Employment Cost Calculations for a 元 135,000.00 Salary in China
Employing staff in China involves understanding the various costs associated with a salary. For a salary of 元 135,000.00 per annum, there are several factors that contribute to the total employment cost. This article aims to provide a detailed breakdown of these costs, helping employers in China navigate through the financial responsibilities of hiring employees.
China Cost of Employee Earning 元 135,000.00 Salary per Annum Calculation | 元 135,000.00 | Annual Salary in 2024 |
| + | 元 13,770.00 | China Employers Social Security Contributions on 元 135,000.00 in 2024 |
| |
| = | 元 148,770.00 | Total Payroll cost of Employee in China in 2024 |
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元 135,000.00 Salary in China - Payroll Cost Analysis
As an employer in China, it is clearly important to understand the gross salary you pay your employees as this figure tends to be used for salary comparison against other related jobs and positions when recruiting and retaining staff in China. A good employer also understands the value of understanding "net pay" or "take home pay" as it is commonly referred to. Visability of the take home pay your employees in China attain is important for understanding how they cope with the cost of living in China and ensuring that they have sufficient funds to engage their focus in work activities during employment hours, i.e. they are not preoccupied with financial concerns due to poor salary or considering leaving for better salary package oppertunities.
Employer Cost Elements
Employee Cost Elements Key Points:
Employer Socail Security1: 9.26%
Gross Salary1: 90.74%
元 135,000.00 Salary Elements
元 135,000.00 Salary Elements Key Points:
Employee Socail Security2: 32.3%
Personal Income Tax2: 4.64%
Take Home Pay2: 63.06%
Note1: Employer Social Security and Salary percentages shown as a percentage of total employment cost in China.
Note2: Employee Social Security, Personal Income Tax and Take Home Pay in China shown as a percentage of Gross Salary in China in 2024.
What is the take home pay on a 元 135,000.00 salary in China?
For our 元 135,000.00 salary in China, our employee would have an annual take home pay after payroll deductions and taxes of 元 85,125.50 which is 63.06% of their gross pay, you can see a salary and payroll deductions example for 元 135,000.00 here.
What are the employer costs on a 元 135,000.00 salary in China?
As we showed on the snapshot table earlier, the cost on an employee on a 元 135,000.00 annual salary in China is 元 148,770.00, let's take a look at how this figure was calculated:
China: Employer Social Security and Payroll Contributions Calculation 2024 | 元 10,800.00 | China Employers Contributions for Pension in 2024 |
| + | 元 2,700.00 | China Employers Contributions for Medical Insurance in 2024 |
| + | 元 270.00 | China Employers Contributions for Unemployment Insurance in 2024 |
| |
| = | 元 13,770.00 | China Employers Contributions on 元 135,000.00 in 2024 |
China: Employer Contributions Calculation for Pension 2024 | 元 135,000.00 | Salary in 2024 |
| x | 8% | China Employer Contribution Rate for Pension in 2024 |
| |
| = | 元 10,800.00 | China Employers Contributions for Pension on 元 135,000.00 in 2024 |
China: Employer Contributions Calculation for Medical Insurance 2024 | 元 135,000.00 | Salary in 2024 |
| x | 2% | China Employer Contribution Rate for Medical Insurance in 2024 |
| |
| = | 元 2,700.00 | China Employers Contributions for Medical Insurance on 元 135,000.00 in 2024 |
China: Employer Contributions Calculation for Unemployment Insurance 2024 | 元 135,000.00 | Salary in 2024 |
| x | 0.2% | China Employer Contribution Rate for Unemployment Insurance in 2024 |
| |
| = | 元 270.00 | China Employers Contributions for Unemployment Insurance on 元 135,000.00 in 2024 |
These calculations are based on the annual gross salary of 元 135,000.00 and the Social Security Rates and Thresholds for China during the 2024 tax year which are displayed below.
China Social Security in 2024: Rates for Employers and Employees| Social security category | Employee | Employer | Total |
|---|
| Pension | 20% | 8% | 28% |
| Medical Insurance | 10% | 2% | 12% |
| Unemployment Insurance | 1% | 0.2% | 1.2% |
| Work-related Injury Insurance | 0.5% | 0% | 0.5% |
| Maternity Insurance | 0.8% | 0% | 0.8% |
| Housing Fund | 0.12% | 0.426% | 0.546% |
| Beijing Social Insurance | 0.22% | 0.426% | 0.646% |
China Social Security in 2024: Earnings Thresholds for Employers and Employees| Social security category | Employee | Employer |
|---|
| Min. | Max. | Min. | Max. |
|---|
| Pension | n/a | n/a | n/a | n/a |
| Medical Insurance | n/a | n/a | n/a | n/a |
| Unemployment Insurance | n/a | n/a | n/a | n/a |
| Work-related Injury Insurance | n/a | n/a | n/a | n/a |
| Maternity Insurance | n/a | n/a | n/a | n/a |
| Housing Fund | 元 2,834.00 | 元 2,834.00 | 元 2,834.00 | 元 2,834.00 |
| Beijing Social Insurance | 元 21,258.00 | 元 21,258.00 | 元 21,258.00 | 元 21,258.00 |
Holistic Cost of Employee in China calculations
In this cost of employment analysis of a 元 135,000.00 salary in China we have focused on the specific payroll elements of Basic Salary and Social Security but this is not a holistic employment cost calculation. The true cost of employing someone with a salary of 元 135,000.00 per annum in China extends well beyond the gross salary. Employers must account for social security contributions, taxes, additional benefits, training costs, administrative expenses, and legal obligations. A comprehensive understanding of these elements is crucial for effective financial planning and management of human resources in China. This is particulalry true for the first year of employment when setup costs are higher.
1. Basic Salary
The base of the employment cost is the gross salary, which in this case is 元 135,000.00 per annum. This amount is what the employee earns before any deductions or additional costs are considered.
2. Social Security Contributions
In China, employers are required to contribute to social security, which includes Pension, Medical Insurance, Unemployment Insurance, Work-related Injury Insurance, Maternity Insurance, Housing Fund, Beijing Social Insurance. In 2024, an employer contributions typically amount to around 11.052% of the gross salary where as employees typically contribue 32.64% to social security in China.
3. Additional Benefits and Bonuses
Many employers in China offer additional benefits such as bonuses, and other perks. These should be factored into the total employment cost as they can significantly increase the overall financial commitment.
4. Training and Development Costs
Investments in training and development are vital for keeping your employees in China skilled and motivated. These costs can vary but should be included in the total employment cost calculation.
5. Administrative and Overhead Costs
There are also administrative costs related to China payroll management and other HR functions. Overhead costs like workspace, equipment, and utilities attributed to the employee should also be considered.
6. Legal Obligations and Insurance
Employers in China are also responsible for certain legal obligations and insurances, which can add to the employment cost. These include liability insurance and adherence to labor laws and regulations.
Similar Employee Cost Examples in the 135k earning range
You may also find the following salary based employee cost examples for China useful as they were viewed by others who read the "Employment Cost Calculations for a 元 135,000.00 Salary in China", alternatively you can create your own employee cost calculation here.