【2020】How much Social Insurance you have to pay in China

On January 1, 2019, employers will need to have their business ready for a big change to China’s social insurance system: social insurance contributions will be levied by China’s tax bureau.

How much social insurance you have to pay?

Below we made a table for most of our general client according to their real situation for reference.

Does company legal person need to buy social insurance?

The legal person is the head of the company and assumes all legal liabilities of the company.The company need to buy social insurance for legal person and other on-the-job personnel on time.

Others tips for employer

Employers that pay the minimum social insurance contributions for employees need to be careful with calculations because the tax bureau will be able to spot short payments;

Employers that have not treated social insurance contributions for dispatched employees or low-cost workers seriously need to review their practices immediately because the tax bureau will inspect all salary related information, personal data, and social insurance information together with the company’s tax information;

Employers need to register and pay social insurance for employees in company-registered cities because the tax bureau will identify grey practices (such as using a local agency to pay social insurance for an employee in a city where the company is not registered; the employee’s tax account will show no social insurance payment);

Employers should be aware that in recent years the authorities have increased penalties for companies that are not compliant with social insurance regulations, particularly for non- and under-payment, and we expect these penalties to become more severe after January 1.