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A new mandatory social insurance levy is coming to China. Starting soon, the current “Five Social Insurances” will officially become “Six.”
The Chinese government has just released a plan to establish a national Long-Term Care Insurance system. As an employer, here is what this means for your business costs.
What has Changed?
A new insurance scheme will be added to the existing social insurance package. It is designed to cover the cost of care for workers who become severely disabled.
The Key Financial Impact:
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The Cost: The total premium is 0.3% of salary.
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Who Pays: The cost is split equally between the employer and the employee (0.15% each).
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The Base: The contribution is calculated on the total salary bill (total wages paid to all employees).
In short, if you have a team in China, your labor costs will increase by an additional 0.15% of your total payroll.
What About Retirees?
If you employ retired personnel, note that while companies do not have to pay for them, the retired individuals themselves must pay the 0.15% contribution. This is usually deducted automatically from their pension or medical account.
Have questions about your specific situation? Call our hotline at 86+189 1629 8482 (English service available).
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