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Partial: some charges not included, see notes
Mandatory employer contributions in China (Shanghai)
| Contribution | Employer rate | Monthly cap |
|---|---|---|
| Pension | 16.0% | 37,302 CNY/month |
| Medical incl. maternity | 9.0% | 37,302 CNY/month |
| Unemployment | 0.5% | 37,302 CNY/month |
| Work-related injury (minimum) | 0.2% | 37,302 CNY/month |
Who these rates cover: Shanghai, local employees.
Employer cost at three salary levels
| Annual salary | Employer contributions | On-cost % | Total cost | Total in USD |
|---|---|---|---|---|
| 99,700 CNY | 25,623 CNY | 25.7% | 125,323 CNY | $17,431 |
| 199,000 CNY | 51,143 CNY | 25.7% | 250,143 CNY | $34,791 |
| 399,000 CNY | 102,543 CNY | 25.7% | 501,543 CNY | $69,757 |
The examples use 1×, 2× and 4× China (Shanghai)’s 2025 GDP per person in local currency (99,665 CNY, World Bank) as reference salaries. GDP per person is not a wage; it is a neutral, cited yardstick for low, middle and senior pay.
Worked example
For a salary of 199,000 CNY a year, the employer adds about 51,143 CNY (25.7%) in mandatory contributions, for a total of 250,143 CNY, about $34,791 at the 2025 average exchange rate. The rate is roughly flat across salaries (25.7% to 25.7%), so on-costs scale with pay.
What is not included
- Shanghai rates for local Chinese employees; Beijing totals 26.5%–28.2% and Guangzhou 23.85%–25.05% with different ceilings. The mandatory housing fund (typically 5%–7% employer) is not included.
How to budget a hire in China (Shanghai)
- Start from the gross salary you plan to offer in CNY.
- Add the mandatory contributions above. The calculator applies caps and salary bands automatically.
- Add benefits customary in China (Shanghai) (health cover, bonuses, extra month salaries) as a percentage in the calculator.
- If you have no local entity, add an employer-of-record fee. Deel and Remote both list EOR from $599 per employee per month on their public pricing pages (checked 23 October 2026).
- Convert to your budgeting currency with a current rate. The USD figures here use the World Bank 2025 average.
Compare China (Shanghai) with other countries in the any-country comparison, or see whether an EOR, contractor or own entity is cheaper.
Source: PwC Worldwide Tax Summaries: China (Shanghai), other taxes, last reviewed 22 July 2026 (checked 23 October 2026). Exchange rate and GDP per capita: World Bank (2025, indicators PA.NUS.FCRF and NY.GDP.PCAP.CN). HireCost transcribes the rates; it does not invent or estimate missing ones.
Frequently asked questions
How much does it cost to employ someone in China (Shanghai)?
On a salary of 199,000 CNY, mandatory employer contributions add about 25.7%, for a total of roughly 250,143 CNY a year before benefits (PwC, reviewed 22 July 2026).
What are employer social security contributions in China (Shanghai)?
Pension 16.0%, Medical incl. maternity 9.0%, Unemployment 0.5%, Work-related injury (minimum) 0.2%.
Is the China (Shanghai) data verified?
Partly. The rates shown are cited, but some employer charges are not included; they are listed under "What is not included".