Outsourcing vs EOR vs DIY software in China

Model Best when Next step
Payroll outsourcing You already have a China WFOE or local entity and want specialists to run month-end Get outsourcing quote
EOR You need to hire before incorporating EOR China
HR / payroll software Your in-house team will run payroll on your entity HR software China

Run Accurate, Compliant Payroll Across China

China payroll is city-specific: social insurance and housing fund bases differ by location, while Individual Income Tax follows national progressive rules. We manage multi-city China payroll with consistent controls.

Built for foreign HQs with a China entity. Need to hire without one? Use Employer of Record (EOR) — same specialist team, different employment model.

China outsourcing hub

China Payroll Services We Deliver

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Social Insurance

Pension, medical, unemployment, work-injury, and maternity components by city rules.

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Housing Fund

Housing provident fund employer/employee shares by local policy.

📑

IIT Withholding

Cumulative IIT methods and monthly withholding support.

💰

Multi-city Payroll

Consolidate Beijing, Shanghai, Shenzhen, and other city policies.

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Payment Support

Salary payment file preparation for local banks.

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Policy Monitoring

Track city base/rate adjustments each year.

China Payroll Compliance Checklist

Our China payroll compliance process typically covers social insurance, housing fund, and Individual Income Tax alongside core employment pay rules:

  • Social insurance: Five social insurance types with city contribution bases and rates.
  • Housing fund: Mandatory housing provident fund contributions where required.
  • Individual Income Tax: Monthly IIT withholding with cumulative calculation approaches.
  • Local filings: City bureau calendars and contribution declarations.

Rates, ceilings, and forms are set by local authorities and can change. We configure your payroll to current rules and notify you when updates affect costing.

IIT, Social Insurance & Housing Fund Split (China)

ComponentEmployer (illustrative)Employee (illustrative)Notes
Pension (basic endowment)~16%~8%Of local contribution base; city caps apply
Medical (+ maternity where merged)~8%–10%~2%City schedules; large-medical may add
Unemployment~0.5%~0.5%Local rate & base
Work injury~0.2%–1.9%—Employer only; industry / city band
Housing provident fund~5%–7%+~5%–7%+City banded; some cities allow higher
Individual Income Tax (IIT)Withhold & remitProgressive 3%–45%National cumulative monthly withholding

Note: Percentages above are illustrative only. Always configure using the employee’s contribution city — Shanghai, Beijing, Shenzhen, and Chengdu bases and rates differ. We apply live local schedules each cycle — see our China compliance guide.

China payroll filing calendar (typical)

Item Typical timing Owner
Monthly payroll closeAgreed cut-off before paydayClient inputs · APH calculates
Social insurance & housing fundDeclare & remit per city bureau calendarEmployer entity · APH pack
IIT withholdingMonthly withhold & declare to tax bureauEmployer entity · APH pack
Payslips & bank filesOn your paydayAPH
Annual IIT settlement supportYear-end / early following year windowAPH support · client / employee filing
Joiners / leaversSI / housing fund enrolment & exit by city rulesClient HR · APH checklist

How China Payroll Outsourcing Works

A clear monthly cycle designed for accuracy, approval control, and on-time employee payments.

1

Inputs & Cut-off

Submit joiners/leavers, attendance, overtime, allowances, and one-off payments before the agreed cut-off via our HR technology platform.

2

Gross-to-Net Calculation

We calculate gross pay, social insurance, housing fund, and Individual Income Tax, and net pay, then produce draft payroll reports for your review.

3

Client Approval

Approve or request adjustments. Nothing is finalized without your go-ahead.

4

Pay & Payslips

We prepare bank payment files and issue payslips so employees are paid on your payday.

5

Statutory Filings

Insurance and tax obligations are prepared for remittance/reporting according to China deadlines and your entity setup.

Shanghai, Beijing, Shenzhen & Multi-city Payroll

Foreign employers usually concentrate headcount in Shanghai (HQ and trading), Beijing (policy and services), Shenzhen / Greater Bay (tech and manufacturing), and inland hubs such as Chengdu / Chongqing. Our China payroll outsourcing maps each employee to the correct social-insurance and housing-fund city — then runs one approval calendar for the whole group.

Shanghai & East China

Regional HQs needing English packs for overseas finance and city-correct SI / housing fund bases.

Beijing & North

Services and policy-facing teams on the same IIT engine with local bureau calendars.

Shenzhen / GBA & inland

Tech, plant, and shared-services headcount with multi-city contribution mapping on one cut-off.

Who this China payroll service is for

  • WFOE and JV entities paying staff in RMB across one or more cities
  • Hospitality, retail, and manufacturing groups adding China property or plant headcount
  • Regional HQs needing multi-city SI / housing fund discipline with overseas finance reporting

Implementation path

1

Kickoff

Entity details, contribution cities, employee master, pay elements, and cut-off calendar.

2

Configuration

City SI / housing fund bases and rates, IIT profiles, allowances, and bank file formats.

3

Parallel run

One test cycle to validate net pay, SI drafts, housing fund, and IIT withholding.

4

Go-live

Monthly gross-to-net, payslips, bank files, and SI / housing fund / IIT support packs.

China Payroll Questions Buyers Ask

Why can’t we use one national social insurance rate?

Contribution bases, caps, and percentages are set by city. Applying a flat national average will miscalculate employer cost and create remittance errors.

Do you support multi-city headcount on one entity?

Yes. Each employee is mapped to the correct contribution city while sharing one cut-off, approval, and English HQ reporting pack.

Is IIT calculated with cumulative monthly withholding?

Yes. We apply national progressive IIT rules with cumulative calculation each month as part of the China payroll cycle.

Statutory rates & rules last reviewed: September 2026 · Reviewed quarterly for China payroll

Multi-city payroll for Asia hospitality groups

Clients including InterContinental, Holiday Inn, Swissôtel, and Karma Group use Asia Payroll Hub to map the right China social insurance and housing fund rules by city — not a flat national rate.

Want a similar outcome in China? Request a scoped payroll/EOR proposal or compare paths on our Employer of Record page.

常见问题(中文)

中国薪资外包包含哪些内容?

按参保城市配置社保公积金、计算个税代扣,并提供工资条与发薪支持。

没有中国主体可以雇人吗?

可评估 EOR,在合规前提下先雇佣再考虑设立实体。

Already Have a China Entity — or Still Entering the Market?

Local entity payroll outsourcing

Best if you already have a China company and want us to run monthly payroll and statutory processes for your staff.

Request payroll outsourcing

Hire without an entity (EOR)

Best if you need to employ talent in China quickly without incorporating. We handle employment and compliant payroll delivery.

Explore EOR China

China Payroll Challenges Foreign Employers Face

Complex social insurance, housing fund, and Individual Income Tax calculations

Manual spreadsheets miss ceilings, brackets, and exceptions.

Our solution: Automated gross-to-net with draft reports before payday.

Regulatory change risk

China contribution and tax rules can shift with little internal notice.

Our solution: Continuous compliance monitoring and configuration updates.

Multi-country fragmentation

China often sits beside other Asia entities with different rules.

Our solution: One regional process via our multi-country payroll platform.

Local process & language gaps

Banks, authorities, and employees expect local documentation clarity.

Our solution: Local specialists plus clear English HQ reporting.

China Payroll FAQs

Why do China payroll rates differ by city?

Social insurance and housing fund contribution bases and percentages are set locally, so Shanghai and Chengdu can differ materially.

Do you support multi-city headcount?

Yes. Each employee can be mapped to the correct contribution city.

Can foreign companies hire via EOR in China?

EOR can be used for compliant employment depending on your expansion model — talk to us about the right path.

Do you calculate IIT?

Yes, monthly IIT withholding is part of the China payroll cycle.

How long does setup take?

Often 3–6 weeks depending on cities and registration readiness.

View all FAQs · Talk to a China payroll specialist

HR payroll system China · EOR China

Expanding Across Asia?

Pair China with neighboring payroll operations under one partner.

Hong Kong Payroll → Taiwan Payroll → Japan Payroll → South Korea Payroll → Singapore Payroll → All Countries →

Ready to Outsource China Payroll?

Get a clear quote for compliant China payroll outsourcing — or hire through EOR without opening an entity.

Get China Outsourcing Quote View Pricing