The total human resource cost for Shanghai-based enterprises employing Chinese nationals significantly exceeds the base salary.
In addition to wages, employers are mandated to contribute an additional 35%-40% of the employee's monthly salary as statutory payments, calculated based on the employee's average monthly earnings from the previous year (subject to the contribution base caps set by Shanghai). These compulsory costs include pension insurance (16% employer contribution), merged medical and maternity insurance (10%), unemployment insurance (0.5%), work-related injury insurance (0.16%-1.52%, varying by industry risk), and housing provident fund (5%-7% employer contribution).
Furthermore, companies typically bear recruitment, training, and other administrative expenses, and often provide benefits such as annual bonuses, meal allowances, and transportation subsidies. Overall, the total cost to the company generally amounts to 1.4 to 1.6 times the employee's average monthly cash compensation, with the exact ratio depending on the actual salary level and the company's specific benefits policy.