# China Plant Labor Cost Calculator > Source: https://netray.co/tools/china-plant-labor-cost-calculator > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer Compute fully loaded labor cost per worker and for the whole plant, including employer social insurance, housing fund and overtime premium. ## Category cost-finance ## Erp Kingdee / Yonyou ## Industry Manufacturing ## Region China ## Audience - Plant manager - Finance controller - HR manager ## Tool **Kind:** calculator **Currency:** CNY **Inputs:** #### Headcount **Key:** headcount **Type:** number **Default:** 200 **Min:** 1 **Step:** 5 **Unit:** workers #### Monthly base salary **Key:** gross **Type:** number **Default:** 6500 **Min:** 0 **Step:** 100 **Unit:** CNY #### Employer pension rate **Key:** pension **Type:** number **Default:** 16 **Min:** 0 **Max:** 30 **Step:** 0.5 **Unit:** % **Help:** Varies by city. Confirm with the local social insurance bureau. #### Employer medical plus maternity rate **Key:** medical **Type:** number **Default:** 8.8 **Min:** 0 **Max:** 20 **Step:** 0.1 **Unit:** % #### Employer unemployment plus injury rate **Key:** other_ins **Type:** number **Default:** 1 **Min:** 0 **Max:** 5 **Step:** 0.1 **Unit:** % #### Employer housing fund rate **Key:** housing **Type:** slider **Default:** 7 **Min:** 5 **Max:** 12 **Step:** 1 **Unit:** % #### Overtime per worker per month **Key:** ot_hours **Type:** slider **Default:** 12 **Min:** 0 **Max:** 36 **Step:** 1 **Unit:** hours #### Overtime multiplier **Key:** ot_mult **Type:** select **Default:** 1.5 **Options:** ##### 1.5x weekday **Value:** 1.5 ##### 2.0x rest day **Value:** 2 ##### 3.0x statutory holiday **Value:** 3 **Outputs:** #### Base hourly rate (21.75 days x 8 h) **Key:** hourly **Expr:** gross / 174 **Format:** decimal #### Overtime pay per worker per month **Key:** ot_pay **Expr:** hourly * ot_hours * ot_mult **Format:** currency #### Employer insurance and housing fund per worker **Key:** ins **Expr:** gross * (pension + medical + other_ins + housing) / 100 **Format:** currency **Description:** Assumes salary sits within the local contribution base limits. #### Loaded monthly cost per worker **Key:** monthly **Expr:** gross + ot_pay + ins **Format:** currency **Primary:** true #### Loaded cost per paid hour **Key:** loaded_hour **Expr:** monthly / (174 + ot_hours) **Format:** decimal #### Burden over base salary **Key:** burden **Expr:** (monthly - gross) / max(gross, 1) * 100 **Format:** percent #### Annual plant labor cost **Key:** annual_plant **Expr:** monthly * 12 * headcount **Format:** currency **Primary:** true **Chart:** #### Loaded monthly cost vs overtime hours **Type:** line **X:** ot_hours **From:** 0 **To:** 36 **Steps:** 19 **Series:** - monthly **Disclaimer:** Rates and contribution base limits differ by city and change yearly. Defaults are placeholders, not legal rates. Excludes bonuses, 13th month pay, union fees and severance. ## Content **Intro:** Chinese labor cost is more than the pay slip. Employers pay pension, medical, unemployment, injury and housing fund contributions on top, and overtime carries a legal premium. This tool builds the loaded rate you should use in standard costing and quotes. **Sections:** #### How to use it **Body:** Enter headcount, the base monthly salary and the employer contribution rates for your city. Set typical overtime hours and the multiplier. The tool shows loaded cost per worker, per paid hour and for the whole plant over a year. Use the loaded hourly figure as the labor rate in your ERP routing and standard cost rather than the shop floor wage, otherwise product costs are understated and quotes lose margin. #### The calculation **Body:** Hourly base uses 174 hours per month, which is 21.75 paid days times 8 hours. Overtime pay is hourly rate times overtime hours times the multiplier. Employer contributions are the base salary times the sum of the rates, assuming the salary is inside the local floor and ceiling for contribution bases. Loaded cost is base plus overtime plus contributions. **Bullets:** - Weekday overtime is typically 1.5x, rest day 2x, statutory holiday 3x - Contribution base is capped and floored by city, so check local limits - Loaded hour = monthly loaded cost / paid hours #### Common mistakes **Body:** Many plants use the base wage as the labor rate and treat contributions as overhead, which hides the true cost of overtime-heavy products. Another error is assuming one national rate. Rates and bases differ by city and are reset each year. In Kingdee or Yonyou, keep the labor rate by work center in a table that finance reviews annually, and update routing cost rolls after the update. **Cta:** If you want labor rates and overtime flowing from payroll into ERP work center costs automatically, we can help design that data feed. **Faq:** #### Are the default rates official? **Answer:** No. They are placeholders close to common ranges. Employer rates depend on the city, industry injury class and year. Replace them with the figures from your local bureau or payroll provider. #### Why 174 hours per month? **Answer:** Chinese rules commonly use 21.75 paid working days per month, which times 8 hours gives 174. Some companies use 168 or a different convention, so match your payroll policy. #### Does it include the employee share? **Answer:** No. Employee deductions come out of gross pay and are not an extra employer cost. Only the employer share and housing fund are added here. #### Does the plant total include bonuses? **Answer:** No. Add year-end bonus, allowances and any severance accrual separately, or fold them into the base salary field as an average monthly figure. ## Search terms china labor cost calculator, employer social insurance china calculator, housing fund employer contribution, china factory labor cost per worker, china overtime pay calculator, china manufacturing wage cost, labor cost per hour china, standard cost labor rate china --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json