Payroll Guides

Payroll Guide: China

Published on 05 Apr 2023

Entrust your China payroll with Asia Pacific's Award-Winning Payroll and HRMS provider

OS HRS takes care of your multi-country payroll with local regulatory expertise. From China, across Asia Pacific and beyond, we are the payroll partner of global leaders. Not sure where to start when it comes to multi-country payroll? Here’s our quick payroll guide for your China business operations.

Overview of payroll in China



Payroll cycle 


Employer taxes  

3% - 45% 

Minimum wage  

1,700 CNY to 2,690 CNY per month

Working hours  

40 hours per week, maximum 44 hours per week

What are the steps to set up payroll in China?

Payroll in China involves a number of compliance requirements, including the calculation and withholding of taxes, social security contributions, and other deductions. Here are the steps to set up payroll in China:

  1. Obtain a Business License: The first step in setting up payroll in China is to obtain a business license from the State Administration for Industry and Commerce (SAIC). This license is required for all businesses operating in China.

  2. Register for a Taxpayer Identification Number (TIN): All businesses in China need a Taxpayer Identification Number (TIN), which is issued by the State Administration of Taxation (SAT). As an employer, you need to register for a TIN as well.

  3. Decide on Payroll Frequency: The next step is to decide on the frequency of payroll processing. In China, payroll is typically processed on a monthly basis.

  4. Collect Employee Information: To set up payroll, you need to collect employee information, such as name, address, national ID number, bank account details, and salary structure.

  5. Calculate Salary and Deductions: Once you have collected employee information, you need to calculate salaries and deductions based on the salary structure. Deductions can include income tax, social insurance, and housing fund contributions.

  6. Register for Social Insurance and Housing Fund: Social insurance and housing fund are mandatory in China, and as an employer, you are required to contribute a percentage of your employees' salaries to these funds. You need to register for these funds and make regular contributions on behalf of your employees.

  7. Generate Payslips and Bank Transfer: After calculating salaries and deductions, you need to generate payslips for employees and transfer their salaries to their bank accounts.

  8. File Monthly Returns: Finally, you need to file monthly returns with the SAT and local social insurance and housing fund authorities. These returns report the tax and other deductions made from employee salaries.

It is important to note that setting up payroll in China can be complex, and it is recommended to seek professional advice or engage a payroll outsourcing company like OS HRS to ensure compliance with local regulations.

Contact Us

What do you need to know about China Payroll?

Employer Contributions China

What do you as an employer need to make in employer contributions?

Employer contributions vary by state in China, we share the contributions required in Beijing below:


Employer Pension

Note: maximum monthly salary base of 33,891 CNY


Employer Medical Insurance

Note: maximum monthly salary base of 33,891 CNY


Employer Medical Insurance (serious disease)

Note: maximum monthly salary base of 33,891 CNY


Employer Unemployment Insurance

Note: maximum monthly salary base of 33,891 CNY


Employer Work-related Injury Insurance

Note: dependent upon type of work being carried out, maximum monthly salary base of 33,891 CNY


Employer Maternity Insurance

Note: maximum monthly salary base of 33,891 CNY

5.00% to 12.00%

Housing Fund

Note: In some cities an excess of 12% is allowed

31.50% – 38.50%

Total Employer Contributions

Employee Contributions China

What do you as an employee need to make in employee contributions?

Employee contributions vary by state in China, we share the contributions required in Beijing below:




Medical Insurance


Unemployment Insurance

5.00% to 12.00%

Housing Fund (In some cities excess of 12% is allowed)

15.50% to 22.50%

Total Employee Contributions

Employee Income Taxes in China

What are the income tax rates in China?

Annual Taxable Income

Tax Rate

Quick Deduction

Up to 36,000 CNY



36,001 – 144,000 CNY


2,520 CNY

144,001 – 300,000 CNY


16,920 CNY

300,001 – 420,000 CNY


31,920 CNY

420,001 – 660,000 CNY


52,920 CNY

660,001 – 960,000 CNY


85,920 CNY

960,001 CNY and above


181,920 CNY

Why trust OS HRS with your multi-country payroll?

Integrate your multi-country payroll processes

Automate your multi-country payroll across Asia Pacific, and beyond

Dedicated multi-country payroll compliance

Reach out to OS HRS for a discovery call today!

Contact Us

Last updated March 2024

Similar articles

Payroll Guide: Indonesia

April 14th, 2023

Payroll Guide: Australia

April 3rd, 2023

Payroll Guide: Singapore

March 23rd, 2023