Social Insurance & Housing Fund Complete Guide 2026
Social insurance & the housing fund is one of the most talked-about benefits for every working person in China, yet few truly understand it. Where does the "social insurance & housing fund" deducted on your monthly payslip actually go? How much do individuals and employers each pay? How much pension will you receive after retirement? How much can medical insurance reimburse? What is the smartest way to use the housing provident fund? This article systematically explains the 2026 contribution rates, the upper and lower limits of the contribution base, how each benefit is calculated, and common misconceptions, so you can finally make sense of the whole picture.
1. What Are Social Insurance & the Housing Fund?
The "five insurances" refer to employee basic pension insurance, basic medical insurance, unemployment insurance, work-related injury insurance and maternity insurance. They are compulsorily collected by the state, with individuals and employers sharing contributions at statutory rates (work-related injury and maternity insurance are paid by the employer only). The "one fund" refers to the housing provident fund — not legally compulsory, but it has become a standard benefit for urban employment. In short: the five insurances cover birth, aging, illness, death, injury and unemployment, while the housing fund covers housing.
2. 2026 Contribution Rate Table
Contribution rates for social insurance & the housing fund follow a unified national framework, but cities vary slightly on medical, unemployment and housing fund items. The table below shows typical rates for most cities across the country:
| Insurance type | Employee rate | Employer rate | Notes |
|---|---|---|---|
| Pension insurance | 8% | 16% | The employee portion goes into the individual account; the employer portion goes into the pooled fund |
| Medical insurance | 2% | 8%-10% | The employee portion fully credits the medical insurance card; the employer portion is allocated proportionally |
| Unemployment insurance | 0.5% | 0.5%-1% | Rates temporarily reduced in some regions |
| Work-related injury insurance | 0% | 0.2%-1.9% | Banded by industry risk; employees do not contribute |
| Maternity insurance | 0% | 0.8%-1% | Already merged into medical insurance in most regions |
| Housing provident fund | 5%-12% | 5%-12% | Employees and employers pay the same rate; the full amount goes into the individual account |
3. Contribution Base Upper & Lower Limits in Five Cities (2026 Reference)
The contribution base is normally benchmarked against the previous year's average social wage. The lower limit is 60% of that average wage, and the upper limit is 300%. If your actual salary falls between the two limits, your actual salary is used as the base.
| City | Social insurance base floor (CNY/month) | Social insurance base ceiling (CNY/month) | Housing fund base ceiling (CNY/month) |
|---|---|---|---|
| Beijing | 6,326 | 33,891 | 33,891 |
| Shanghai | 7,310 | 36,549 | 36,549 |
| Guangzhou | 5,225 | 27,285 | 27,285 |
| Shenzhen | 2,660 (medical) / 5,225 (pension) | 27,285 | 27,285 |
| Hangzhou | 5,240 | 26,205 | 39,660 |
4. How Is the Pension Calculated? How Much Will You Get?
An employee's retirement pension = basic pension + individual account pension, payable once you have accumulated 15 years of contributions and reached the statutory retirement age.
- Basic pension = local average social wage of the previous year at retirement × (1 + your average contribution index) ÷ 2 × contribution years × 1%
- Individual account pension = accumulated balance in your individual account ÷ number of payout months (139 if retiring at 60, 170 at 55, 195 at 50)
Example: A Beijing employee retires at 60, with an average social wage of ¥11,000, 30 years of contributions, an average contribution index of 1, and ¥400,000 in the individual account.
- Basic pension = 11,000 × (1+1)/2 × 30 × 1% = CNY 3,300
- Individual account pension = 400,000 ÷ 139 ≈ CNY 2,878
- Total monthly pension ≈ CNY 6,178
5. Medical Insurance Reimbursement Rates
| Scenario | Deductible (CNY) | Reimbursement rate | Annual cap |
|---|---|---|---|
| Outpatient (employed) | 200-500 | 70%-85% | CNY 20,000-40,000 |
| Outpatient (retired) | 100-300 | 80%-92% | CNY 20,000-40,000 |
| Inpatient (level-1 hospital) | 200-400 | 85%-95% | CNY 100,000-500,000 |
| Inpatient (level-2 hospital) | 400-800 | 75%-88% | CNY 100,000-500,000 |
| Inpatient (level-3 hospital) | 800-1,300 | 70%-85% | CNY 100,000-500,000 |
6. When Can You Claim Unemployment / Work-Injury / Maternity Benefits?
- Unemployment insurance: If you have contributed for 1+ years, stopped working involuntarily, and registered as unemployed, you can receive CNY 1,000-2,500/month for up to 24 months.
- Work-related injury insurance: For injuries from work-related accidents during working hours and in the workplace, or occupational diseases, once recognized, medical expenses, disability subsidies, nursing fees and more are paid by the fund. Disability grades 1-10 carry corresponding one-time subsidies.
- Maternity insurance: Female employees who have contributed continuously for 6-12 months can enjoy maternity-leave pay, reimbursement for prenatal checkups and delivery medical expenses when giving birth; the unemployed spouse of a male employee can also be partially reimbursed.
7. Common Ways to Withdraw from and Borrow Against the Housing Fund
- Withdrawal: Renting (a set proportion of your rent each month), home purchase down payment / monthly repayments, account closure (retirement / going abroad), major home repairs, and repaying housing-loan principal and interest, etc.
- Loans: The housing fund loan rate for a first home over 5 years is 2.6%, far below commercial loans; the limit is calculated from a multiple of your account balance (10-20×) plus contribution years plus the city cap.
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8. Common Misconception: Paying on the Minimum Base vs Your Actual Salary
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