The short answer: the "five insurances and one fund", contributed by both sides and mandatory. Social insurance in China is comprehensive and compulsory, with both employer and employee contributing monthly at regionally varying rates and bases.
Legal basis
- Article 2 of the Social Insurance Law: the state establishes pension, medical, work-injury, unemployment, and maternity insurance systems.
- Articles 58 and 60: the employer must register employees for social insurance within 30 days of hire and pay in full and on time.
- Article 18 of the Housing Fund Regulation: the contribution ratio for both sides may not be lower than 5% of the employee's average monthly wage in the previous year, and ranges from 5% to 12% as set by each local housing fund committee.
Key points
- Five insurances: pension, medical, unemployment, work-injury, maternity.
- One fund: the housing fund.
- Both sides contribute; rates and bases vary by region and must follow the place of employment.
- Waiving social insurance during probation, or agreeing with the employee to skip it, is invalid and unlawful — a major risk.
Practical tips
- Base contributions on actual wages, not the minimum base indefinitely.
- Social insurance applies during probation too — "no contribution during probation" is not a defense.
- For cross-region staffing, choose the contribution locality carefully to avoid double or missed payments.
Note for foreign employers
- Branches and other domestic entities can register for social insurance; foreign representative offices lack independent hiring capacity and must employ through a qualified HR service provider (EOR) — they may not hire directly.
- Social insurance compliance feeds into corporate credit and compliance reviews — pay in full and on time.
For foreign employers, social insurance and the housing fund are the easiest parts of payroll to get wrong — and the most common source of employee complaints, especially across regions. Need social-insurance compliance and payroll support? 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.
Follow us: WeChat Official Account "中瑞岳华科技服务" | LinkedIn; Hotline: 400-658-9852; Email: os@crbpo.com.