Calculation sample for local employee payroll costs
Companies registered in Shanghai (including Foreign-Invested Enterprises, FIEs) are legally required to contribute the following social insurance and housing fund, collectively known as the "Five Insurances and One Housing Fund" (2025 latest standards):-
1. Pension fund
2. Medical insurance (including Maternity insurance)
3. Unemployment insurance
4. Work injury insurance
5. Housing fund
| Insurance types
| Total %
| Company
| Employee
|
| Pension fund
| 24% |
16% |
8% |
| Medical insurance
| 11% |
9% |
2% |
| Unemployment insurance
| 1% |
0.5% |
0.5% |
| Injury insurance
| 0.16-1.52% |
0.16-1.52% |
0% |
| Housing fund
| 14% |
7% |
7% |
Monthly payroll calculation example:
For example, if you hire a person, with the basic salary of RMB 10,000 per month, that means, the employee can get 8,135 as net income, while your total cost is RMB 13,282.00 as a whole.
| Persons
| Employee (local) |
| Net income of the employee
| 8.135 |
| Monthly Before-tax Salary (RMB)
| 10,000 |
| Pension (employee part)
| -800.00 |
| Housing (employee part)
| -700.00 |
| Medical (employee part)
| -200.00 |
| Unemployment (employee part)
| -50.00 |
| DSD
| -5,000.00 |
| Taxable income
| 3,250.00 |
| Percetage
| 10% |
| DCR
| 210 |
| IIT Payable
| 115.00 |
| Insurance(BP)
| 10,000.00 |
| Housing(BP)
| 10,000.00 |
| Pension (company part)
| 1,600.00 |
| Pension (employee part)
| 800.00 |
| Medical (company part)
| 850.00 |
| Medical (local part)
| 50.00 |
| Medical (employee part)
| 200.00 |
| Unemployment (company part)
| 50.00 |
| Unemployment (employee part)
| 50.00 |
| Injury
| 32.00 |
| Social Insurance (company part)
| 2,582.00 |
| Social Insurance (employee part)
| 1050.00 |
| Sub-total Social Insurance
| 3,632.00 |
| Housing (company part)
| 700.00 |
| Housing (employee part)
| 700.00 |
| Sub-total Housing Fund
| 1400.00 |
| Total Monthly Cost
| 13,282.00 |