Last updated: November 2, 2026
China EOR cost combines gross salary, employer statutory charges, the service fee and agreed one-time costs; a refundable deposit adds to cash funding rather than recurring expense. Confirm HROne’s service fee, billing currency and pricing unit in a quote for the actual hiring plan.
Confirm billing currency, the number of employees covered, inclusions, taxes, funding dates and the deposit in the actual proposal. Salary, employer contributions, optional benefits, service fees and non-recoverable taxes are expenses; payroll pre-funding changes payment timing, while a refundable deposit remains cash tied up unless applied to liabilities.
For the legal-employer model and responsibilities, read the China Employer of Record guide.
China EOR Cost Formula
Recurring monthly cost = gross salary + employer statutory contributions + EOR service fee + agreed recurring benefits, invoice taxes and FX/bank costs.
First-month cash = first monthly funding requirement + agreed one-time fees + refundable deposit.
The complete budget therefore covers salary + employer statutory costs + service fees + one-time charges + deposit funding, while keeping recurring expense and initial cash separate. Do not count the refundable deposit as twelve months of operating expense, and do not add employee IIT or employee contributions a second time when they are already withheld from gross salary.
| Component | Monthly expense? | First-month cash? | What to confirm |
|---|---|---|---|
| Salary and employer statutory charges | Yes | Yes | Gross/net commitment, work city, contribution bases and rates. |
| EOR fee and recurring benefits | As agreed | As agreed | Scope, employees covered, currency, taxes and payment period. |
| Setup, immigration and non-standard support | Usually one-time when incurred | If due at launch | Actual service and government/third-party charge. |
| Refundable deposit | Not ordinarily a recurring expense | Yes, if required | Amount, refund conditions, permitted set-off and timing. |
| Payroll pre-funding | Timing of the underlying expense | Yes, before the agreed payment date | Do not treat the same funded payroll as a second fee. |
What Does the China EOR Service Fee Cover?
The EOR service fee pays for the provider’s employment administration and compliance work. Depending on the agreement, standard scope may include employment documentation, payroll calculation, individual income tax withholding, social insurance and housing fund administration, payslips, ongoing HR administration, and routine offboarding support.
Providers may price the service as:
- A flat fee per employee per month: Predictable and easy to compare, provided the included scope is clear.
- A percentage of salary: The fee rises when salary, bonus, or commission rises, even if the administrative workload does not change.
- A tiered or customized fee: Pricing changes with headcount, city coverage, compensation complexity, service level, or non-standard support.
- A minimum monthly fee: A minimum may apply even when the employee is unpaid, on extended leave, or employed for only part of a month.
As of November 2, 2026, HROne’s published pricing page lists China EOR service fees starting at USD 150+ per month. This is a service-fee starting point, not the employee’s total employment cost. The actual quote is determined by factors such as employee location, salary structure, headcount, profile, and service scope. The published starting price should not be confused with the total invoice because salary and statutory employer costs remain separate.
Before comparing fees, ask whether the quoted amount includes onboarding, standard contract preparation, regular payroll, payslips, statutory filings, benefit administration, routine employee questions, contract amendments, off-cycle payroll, and ordinary offboarding. A lower base fee can become more expensive if frequently used tasks are separately charged.
The service fee alone also does not tell you who actually delivers the work in China. Whether a provider operates through its own China team or a local partner, it is worth confirming who handles payroll, statutory filings, and employee escalations. These responsibilities are an important consideration when comparing global and local EOR delivery models in China.
How EOR Providers Price Their Services in China
| Pricing model | When it may be used | Terms to confirm in the quote |
|---|---|---|
| Fixed fee per employee per month | A defined recurring employment-administration scope | Minimum headcount, billing period, inclusions, salary changes and off-cycle work. |
| Percentage of payroll | A charge linked to an agreed payroll or salary base | The exact percentage, what enters the base, minimum fee and treatment of bonuses. |
| Foreign-employee add-on | Immigration or additional administration where specifically offered | Eligible cases, scope, government/third-party costs and whether the add-on recurs. |
| One-time onboarding / offboarding fee | Setup, transfer or exit support outside the recurring package | Trigger, amount, standard vs complex work, refunds and duplication with the monthly fee. |
Review HROne China EOR pricing and obtain the agreed amount, currency, pricing unit and scope before comparing quotes. A service fee is only one component of total employment cost.
Is Payroll Pre-Funding an Extra EOR Fee?
No. Payroll pre-funding is normally money advanced so the EOR can pay the employee and remit statutory amounts on time. It is a cash-timing requirement, not a second salary charge.
A monthly funding request may include:
- gross salary and approved variable compensation;
- employer social insurance and housing fund;
- supplementary benefits or allowances;
- the EOR service fee;
- applicable invoice taxes; and
- an adjustment for the prior month’s actual payroll or statutory contribution difference.
Employee-side social insurance, housing fund, and individual income tax should not normally be added again on top of gross salary. They are withheld from the employee’s gross pay and remitted through payroll. The situation changes when the company promises a guaranteed net salary: the employer may then need to gross up compensation so the employee receives the agreed net amount after deductions.
The China payroll guide explains the gross-to-net calculation in more detail. For EOR budgeting, finance teams should focus on the invoice deadline, payroll cutoff, payment currency, reconciliation process, and consequences of late funding.
How Does a China EOR Deposit Work?
Some China EOR providers require a refundable deposit or security reserve. Its purpose is to protect payroll and employment obligations if the client pays late, ends the service, or cannot fund final liabilities. HROne states that a deposit is required in certain cases, and its service process includes refunding the remaining deposit after final settlement and case closure.
The deposit may be calculated using gross salary, total monthly employment cost, or another contractual amount. It may also be recalculated after a salary increase, benefit change, statutory contribution adjustment, or material change in potential exit liability.
Review these points before signing:
- Calculation base: Is the deposit based only on gross salary or on salary plus employer contributions, benefits, service fees, and tax?
- Number of months or fixed amount: Does the contract specify a clear formula?
- Currency: Is the deposit held in RMB, USD, EUR, or another currency?
- Revaluation: Can the provider request a top-up after FX movements or salary changes?
- Permitted deductions: Can it be used for unpaid invoices, payroll, statutory contributions, severance, legal costs, or expected disputes?
- Refund trigger: Is refund tied to the service agreement ending, every employee being fully offboarded, or all potential liabilities being resolved?
- Refund timing: How many business days after final reconciliation will the balance be returned?
- Final-month offset: Can the client apply the deposit against the final invoice, or must it fund the final invoice separately?
Finance should record a refundable deposit separately from monthly operating expense. It still matters to the hiring decision because it increases working-capital needs and may remain unavailable during an exit or dispute.
How Social Insurance and Housing Fund Affect China EOR Cost
Employer statutory contributions are usually the largest addition to gross salary. China’s Labour Law requires employers and employees to participate in social insurance and pay contributions in accordance with law. The housing provident fund is a separate statutory savings program funded by both the employer and employee under the Regulations on Management of Housing Provident Fund.
There is no reliable single national percentage for every China EOR quote. Cost depends on the employee’s registered contribution city, local rates, contribution base, lower and upper limits, and the applicable housing fund ratio. Salary is therefore not always the contribution base. An employee below the local floor or above the local ceiling may produce a different effective employer-cost percentage from an employee whose salary sits within the standard range.
Local bases and limits can be adjusted periodically. A quote should state whether it uses the current official figures, how later adjustments will be reconciled, and whether retroactive differences are passed through. The detailed China social insurance guide covers the legal categories and calculation logic without turning this EOR pricing page into a duplicate social-insurance article.
China EOR Cost by City: 3 Cities × 2 Salary Levels
Shanghai cross-check (November 2026): The Shanghai Taxation Bureau confirms a contribution base range of RMB 7,546–37,731 per month from July 1, 2026. The 2026 Shanghai medical-insurance notice confirms the employer’s 9% medical rate, including maternity. The 2026 work-injury guidance confirms the baseline depends on industry classification and employer claims experience. The six figures below are calculator configuration examples, not binding rates for every client. Beijing and Guangzhou figures still require an independent check against the local authorities before they are used in a quote.
The salary and statutory amounts below reproduce the HROne public calculator’s local-employee defaults retrieved on November 2, 2026: first listed work-injury rate 0.2%, first ordinary housing-fund pair 5%/5%, no supplementary fund or optional benefits. Maternity is included in medical in these configurations. Actual assessed rates and registered bases can differ.
| City | Monthly gross salary | Employer social insurance + housing fund | EOR service fee | Monthly subtotal before optional benefits, invoice tax and FX | First-month cash subtotal including one-time fees and deposit | Configuration retrieved |
|---|---|---|---|---|---|---|
| Shanghai | RMB 15,000 | RMB 4,605.00 | F — agreed recurring fee | RMB 19,605.00 + F | RMB 19,605.00 + F + O + D | November 2, 2026 |
| Shanghai | RMB 30,000 | RMB 9,210.00 | F — agreed recurring fee | RMB 39,210.00 + F | RMB 39,210.00 + F + O + D | November 2, 2026 |
| Beijing | RMB 15,000 | RMB 4,725.00 | F — agreed recurring fee | RMB 19,725.00 + F | RMB 19,725.00 + F + O + D | November 2, 2026 |
| Beijing | RMB 30,000 | RMB 9,450.00 | F — agreed recurring fee | RMB 39,450.00 + F | RMB 39,450.00 + F + O + D | November 2, 2026 |
| Guangzhou | RMB 15,000 | RMB 4,327.50 | F — agreed recurring fee | RMB 19,327.50 + F | RMB 19,327.50 + F + O + D | November 2, 2026 |
| Guangzhou | RMB 30,000 | RMB 8,271.48 | F — agreed recurring fee | RMB 38,271.48 + F | RMB 38,271.48 + F + O + D | November 2, 2026 |
F is the actual recurring fee expressed in the same currency; O is agreed one-time fees, and D is the actual refundable deposit. No HROne-specific amount for F, O or D has been assumed. Add any agreed benefits, tax and FX/bank charges to both the relevant cost and cash budget; avoid double-counting payroll pre-funding.
The Shanghai and Beijing settings use July 2026 bases; Guangzhou’s configuration identifies pension July 2026, unemployment/work injury/housing fund September 2026 and medical/maternity January 2026. Guangzhou pension is capped at RMB 27,603 in the RMB 30,000 salary scenario. Use the calculate statutory employer cost tool for the selected city, then add the actual quote terms.
Are Employee Benefits Included in the EOR Fee?
Usually not. The service fee pays for administration; the benefit itself is normally a separate employer cost. Supplementary medical insurance, allowances, wellness benefits, commercial insurance, or other company-funded benefits may appear as separate invoice lines.
Confirm four amounts for each benefit:
- the premium or benefit value paid for the employee;
- any provider administration or enrollment fee;
- applicable tax treatment; and
- the cancellation, renewal, or early-termination cost.
A benefit may also affect payroll if it is paid as a cash allowance rather than provided directly. The distinction can change employee IIT withholding and the employee’s net pay. China’s Individual Income Tax Law treats salary and wage income as taxable and requires the payer to act as withholding agent. Benefit design should therefore be reviewed before the offer is finalized, not after the first invoice arrives.
For a fuller distinction between mandatory and optional programs, see the China employee benefits guide.
How FX Rates Change the Final EOR Invoice
China payroll and statutory contributions are paid in RMB, while the foreign client may prefer to be invoiced in USD, EUR, GBP, or another currency. Even when the RMB employment cost is unchanged, the client’s home-currency cost can move because of the exchange rate and conversion method.
A transparent agreement should define:
- the source of the exchange rate;
- whether the rate is fixed, daily, monthly, or based on the provider’s bank conversion;
- the date or period used for conversion;
- any disclosed FX spread, handling charge, or buffer;
- whether unused FX buffers are reconciled or refunded;
- who bears gains or losses between invoice date and payroll payment date; and
- how the deposit is converted and refunded.
Do not compare two EOR quotes using only the stated service fee if one provider converts pass-through payroll at a wider rate. Request both the RMB employment-cost schedule and the foreign-currency invoice methodology. This separates genuine employment-cost changes from FX movements.
What Taxes Can Appear on a China EOR Invoice?
Separate employee IIT withheld from gross salary from VAT and related charges on the provider’s taxable transaction. A net-pay guarantee may require an IIT gross-up, but ordinary employee withholding is not an extra employer charge added again to gross salary.
The VAT Law took effect on January 1, 2026. The EOR label does not determine the invoice tax category: confirm the provider’s actual service, taxpayer status, contract and taxable base. The general rate for services outside the specifically listed 13%/9%/zero-rate categories is 6%, subject to applicable rules.
For qualifying labor dispatch by a general VAT taxpayer, official 2026 tax guidance applies 6% under the general method. The 2026 No. 10 transition announcement permits qualifying wages, benefits, social-insurance and housing-fund amounts paid for dispatched employees to be deducted from tax-inclusive sales during January 1, 2026–December 31, 2027, with the required records. Do not carry forward the old 5% simplified dispatch treatment as a current general-taxpayer option.
This does not establish that a particular HROne arrangement is labor dispatch or qualifies for that deduction. Ask the provider to specify the actual invoice category, rate, deductible amounts and documentation, tax-inclusive/exclusive price, local surcharges and change-in-tax terms. Do not apply 6% to the entire payroll budget merely because it appears on a service invoice.
What Termination Costs Should Be Included in the Budget?
Ending an EOR service agreement does not automatically end an employee’s labor contract without cost. Employment must be concluded through a lawful route, and final payroll may include salary through the last working day, unused statutory annual leave, bonus or commission, notice pay, severance, statutory contributions, and other agreed payments.
Articles 46 and 47 of China’s Labor Contract Law identify circumstances in which economic compensation is required and provide the general service-year calculation. The actual outcome depends on the termination ground, employee history, salary base, protected status, local practice, and settlement strategy.
The provider may also charge for non-standard termination support, legal review, negotiation, settlement drafting, or dispute handling. Standard offboarding administration should be distinguished from case-specific legal or employee-relations work.
Use the dedicated guides to review China severance pay and the full process for employee termination in China. This cost article addresses budgeting only and does not replace the legal analysis required before an exit decision.
One-Time Costs for Foreign Employees
| Potential item | Cost basis | Who pays / what to agree |
|---|---|---|
| Work-permit application or sponsor support | Separate government, provider and document-handling charges where applicable | Specify service scope and payer in the employment/service terms; do not treat all charges as a single government fee. |
| Residence permit | RMB 400 for less than 1 year; RMB 800 for at least 1 but less than 3 years; RMB 1,000 for 3–5 years | Confirm approved validity and who pays or reimburses the official charge. |
| Z visa / consular processing | Nationality, location and service channel affect charges | Confirm the actual consular schedule and reimbursement arrangement. |
| Health examination | Local authorized provider and required examination | Confirm the clinic, current fee, acceptable prior records and agreed payer. |
| Apostille / authentication, translation and courier | Document origin, destination requirements and suppliers | Itemize the required documents, route, third-party costs and responsibility. |
The NIA residence-permit guide and official charging notice provide the residence-fee bands. Other actual charges and cost allocation must be confirmed for the case. Review work permit sponsorship through an EOR before making a start-date commitment; approval is not guaranteed.
Common Hidden Fees in China EOR Pricing
“Hidden fee” does not always mean an improper charge. It often means a charge that was not included in the buyer’s comparison model. Common examples include:
- setup or employee onboarding fees;
- minimum monthly fees;
- contract amendment fees;
- off-cycle or urgent payroll fees;
- benefit enrollment and administration charges;
- expense or allowance processing charges;
- bank transfer and payment charges;
- FX spreads or currency buffers;
- year-end or special payroll processing;
- non-standard termination and settlement support;
- legal consultation or dispute-management fees;
- deposit top-ups after salary or risk changes; and
- late-payment interest or payroll delay charges.
Ask the provider to mark every item as included, pass-through, optional, event-based, or outside scope. That one classification makes quotes far easier to compare.
Worked Example: Monthly Cost Versus First-Month Cash
Use Shanghai’s public-calculator default local-employee scenario: RMB 30,000 monthly gross salary, RMB 7,710 employer social insurance (16% pension, 9% medical including maternity, 0.5% unemployment and an assumed 0.2% work-injury rate), plus RMB 1,500 housing fund at the selected 5%. Employer statutory charges are therefore RMB 9,210. This differs from a 7% housing-fund illustration, which would produce a higher cost.
| Item | Amount / formula | Budget treatment |
|---|---|---|
| Gross salary | RMB 30,000.00 | Recurring expense |
| Employer social insurance | RMB 7,710.00 | Recurring expense |
| Employer ordinary housing fund | RMB 1,500.00 | Recurring expense at the assumed 5% |
| Salary plus employer statutory charges | RMB 39,210.00 | Verified calculator scenario subtotal |
| Actual EOR fee and agreed recurring extras | F + agreed benefits, invoice tax and FX/bank charges | Add the actual proposal amounts |
| Actual one-time fees and deposit | O + D | Add to first-month cash when due |
| First-month cash | 39,210 + F + recurring extras + O + D | Deposit is cash funding, not automatically an expense |
Shanghai’s 2026 social-insurance base notice, medical-contribution notice and housing-fund notice explain the underlying local rules. Compare 2026 social insurance rates by city before changing the city or contribution assumptions. No standard HROne deposit or individual quote is inferred from the example.
How to Compare China EOR Quotes on an Apples-to-Apples Basis
- Fix the employee assumptions. Use the same city, salary, bonus, benefits, start date, and employment duration for every quote.
- Separate pass-through employment costs. Compare salary, employer statutory contributions, and benefits independently from the service fee.
- Normalize the service period. Calculate twelve-month fees, minimums, one-time charges, and event-based charges.
- Model cash as well as expense. Add payroll pre-funding dates and the refundable deposit to the liquidity plan.
- Standardize FX. Recalculate every quote using the same reference rate, then identify the provider’s spread or buffer.
- Confirm tax treatment. Check whether fees are tax-inclusive and which invoice lines are taxed.
- Add exit assumptions. Include a reasonable severance or settlement reserve and any offboarding fees.
- Request a sample invoice. The sample should show gross salary, employee deductions, employer contributions, benefits, service fee, taxes, FX, prior-period adjustments, and deposit separately.
The best quote is not necessarily the one with the lowest service fee. It is the one that makes the full employment cost, cash timing, statutory assumptions, FX method, tax treatment, deposit terms, and exit exposure visible before the employee starts.
When Does Your Own Entity Become Cheaper Than an EOR?
Compare the costs that actually change between models. Salary and many statutory employer charges remain under either structure. Entity setup and annual accounting, tax, banking, HR and governance costs must be compared with avoidable EOR fees and the expected headcount and duration; add employee-transfer and operational costs where relevant.
For a planning model, a possible break-even headcount is annual incremental entity setup/maintenance cost ÷ annual avoidable EOR fee per employee, with setup cost spread over the chosen planning horizon. This is only useful when like-for-like costs are included and the entity can legally support the work. Local invoicing, licenses and business substance may make entity setup necessary regardless of fee arithmetic. Review EOR vs WFOE cost; no universal break-even headcount is promised.
Get a Clear China EOR Cost Estimate
Share the role, work city, salary, nationality, benefits and intended start date to obtain an itemized estimate separating recurring employment cost, service fees, one-time items and initial cash funding.
Frequently Asked Questions
How much does a China EOR cost?
Total cost includes salary, employer statutory charges, the agreed EOR fee and relevant benefits, tax and FX/bank costs; first-month cash can also include setup charges and a refundable deposit. Request an itemized HROne quote specifying the fee, billing currency, pricing unit and scope before committing to a budget. The service fee alone is not total employment cost.
Is the EOR service fee the total employment cost?
No. The EOR fee is only the charge for employment administration and compliance support. Salary, employer statutory contributions, benefits, taxes, FX costs, and exit liabilities are separate unless the quote expressly bundles them.
Why is the first China EOR invoice higher than the monthly cost?
The first cash request may include payroll pre-funding, the first month’s service fee and tax, and a refundable deposit. The deposit is usually a cash-flow item rather than a recurring expense, provided it is returned after final settlement.
Are employee IIT and employee social insurance extra employer costs?
Normally, no. They are deducted from the employee’s gross salary. They can increase employer cost when the employer promises a guaranteed net salary and must gross up the compensation.
Why does China EOR cost vary by city?
Social insurance and housing fund rates, contribution bases, floors, ceilings, and local administration vary. The employee’s registered contribution location can therefore materially change employer cost.
What should an EOR deposit clause explain?
It should explain the calculation base, amount, currency, top-up rules, permitted deductions, refund conditions, refund timing, dispute treatment, and whether the deposit can offset the final invoice.
How can FX create a hidden EOR cost?
The provider may use a bank conversion rate, contractual spread, buffer, or different conversion date. Buyers should request the RMB cost schedule and the foreign-currency conversion method separately.
Does China EOR cost include severance?
Usually not as a standard monthly line unless the provider creates an accrual. Severance, notice pay, unused leave, final bonus, and case-specific termination support should be modeled separately.
