In China, the social security system consists of 5 mandatory insurances and one housing fund, often referred to as “五险一金” (wu xian yi jin). These include:
- Pension Insurance
- Medical Insurance
- Unemployment Insurance
- Work-Related Injury Insurance
- Maternity Insurance
- Housing Provident Fund (not technically insurance, but mandatory)
You can easily calculate the five social insurances and one housing fund here.
Employer Responsibilities
- Employers are required to register employees for social security within 30 days of starting employment.
- They must contribute a significant portion to each category (percentages vary by city and province).
Employee Responsibilities
- Employees also contribute a portion of their salary to the same funds, usually deducted automatically from their wages.
Both parties must submit their contributions monthly through the local Social Security Bureau.
Recent Updates in Social Security Policies (2024-2025)
As of early 2025, several regions in China have made notable adjustments:
- Rate Adjustments – Cities like Shanghai and Shenzhen have revised employer and employee contribution rates to better align with economic conditions.
- Unified National Platform Rollout – More provinces are transitioning to centralized online platforms for streamlined reporting and payment.
- Policy Integration – Some social insurance categories, such as maternity and medical insurance, are now being merged in certain cities to simplify administration.
For foreign employees, coverage is increasingly being enforced in Tier 1 and Tier 2 cities, meaning more expats must participate in China’s social security system unless exempted by a bilateral agreement.
Common Compliance Mistakes
Businesses often make errors that lead to fines, back payments, or employee dissatisfaction. Common pitfalls include:
- Incorrect Contribution Base – Contributions must be calculated based on an employee’s average monthly wage, capped within the city’s defined limits.
- Delayed Registration or Payments – Failing to register new hires or remit payments on time can lead to penalties.
- Ignoring Regional Differences – Contribution percentages, caps, and policies vary across cities – what’s compliant in Beijing may not apply in Chengdu.
- Excluding Foreign Employees Improperly – Unless covered by a treaty, foreign workers must be enrolled in the system.
Conclusion
Staying compliant with social security China regulations is essential for building a trustworthy employer brand and avoiding legal risks. Employers must stay informed on regional rules, recent policy changes, and their contribution responsibilities. Employees, in turn, should understand their entitlements and ensure deductions are accurately reflected in their payslips. With proper planning and the support of knowledgeable payroll or HR partners, social security management can be both compliant and efficient.
