Home / City guides / Shanghai
Hiring and
payroll in
Shanghai.
Plan your next hire with Shanghai’s employment rules, payroll deadlines and local contribution tables in one guide.
From offer to first payroll
Your Shanghai hire.
A clear starting point.
- Confirm the legal employer and actual workplace.
- Choose the right employment and payroll arrangement.
- Prepare registrations before the first payroll.
Know both sides of the payslip
Local contributions.
A clearer cost picture.
Social insurance and the housing fund use different bases. Check each scheme before calculating employer costs or take-home pay.
- Pension
- Medical & maternity
- Unemployment
- Work injury
- Housing fund
Your Shanghai hiring guide.
Choose a topic to find the rules, figures and practical steps for your team.
Minimum wage
RMB 2,740 / month
Shanghai’s full-time minimum wage, effective 1 July 2025.
- Employee social insurance and housing fund contributions, overtime and specified allowances are excluded.
- For part-time employment, the hourly minimum is RMB 25; statutory social insurance is excluded.
This is a legal minimum, not a market salary benchmark. [3]
What goes into employer cost?
- Company cost: gross salary + employer social insurance and housing fund contributions + agreed benefits and service fees.
- Employee take-home pay: gross salary − employee contributions − income tax withheld.
- A guaranteed net salary or gross-up changes who bears the deductions.
Income tax & payday
15th of the following month
Income tax filing
Generally, the deadline to report and remit IIT withheld from pay.
For resident employees, salary tax normally uses cumulative withholding. Deductions can change during the year even if monthly salary stays the same.
Pay wages at least monthly and provide a payslip. A bank payday must not be delayed because it falls on a rest day or public holiday.
Overtime pay
150% minimum
Weekday overtime
200% minimum
Rest-day work
Where compensatory time off cannot be arranged.
300% minimum
Public-holiday work
Statutory public holidays.
Percentages apply to the applicable overtime wage base under the standard working-time system. Approved alternative systems have different rules. Do not use the social insurance base.
Monthly payroll checklist
- Collect: approved joiners, leavers, attendance, leave and variable pay.
- Review: gross pay, deductions, net pay and employer costs separately.
- Approve and pay: confirm funding, issue payslips and retain payment and filing records.
Agree input and approval cutoffs around your payday. They are service arrangements, not universal legal deadlines.
Pay & tax
Looking for contribution rates?
The employer and employee tables are in their own section below the guide.
What employers and employees pay
Social insurance covers pension, medical and maternity, unemployment and work injury. The housing fund is a separate contribution towards housing.
- Employer contributions are paid on top of gross salary.
- Employee contributions are withheld from gross salary.
The original HROne database tables below show both views. “Min Cap” and “Max Cap” are monthly contribution amounts in RMB, not salary bands.
Contribution bases
7,546–37,731 RMB / month
Social insurance base
From 1 July 2026.
2,740–37,731 RMB / month
Ordinary housing fund base
2026 contribution year.
A contribution base is the monthly earnings amount used to calculate a contribution. Apply each scheme’s assessment rules, then its lower and upper limits.
Do not copy the housing fund minimum into social insurance. A minimum is a floor, not a base you can choose for every employee.
Rates that need explanation
9% employer total
Medical & maternity
Includes maternity and the local supplementary medical levy. 1 March 2026–28 February 2027.
5%–7% each side
Ordinary housing fund
Employer and employee each contribute, in whole percentage points.
Do not add maternity again. Supplementary housing fund participation is separate. Use the applicable assessment, employer classification and account rules; a displayed rate range is not a free choice for every scheme.
When payments are due
When housing fund payments start
First-ever job
Contributions start from the second month of work.
Moving from another employer
Contributions start from when the new employer pays wages.
These housing fund rules do not determine the social insurance starting month. Account setup or transfer and the annual base assessment are separate steps. [7] [2]
Contributions
Who signs the employment contract?
- You have an eligible China entity: it can employ the worker directly. Outsourcing payroll does not transfer its employer obligations.
- You do not have a China employing entity: review an Employer of Record (EOR) arrangement before committing to a start date. The legal structure, role, workplace and work authorization must fit; labor dispatch restrictions apply where relevant.
Contract essentials
1 month from employment
Written contract deadline
For ordinary full-time employment, arrange a written contract at commencement. If it was not signed then, the legal deadline is within one month.
- State the employer and employee, contract term, duties and workplace.
- Set working hours, rest and leave, remuneration, social insurance and labor protection terms.
- Record any agreed probation within the employment contract.
Probation period
1 month maximum
Contract: 3 months to under 1 year
2 months maximum
Contract: 1 year to under 3 years
6 months maximum
Contract: 3+ years or open-ended
No probation for contracts under three months or task-based contracts.
Only one probation period may be agreed between the same employer and employee. Probation does not permit dismissal without a lawful basis.
Your onboarding timeline
- Before the start date
Agree the employer, role, workplace, start date, gross salary, payday and working-time arrangement. Collect identity, bank and relevant tax and contribution records.
- At commencement
Arrange the signed contract and start the employee registrations.
- 30 daysfrom hiring · registration deadline
Complete the relevant social insurance and Shanghai employment registrations, and housing fund account setup or transfer.
- Before the first payday
Review the first salary, employee deductions and employer contributions. Check the housing fund starting rule in the contribution tab.
Registration deadlines and first-payroll work can overlap. Start the processes together; do not wait until day 30. [16] [11] [7]
Contracts & onboarding
Paid annual leave
5 working days
1 to under 10 years’ service
10 working days
10 to under 20 years’ service
15 working days
20+ years’ service
Eligibility starts after at least one year of continuous work. Entitlement uses total accumulated working years, not only time with your company.
Rest days and statutory public holidays are excluded. Partial-year entitlement and statutory exclusions require a separate check.
Maternity & family leave
98 + 60 days
Maternity leave
98 national days + 60 Shanghai birth-leave days for qualifying births.
10 days
Paternity leave
For qualifying fathers in Shanghai.
5 days per year
Parental leave
For each eligible parent before the child turns three.
Additional maternity days may apply for difficult or multiple births. Leave entitlement and the calculation or funding of maternity benefits are separate questions.
Marriage leave
+7 days
Shanghai’s additional marriage leave
On top of the nationally prescribed marriage leave, for a legally registered marriage.
Public holidays
13 statutory holiday days / year
National entitlement from 2025
Holiday breaks may also include rest days and adjusted working weekends. Check the annual calendar for the exact dates and make-up workdays.
Sick leave
Sick-leave pay and the protected medical-treatment period are separate matters. Keep the medical evidence, dates of absence and employment history with the payroll record.
Policy change: Shanghai HRSS confirmed that the former 1995 sick-pay notice expired on 15 August 2026. Do not use its old service-based percentage table as the current rule. Review the applicable wage rules and employment terms for the absence. [23] [5]
Leave policy
Ending employment
An employer needs a lawful basis to end employment. Paying notice or compensation alone does not make a dismissal lawful.
- Identify whether this is a resignation, mutual agreement, employer dismissal or contract expiry.
- Check the facts, supporting evidence, employee protections and applicable procedure before issuing a notice.
Notice periods
30 days’ written notice
Ordinary employee resignation
3 days’ notice
Resignation during probation
Statutory exceptions apply.
Employer termination under Article 40: 30 days’ written notice or one additional month’s pay, but only where the legal grounds and conditions are met. Other termination routes have different requirements; there is no single notice rule for every dismissal.
Severance pay
Where statutory economic compensation is due:
1 month’s wage / completed year
Starting point for the calculation
- An additional period of six months or more counts as one year; less than six months counts as half a month.
- The wage basis generally uses the previous 12-month average. A special cap and service-year limit apply to high earners.
- The reason for leaving determines entitlement. Do not apply the formula to every resignation or termination.
Long-service cases spanning earlier legal regimes and unlawful dismissal require separate assessment. [19]
Offboarding checklist
15 days after employment ends
Transfer & departure registration
Issue the departure certificate and complete required personnel-file and social insurance transfer procedures within 15 days. Complete Shanghai departure registration within 15 days after the employment relationship ends.
Final wages: Shanghai rules generally require payment when termination formalities are completed, subject to lawful special arrangements.
Termination
Employees working across locations
The employer’s registered city, actual workplace and contribution enrollment location can differ. Establish the applicable arrangement before using Shanghai’s figures for a worker based elsewhere.
Use another city’s guide for that location’s rules; a Shanghai office address alone does not settle every employee’s obligations.
Foreign employees & overseas assignments
- Before the employee starts. Confirm the Shanghai employer, role and work location, and obtain the required work and residence authorization. A business visa alone does not authorize employment. [26] Work permit guide →
- Salary paid partly overseas? Include offshore salary, bonuses and allowances in the China tax review. Payment abroad does not automatically mean tax exemption; shadow payroll reports relevant pay without paying the salary twice. [25] Expat payroll & IIT →
- Social insurance exemption? Foreign employees and covered overseas assignees generally participate. A bilateral agreement may exempt specified schemes if its conditions and documentation requirements are met. Foreign nationality alone is not an exemption. [24] Expat benefits guide →
- Shanghai housing fund. Eligible foreign employees with a Shanghai employment relationship and a qualifying document—such as a Foreigner’s Work Permit or Foreign Permanent Resident ID—may participate by agreement with their employer. Assess this separately from social insurance. [7]
Choosing the support you need
- EOR: review an employment arrangement when you do not have a China employing entity.
- Payroll outsourcing: support recurring calculations, reporting and payroll administration for your employees.
- PEO: discuss broader HR and benefits administration for your existing entity.
- Recruitment: get support finding a candidate.
Official sources
National rules are identified separately from Shanghai rules. Each policy has its own effective period.
- Shanghai social insurance base limitsShanghai HRSS · bases effective 1 Jul 2026
- Shanghai housing fund bases and rates for 2026Shanghai Housing Fund Committee · 2026 contribution year
- Shanghai minimum wage noticeShanghai HRSS · effective 1 Jul 2025
- Shanghai employee medical insurance ratesShanghai medical insurance authorities · 1 Mar 2026–28 Feb 2027
- Shanghai enterprise wage payment rulesShanghai HRSS · 1 Aug 2026–31 Jul 2031
- Shanghai social insurance filing and payment processShanghai tax and related authorities · effective 1 Dec 2023
- Shanghai housing fund administration rulesShanghai Housing Fund Committee · effective 1 Apr 2023 for five years
- Individual income tax withholding rulesState Taxation Administration · effective 1 Jan 2019
- Shanghai employment registration guidanceShanghai HRSS · employment registration guidance, 11 Aug 2025
- PRC Social Insurance Law — employee registrationPRC Social Insurance Law · Article 58 · 2018 amendment
- Shanghai family leave rulesShanghai Population and Family Planning Regulations · amended 25 Nov 2021 · Article 31
- Paid annual leaveState Council · effective 1 Jan 2008 · Articles 2–5
- Employment contracts, probation and terminationPRC Labor Contract Law · amended 28 Dec 2012 · national rules
- Maternity leaveState Council · effective 28 Apr 2012 · Article 7
- Public holidaysState Council · 2024 amendment effective 1 Jan 2025
- Expiry of the former Shanghai sick-pay noticeShanghai HRSS · reply dated 19 Aug 2026 · notice expired 15 Aug 2026
- Social insurance for foreign employees and overseas assigneesShanghai Government · national coverage and treaty exemptions · checked 12 Nov 2026
- Individual income tax for non-domiciled individualsState Taxation Administration · Announcement No. 35 of 2019
- Work authorization for foreign nationalsPRC Exit and Entry Administration Law · Articles 41, 43 and 48
Additional Info
City contribution tables
Shanghai employer and employee contributions.
- Employer contributions
- Added to employer cost
- Employee contributions
- Deducted from gross pay
Social insurance bases: from July 2026 · Housing fund: 2026 contribution year · Medical rates: through February 2027
| Shanghai | Rate | Min Cap | Max Cap |
|---|---|---|---|
| Pension Insurance | 16.00% | ¥1,207.36 | ¥6,036.96 |
| Medical Insurance | 9.00% | ¥679.14 | ¥3,395.79 |
| Maternity Insurance | - | - | - |
| Unemployment Insurance | 0.50% | ¥37.73 | ¥188.66 |
| Work-related Injury Insurance | 0.20% - 1.90% | ¥15.09 - ¥143.37 | ¥75.46 - ¥716.89 |
| Housing Fund | 5.00% - 7.00% | ¥137.00 - ¥191.80 | ¥1,886.55 - ¥2,641.17 |
Shanghai employer contributions
Statutory contributions paid by the employer.
| Shanghai | Rate | Min Cap | Max Cap |
|---|---|---|---|
| Pension Insurance | 8.00% | ¥603.68 | ¥3,018.48 |
| Medical Insurance | 2.00% | ¥150.92 | ¥754.62 |
| Unemployment Insurance | 0.50% | ¥37.73 | ¥188.66 |
| Housing Fund | 5.00% - 7.00% | ¥137.00 - ¥191.80 | ¥1,886.55 - ¥2,641.17 |
Shanghai employee contributions
Statutory contributions deducted from employee pay.
“Min Cap” and “Max Cap” are monthly contribution amounts in RMB, not salary ranges. Check the scheme’s base, effective period and account assessment. Read contribution explanations →
From rules to your budget
What will your
Shanghai hire cost?
Start with the city and gross salary. Use HROne’s calculator to explore employer costs and employee take-home pay.
Employer cost
Salary
+ contributions
Include employer-funded benefits and agreed service fees in your budget.
Employee take-home pay
Gross pay
− deductions
Employee contributions and income tax are deducted from gross pay.
Real teams. Real experience.
See how companies work with HROne.
Shanghai project support and wider China employment experience.
Compare the right things
Different city.
Different payroll setup.
- Compare the workplace, employer registration, contribution bases and housing fund rate.
- A lower headline percentage alone does not mean a lower total employment cost.
China-focused support
Plan your next
Shanghai hire.
Tell us your entity status, role, workplace and proposed start date. Start with a practical discussion about your hiring and payroll needs.
