY 27.7/hour (same report, effective date not shown) |
| Mandatory bonuses | None statutory (13th month common by contract) |
| Probation | 1 month (contract 3 months to under 1 year), 2 months (1 to under 3 years), 6 months (3+ years fixed term or open-ended) (Labor Contract Law art. 19) |
| Notice period | 30 days' written notice or 1 extra month's wages in lieu for no-fault dismissals (Labor Contract Law art. 40) |
| Severance | 1 month's wages per full year of service (Labor Contract Law art. 47); if monthly pay exceeds 3x the local average monthly wage, the base is capped at 3x and service at 12 years |
| Sample salary used | CNY 267,449 a year (CNY 22,287/mo, under both ceilings) = USD 40,000 at ECB cross rate (CNY 7.5240 per EUR, Oct 16, 2026) |
| Employer cost on that salary | Shanghai 32.7% (CNY 87,456 = 16 + 9 + 0.5 + 0.2 + 7% housing fund); Beijing 31.5% (CNY 84,246) with 5% housing fund or 38.5% (CNY 102,968) with 12% |
Checked October 16, 2026. Source type: official (Shanghai medical insurance notice Hu Yi Bao Gui [2026] No. 2; Shanghai work-injury and minimum wage notices; Beijing base notice Aug 21, 2026; Labor Contract Law text on the Jiangsu tax bureau site); secondary (Eastmoney, Kaizen CPA and a government account post on The Paper for Shanghai 2026 bases and pension/unemployment rates; Forvis Mazars for Beijing rates; CNA for current minimum wages). Sources are listed at the end of this page.
What an EOR charges to employ someone in China
| Provider | EOR fee per employee per month | Deposit | Entity model (provider claim) |
|---|---|---|---|
| Payoneer Workforce Management | from $199 | None listed | Claims owned entities across APAC, MEA, Europe and the Americas |
| Pebl | $399 | Not listed | About 90% of employees on Pebl-owned entities |
| Playroll | from $399 | One month's salary per employee, refundable | No clear owned-entity claim |
| Rivermate | $319 to $639 | Not stated | Claims 38 owned entities |
| Multiplier | $459 (annual) or $499 (monthly) | Sized from costs, fees and notice period (method published, no fixed amount) | Claims owned entities in 160+ countries |
| Rippling EOR | Quote only (third-party reference: $499) | Not listed | Claims Rippling entities; no partner mention |
| Deel | $599 | Not stated by Deel | Claims owned entities in 130+ countries |
| Remote | from $599 | Waived for startups; otherwise not stated | Claims 100% owned entities in 90+ countries |
| Atlas | from $599 | Not published | Claims owned entities in 160+ countries |
| Papaya Global | from $650 | Refundable deposit, amount not stated | Uses in-country partners |
| Oyster | $699 | At least one month of total service cost, refundable (per its terms) | Owned entities and partners |
| Globalization Partners (G-P) | Quote only | Not stated | Information page claims 100+ wholly owned entities |
Source: each provider’s pricing page, checked October 16, 2026. Fees are the provider’s charge on top of salary and the employer contributions above. Some providers adjust prices by country.
One Shanghai employee, line by line
| Line | Per month | Per year |
|---|---|---|
| Gross salary | CNY 22,287.42 | CNY 267,449.00 |
| Pension, 16% | CNY 3,565.99 | CNY 42,791.84 |
| Medical incl. maternity, 9% | CNY 2,005.87 | CNY 24,070.41 |
| Unemployment, 0.5% | CNY 111.44 | CNY 1,337.25 |
| Work injury, 0.2% (class 1) | CNY 44.57 | CNY 534.90 |
| Housing fund, 7% | CNY 1,560.12 | CNY 18,721.43 |
| Employer contributions (32.7%) | CNY 7,287.99 | CNY 87,455.83 |
| EOR fee at $599 | CNY 4,005.04 | CNY 48,060.53 |
| All-in cost | CNY 33,580.45 | CNY 402,965.36 |
Medical and work-injury lines: Shanghai's 2026 notices. Pension and unemployment: secondary summaries. Fee: $599 (Deel, Remote) at CNY 6.6862 to the dollar, from ECB cross rates of October 16. Checked Oct 2026.
Where the yuan figure comes from: the ECB quoted CNY 7.5240 and USD 1.1253 per euro on October 16, 2026, so a dollar bought CNY 6.6862 and USD 40,000 became CNY 267,449. Adding the rates gives 16 + 9 + 0.5 + 0.2 + 7 = 32.7 points, or CNY 87,455.83 a year. Monthly pay of CNY 22,287 is below both cities' ceilings, so nothing is capped. Move the same person to Beijing and the share is 31.5% (CNY 84,246) at a 5% housing fund, or 38.5% (CNY 102,968) at 12%.
Setting up your own company in China instead
A foreign-owned company in China must open social insurance and housing fund accounts in every city where it employs people, then track each city's rates and bases as they change (Beijing and Shanghai reset theirs in July 2026). That is why the EOR fee buys more here than in a one-rate country. Five Shanghai staff through an EOR at $599 cost $35,940 a year in fees. Our EOR versus entity guide helps you compare that with setting up locally.
Paying a Chinese contractor
Paying a Chinese individual as a service provider avoids the 32.7%, but if authorities or the worker treat the relationship as employment, you face the unpaid social insurance and housing fund along with the Labor Contract Law's notice and severance rules. For freelancers who really are independent, see contractor management software; a contractor of record takes on the classification question for a fee.
Which EOR to use for a China hire
| Provider | Our score | EOR fee per month | Entity model |
|---|---|---|---|
| Multiplier | $459 (annual) or $499 (monthly) | Own legal entities in every country (claim) | |
| Oyster | $699 | Owned entities and partners | |
| Remote | from $599 ($699 in a March 2026 help article) | 100% owned entities in 90+ countries (claim) | |
| Deel | $599 | Wholly owned entities in 130+ of 150+ countries (claim) |
Score date October 17, 2026. Entity claims are each provider's own wording, read October 16, 2026; none names its Chinese entity on the pricing page.
In China, ask whether the provider employs through its own Chinese company or a local partner, and whether it is registered in your hire's city, since rates follow the city. Partner setups can complicate disputes: in July 2025 (more than a year ago) an Oyster reviewer on Trustpilot described final pay going unpaid while Oyster and its local partner blamed each other. See the full EOR ranking, how the scores are set, and the Deel, Remote and Oyster reviews; the EOR cost index places China among other countries.
Frequently asked questions
How much is a China EOR per employee per month?
What is the housing provident fund in China?
How much severance does China require?
How long can probation last in China?
What is the minimum wage in Shanghai and Beijing?
Sources (21)
- Shanghai Municipal Government: Shanghai medical insurance rate notice (Hu Yi Bao Gui [2026] No. 2) (checked Oct 16, 2026)
- State Taxation Administration, Jiangsu: Labor Contract Law text (checked Oct 16, 2026)
- Eastmoney: Shanghai 2026 social insurance bases (secondary) (checked Oct 16, 2026)
- CNA: Mainland minimum wage table report (checked Oct 16, 2026)
- European Central Bank: Euro foreign exchange reference rates (rates for Oct 16, 2026)
- Pebl: Pebl EOR pricing (checked Oct 16, 2026)
- Playroll: Playroll pricing (checked Oct 16, 2026)
- Multiplier: Multiplier pricing (checked Oct 16, 2026)
- Deel: Deel pricing (checked Oct 16, 2026)
- Remote: Remote pricing (checked Oct 16, 2026)
- Oyster: Oyster pricing (checked Oct 16, 2026)
- Payoneer Workforce Management (formerly Skuad): Skuad pricing (checked Oct 16, 2026)
- Trustpilot: Oyster reviews (review of Jul 28, 2025, checked Oct 16, 2026)
- rsj.beijing.gov.cn/xxgk/2024zcwj/202608/t20260821_4831461.html (checked October 16, 2026)
- rsj.beijing.gov.cn/xxgk/2024zcjd/202608/t20260821_4831476.html (checked October 16, 2026)
- rsj.sh.gov.cn/tshbx_17729/20260121/t0035_1438097.html (checked October 16, 2026)
- rsj.sh.gov.cn/cmsres/2c/2c52da60c7ed423c949a1a8524195c92/4221087aea... (checked October 16, 2026)
- news.bjd.com.cn/2026/08/21/11925637.shtml (checked October 16, 2026)
- m.thepaper.cn/newsDetail_forward_33839702 (checked October 16, 2026)
- kaizencpa.com/download/china/2026 (checked October 16, 2026)
- forvismazars.com/cn/zh/4/1/6/2024-8-2024 (checked October 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.