Local employee recruitment, payroll & insurance guideline
The work you need to do after company setup to recruit local employee:
1. Labor contract preparation;
2. Declaration of engagement;
3. Social insurance registration/housing fund registration;
4. Employees’ personal insurance account transfer in & out;
5. Employees’ payroll calcluation and payslip distribution
6. Declaration and Contribution of Social Security & Housing Fund monthly;
7. Individual income tax monthly filing;
8. Annual average salary report
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 (incluing 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% |