The short answer: the five insurances plus the housing fund are mandatory; the rest is optional. Unlike the US, where health insurance and retirement savings are largely employer-discretionary and market-driven, China's core benefits are legally compulsory.
Legal basis
- Article 2 of the Social Insurance Law: the state establishes pension, medical, work-injury, unemployment, and maternity insurance systems.
- Article 58: the employer must register employees for social insurance.
- The Housing Fund Regulation requires employer and employee contributions.
Key points
- Mandatory: pension, medical, unemployment, work-injury, and maternity insurance, plus the housing fund — both sides contribute.
- Optional: supplementary medical, commercial insurance, extra leave, meal and transport allowances — employer discretion, used to attract and retain.
- Statutory benefits are a baseline — a higher salary cannot replace paying social insurance.
- Optional benefits matter more and more in the talent war, but only after the mandatory ones are compliant.
Practical tips
- Document optional benefits with clear eligibility and cancellation rules.
- Avoid benefits "becoming statutory" — long-term, stable benefits may be treated as part of wages.
- Itemize benefits separately from wages to avoid disputes.
Note for foreign employers
- Notify and consult before changing benefit plans — avoid unilateral changes that spark disputes.
Note for foreign employers
- Family-visit, marriage, and bereavement leave follow national and local rules.
Getting the mandatory benefits right is the compliance baseline; extra benefits are how you compete for talent — do both. Need help with benefit design? Contact CRBPO.
About CRBPO
Founded in 2003, CRBPO (中瑞岳华) is a professional HR service provider with 20+ years in the China market, offering executive search, RPO recruitment, staffing & dispatch, global EOR, tax & accounting, and monthly HR subscription — across 30+ cities — to help foreign companies run compliant, efficient operations in China.
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