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How Much You Need to Pay Social Insurance in China? Take Hangzhou as Example

From time to time we have foreign investment companies and expats in China asking us how much they should pay for insurance. Here we take Hangzhou city as an example to clarify how to calculate this.


1. The Calculation Base of Social Security Payment in Hangzhou

(1) The latest calculation base range of social security payment in Hangzhou is RMB 3321.6 to RMB 17880.75.

(2) If the employee's monthly salary is within the above range, the salary shall be taken as the calculation base of social security payment.

(3) If the employee's monthly salary is less than RMB 3321.6, the calculation base is RMB 3321.6.

(4) If the employee's monthly salary is more than RMB 17880.75, RMB 17880.75 shall be taken as the calculation base.


2. The Proportion of Social Security Payment in Hangzhou

(1) Endowment insurance: the payment proportion of employers is 14%, and that of employees is 8%.

(2) Medical insurance: the payment proportion of employers is 10.5%, and that of employees is 2%.

(3) Unemployment insurance: the payment proportion of employers is 0.5%, and that of employees is 0.5%.

(4) Industrial injury insurance is only paid by employers, and the payment proportion is determined according to the industry category. Because your company is engaged in software development, which belongs to the first category, so the payment proportion is 0.5%.

(5) Maternity insurance is only paid by employers, and the payment proportion is 1.2%.


3. The Calculation Example

The following is the calculation result of an employee's monthly social insurance payment under the four cases of assuming that the employee's monthly salary is RMB 5000, RMB 10000, RMB 15000 and RMB 20000: