What China employee benefits must you provide in 2026?
China's employer pension contribution is 16% of salary, nearly six times the UK floor. Add medical, unemployment, work injury, and maternity insurance, and the mandatory social insurance burden lands at 22 to 28 percent of payroll before the housing provident fund.
· China guide
Illustration · China
China's statutory leave starts at 5 days per year for employees with 1 to 10 years of service.
Sick pay is paid at a minimum of 60% of wages for employees with under two years of service.
Pension law requires 16% from the employer and 8% from the employee. These are components of a wider social insurance system that also covers medical, unemployment, work injury, and maternity.
Competitive packages in China add commercial health insurance, housing provident fund top-ups, annual bonuses, and supplemental pension plans.
What benefits must you provide China employees by law?
The law sets mandatory contribution floors. You must enrol every employee in China's social insurance system from day one. That covers pension, medical, unemployment, work injury, and maternity insurance.
Paid annual leave is 5 days for employees with 1 to 10 years of service. Sick leave pay is at least 60% of wages under two years of service.
| Statutory benefit | Minimum (2026) | Source |
|---|---|---|
| Annual leave (1 to under 10 years service) | 5 days | Regulations on Paid Annual Leave (State Council Decree No. 514, 2008) |
| Annual leave (10 to under 20 years service) | 10 days | State Council Decree No. 514, 2008 |
| Annual leave (20 or more years service) | 15 days | State Council Decree No. 514, 2008 |
| Public holidays | 7 statutory occasions per year | Measures for National Holidays and Memorial Day Leave (amended 2025) |
| Sick leave pay (under 2 years service) | At least 60% of wages | Ministry of Labour [1994] No. 479 |
| Maternity leave (national minimum) | 98 days (15 pre-birth, 83 post-birth) | State Council Decree No. 619 (2012) |
| Paternity leave | Varies by province, typically 7 to 30 days; verify for each city of employment | Provincial population and family planning regulations (no unified national law) |
| Basic pension insurance | 16% employer + 8% employee on contributory base | PRC Social Insurance Law (2018 amendment) |
| Medical, unemployment, work injury, maternity insurance | Rates vary by city; employer totals typically 22 to 28% of contributory base excluding housing fund | PRC Social Insurance Law (2018 amendment); local government regulations |
| Housing provident fund | 5 to 12% of salary from employer and employee each (city-determined) | Housing Provident Fund Management Regulations (2019 revision) |
| Standard working week | 40 hours | PRC Labour Law, Article 36 |
What does a competitive China benefits package look like?
For professional and tech hiring in China in 2026, the competitive benchmark adds: commercial health insurance (bupa-style inpatient and outpatient cover), supplemental pension, an annual or Spring Festival bonus, housing provident fund contributions above the statutory floor, and a training budget.
A full enhanced package typically costs 30,000 to 80,000 CNY per employee per year on top of base salary and mandatory social insurance.
| Benefit | Typical mid-market cost | What it gets you |
|---|---|---|
| Commercial health insurance (inpatient and outpatient) | 3,000 to 12,000 CNY per year per employee | Faster access, specialist cover, dental option, access to international hospitals |
| Annual or Spring Festival bonus | One to three months salary | Key retention lever; almost universal in Chinese workplaces; absence damages talent acquisition |
| Enhanced housing provident fund (above statutory floor) | Employer adds 2 to 5% above the statutory minimum | Higher contributions increase employee purchasing power for housing; signals long-term commitment |
| Supplemental enterprise annuity (occupational pension) | 3 to 8% of salary from employer | Voluntary top-up to the state basic pension; tax-advantaged within approved limits |
| Transport and meal subsidies | 500 to 2,000 CNY per month per employee | Common in Chinese cities; partially tax-exempt within approved limits |
| Training and development budget | 3,000 to 15,000 CNY per year per employee | Language courses, professional certifications, leadership development |
| Flexible working and remote allowances | 1,000 to 5,000 CNY per year per employee | Growing expectation post-2022; internet and equipment support |
Model your loaded benefit cost on the Employer Cost Calculator to see the full picture for a specific salary and city.
What pension contribution should you offer in China?
16% is the mandatory employer contribution to the basic pension insurance scheme. That is the floor. The employee adds 8% from their own wages.
Competitive employers go further with an enterprise annuity, China's voluntary occupational pension layer.
Three contribution structures used by employers in China:
- Statutory minimum (16% employer + 8% employee). Covers the legal obligation. Meets the floor but offers no differentiation for senior hiring.
- Statutory plus enterprise annuity (3 to 5% employer top-up). Common among foreign-invested enterprises and larger Chinese tech companies. Tax-advantaged up to approved limits under the Enterprise Annuity Measures (2023).
- Full enterprise annuity scheme (up to 8% employer match). Used by multinationals to attract senior talent. Requires a formal enterprise annuity plan, approved trustee, and fund management agreement.
How the basic pension works
China's basic pension has two accounts: a social pooling account (funded by the employer's 16% contribution) and a personal account (funded by the employee's 8%). The social pooling account redistributes across the workforce. The personal account accumulates to the individual. On retirement, the employee draws from both. The system is managed locally by the relevant social insurance bureau.
Enterprise annuity: the voluntary layer
Enterprise annuity (qiye nianjin) is China's equivalent of a defined-contribution occupational pension. Employers may contribute up to 8% of the employee's wage, with combined employer and employee contributions capped at 12% under current rules. Contributions are tax-deductible within limits. For senior hires, an enterprise annuity scheme signals serious long-term commitment and is a meaningful differentiator against local competitors offering only the statutory minimum.
Annual bonuses and Spring Festival pay: the 2024 to 2026 trend
China has no statutory requirement to pay a 13th-month salary. But in practice, annual bonuses are near-universal. Missing them causes real damage to retention.
The Spring Festival bonus (widely called the 13th month) is the dominant form. Most competitive employers also pay a performance bonus on top.
What the market looks like in 2026:
- Spring Festival bonus. Typically one month's salary, paid before the Chinese New Year holiday. Expected by almost all employees in China. Absence is interpreted as a sign of financial difficulty or poor employer reputation.
- Performance-linked annual bonus. 10 to 30% of annual salary for professional and technical roles. Paid after the annual review, usually in Q1. Common in tech, finance, and professional services.
- Project or team bonuses. Growing in agile and engineering teams. Tied to delivery milestones. Paid quarterly or on completion. Helps bridge the gap between annual cycles.
- Retention bonuses for key hires. One to two month equivalents, vesting over 12 to 24 months. Used to offset the attraction of competing offers during the high-mobility Spring Festival hiring season.
The 2024 to 2026 period has seen bonus structures come under more scrutiny. Employees are increasingly aware of bonus norms in their sector and compare offers explicitly. A competitive total package in China must show the bonus expectation clearly, not bury it in a vague performance discretion clause.
For foreign companies entering China, the absence of a Spring Festival or annual bonus is a persistent talent gap. The cost of adding one month's salary to the package is modest against the attrition risk of leaving it out.
How does Teamed handle China benefits for you?
Teamed becomes your legal employer of record in China for from $599 per employee per month, with zero FX mark-up in any currency.
Social insurance registration, monthly contributions, and the full China employment law stack run on one platform.
Real HR and legal experts register for social insurance in the correct city, administer five-insurance-one-fund contributions, and manage the housing provident fund. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.
China is manageable when it's small. It gets harder as headcount and cities multiply. Teamed lets you graduate from one hire to a full in-country team without rebuilding your compliance stack. China is straightforward on one platform, until it isn't. That is exactly when having a dedicated team matters most.
What is included in Teamed's standard EOR fee for China:
- Social insurance registration in the city of employment
- Monthly five-insurance-one-fund remittance
- Annual leave tracking
- Maternity leave administration (coordinating state insurance claims)
- Labour contract drafting compliant with the Labour Contract Law
- Payroll via a locally licensed entity
What clients pass through at cost on the invoice:
- Employer social insurance and housing provident fund contributions (city-specific rates, itemised)
- Commercial health insurance premiums
- Enterprise annuity contributions
- Annual and Spring Festival bonuses
- Transport and meal subsidies
- Any discretionary benefit agreed with the employee
Key sources: Labour Contract Law (Supreme People's Court English version), PwC China social security summary, and China Briefing employer guide.
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Tell us who and where
Share the employee's city of employment. Social insurance rates and housing provident fund levels are city-specific. Teamed identifies the correct local bureau and rates before the first payroll run.
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We register locally
Teamed registers for social insurance in the employee's city. This is a legal requirement in China and cannot be done through the employer's home city bureau for remotely based staff.
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Confirm the package
You decide on commercial health insurance, enterprise annuity, and any discretionary benefits. Teamed sets up the policy or contribution structure and confirms the full cost before go-live.
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Monthly payroll and contributions run
Teamed processes payroll, remits five-insurance-one-fund contributions, and issues payslips. Every employer cost passes through at cost, itemised on the invoice.
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Ongoing compliance support
Rate changes, city regulation updates, and employee life events are handled by the team. You get a real person to call, not a ticket queue.
Frequently asked questions
What annual leave must China employees receive by law?
The minimum paid annual leave is 5 days for employees with 1 to 10 years of total service. It rises to 10 days for 10 to under 20 years and 15 days for 20 or more years. Service counts across all employers in China, not just the current one. China also has 7 statutory public holiday occasions per year, separate from annual leave.
How does sick pay work for employees in China?
China does not have a flat weekly sick pay rate like the UK. Sick leave pay is set as a percentage of wages and depends on length of service. For employees with under two years of service, the minimum is 60% of wages. Rates rise with tenure under the Ministry of Labour [1994] No. 479 rules. Employees are also entitled to a medical treatment period ranging from 3 to 24 months depending on service length, during which the employer cannot terminate the contract.
What is the mandatory employer pension contribution in China?
The mandatory employer contribution to the basic pension insurance scheme is 16% of the contributory wage base. The employee contributes 8%. This rate has been uniform across all major cities since May 2019. On top of this, competitive employers add an enterprise annuity (qiye nianjin) at 3 to 8% of salary. That voluntary layer is what differentiates packages for senior hires.
How much maternity leave must employers provide in China?
The national minimum maternity leave is 98 days, covering 15 days before the expected birth and 83 days after. Many provinces extend this to 128 or more days under local family planning regulations. Maternity insurance contributions (now merged with medical insurance in most cities) fund the benefit through the social insurance system rather than direct employer payment. Verify the local extension for the province of employment.
Is a 13th-month salary mandatory in China?
No. China has no law requiring a 13th-month salary or an annual bonus. However, the Spring Festival bonus of roughly one month's salary is near-universal market practice. Employers who do not pay it face real retention risk, particularly during the Spring Festival hiring season when competitor offers spike. It is not a statutory obligation, but it functions like one in practice across most sectors and cities.
Can Teamed handle social insurance registration across multiple Chinese cities?
Yes. Teamed registers for social insurance in the specific city where each employee is based, which is a legal requirement under the PRC Social Insurance Law. Employees working in different cities from the employer's registered address cannot all be enrolled through one city's bureau. Teamed manages the city-by-city registration, monthly remittance, and housing provident fund contributions, with all employer-side costs passed through at cost and itemised on the invoice.
In China, the statutory floor is just the entry fee. Employers who miss the Spring Festival bonus or get the social insurance city registration wrong face attrition and back-pay liability at the same time. Getting the social insurance right in each city is the unglamorous work that prevents the expensive surprises.
China's 16% employer pension is just one of five mandatory insurances. The Spring Festival bonus is not in the law, but your candidates expect it before the offer lands.
Statutory is the entry fee. The competitive package is what keeps the hire past year one.
China's mandatory social insurance: what the five-plus-one scheme costs
Every employer in China must enrol employees in five mandatory social insurance schemes: pension, medical, unemployment, work injury, and maternity. Most cities also require a housing provident fund. This is called the five insurances and one fund.
The pension component is a uniform 16% from the employer and 8% from the employee. The other four insurance rates and the housing fund rate vary by city.
The five insurance schemes and the housing fund are administered by local social insurance bureaus. Every employer must register in the city where the employee works, obtain a local social insurance registration number, and remit contributions on the local contribution base each month.
What is uniform nationally
What varies by city
Medical insurance, unemployment insurance, and housing provident fund rates differ by city. For example, in Shanghai in 2026: medical insurance runs at approximately 9.5% employer, in Beijing at approximately 9%. Unemployment rates are typically 0.5% employer plus 0.5% employee. The housing provident fund ranges from 5 to 12% each side, city-determined.
The total employer social insurance burden (excluding housing fund) typically lands between 22 and 28% of the contributory wage base depending on city. Add the housing provident fund and the number rises further. Employers setting up in a new city must obtain the precise rate schedule from the local social insurance bureau before running payroll.
Key compliance note
Social insurance in China must be paid through the city where the employee is physically based and has a work permit. Remote employees working in a different city from their employer's registered address require a separate social insurance registration in the employee's city. Paying all contributions in the employer's home city is a common non-compliance risk.