China Regional Policy¶
This page contains human resources policies and regulatory requirements applicable to employees in China.
Social Insurance Policy (Five Insurances and One Fund)¶
Contribution Base (2025)¶
Base Range: Based on employee's average monthly salary from previous year - Upper Limit: CNY 20,361/month (varies by province, Hunan example) - Lower Limit: CNY 4,072/month - Shanghai: Upper CNY 37,302/month, Lower CNY 7,460/month (effective July 1, 2025)
Contribution Rates¶
| Insurance Type | Employer Rate | Employee Rate |
|---|---|---|
| Pension Insurance | 16% | 8% |
| Medical Insurance (incl. maternity) | 9% | 2% |
| Unemployment Insurance | 0.5% | 0.5% |
| Work Injury Insurance | 0.2%-1.9% (by industry) | 0% |
| Housing Fund | 7% | 7% |
Flexible Employment¶
Individuals can choose contribution levels between minimum and maximum bases.
Individual Income Tax Policy¶
Tax Threshold¶
Monthly income CNY 5,000 (Annual income CNY 60,000)
Comprehensive Income Tax Rate Table (2025)¶
| Annual Taxable Income | Tax Rate | Quick Deduction |
|---|---|---|
| Up to CNY 36,000 | 3% | 0 |
| CNY 36,000-144,000 | 10% | 2,520 |
| CNY 144,000-300,000 | 20% | 16,920 |
| CNY 300,000-420,000 | 25% | 31,920 |
| CNY 420,000-660,000 | 30% | 52,920 |
| CNY 660,000-960,000 | 35% | 85,920 |
| Over CNY 960,000 | 45% | 181,920 |
Taxable Income Calculation¶
Taxable Income = Gross Income - CNY 5,000 (threshold) - Special Deductions (five insurances and one fund) - Special Additional Deductions - Other Legal Deductions
Special Additional Deductions¶
- Children's education
- Continuing education
- Serious illness medical treatment
- Housing loan interest
- Housing rent
- Elderly care
- Care for children under 3 years old
Labor Regulations¶
Employment Contracts¶
- Written contract must be signed within one month of employment
- Probation period maximum 6 months
- After two fixed-term contracts, indefinite-term contract required
Working Hours System¶
- Standard Hours: 8 hours/day, 40 hours/week
- Overtime Limit: No more than 36 hours/month
- Rest Days: At least 1 day off per week
Overtime Pay Standards¶
- Workday overtime: 150% of wage
- Rest day overtime: 200% of wage
- Public holiday overtime: 300% of wage
Annual Leave System¶
- 1-10 years of service: 5 days
- 10-20 years of service: 10 days
- Over 20 years of service: 15 days
Last Updated: 2026-02-06