China’s payroll system includes various regulations and failure to comply with payroll regulations may lead to costly penalties. Regulations are issued from over 600 city-level government offices. Every year, all city-level governments update and/or change the mandatory insurance and related funds (social insurance, housing fund rates, and bases, etc.) and policies.
Mandatory benefits are dependent on the city but typically refer to “5 insurances and 1 fund” (5 insurances: pension, medical, unemployment, maternity, work-related injury. 1 fund: accumulated housing fund). Benefits vary by city and policies for foreigners are often different than policies for locals.
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