Gross salary − social insurance & housing fund − IIT = what actually lands in your bank account.
How take-home pay is calculated
Social insurance = Gross × (8% + 2% + 0.5% + fund%)
Taxable = Gross − Social insurance − 5,000 − Deductions
IIT = Taxable × rate − quick deduction
Take-home = Gross − Social insurance − IIT
For detailed bracket tables and examples, see the income tax calculator.
What is take-home (net) salary?
Take-home salary, also called net salary or 到手工资, is the amount actually deposited into your bank account each month after all deductions. It is lower than your gross (pre-tax) salary because of three deductions: social insurance & housing fund (personal portion), individual income tax (IIT), and sometimes union fees or other small items.
Understanding the deductions
- Pension (养老保险): 8% of your salary. Goes into your personal pension account and the public pool. You can withdraw the personal portion at retirement.
- Medical insurance (医疗保险): 2% of your salary. Goes to your medical insurance card for outpatient and pharmacy expenses.
- Unemployment insurance (失业保险): 0.5% of your salary. Provides benefits if you lose your job involuntarily.
- Housing fund (住房公积金): 5–12% of your salary (capped). Can be withdrawn for home purchase, rent, or at retirement. Both you and your employer contribute the same percentage.
- Individual income tax (个人所得税): Calculated on taxable income after the ¥5,000 threshold and special additional deductions.
Step-by-step: estimate your take-home pay
- Enter your gross monthly salary. The amount before any deductions.
- Confirm the social insurance base. Some cities cap or floor the base. Our calculator uses your full salary as the base by default.
- Enter special additional deductions (optional). Children's education, rent, elderly care, etc. These reduce your taxable income.
- Click Calculate. You see social insurance, IIT and the final take-home amount.
How to increase your take-home pay
- Claim all special additional deductions. Many people forget to claim rent, elderly care or children's education deductions, which can save thousands in tax per year.
- Understand your housing fund. A higher fund rate reduces take-home now but the money is yours (with employer match). For home buyers, a higher fund rate is beneficial.
- Optimize bonus structure. Year-end bonuses can be taxed separately (until 2027). If your salary is high, the separate method may reduce total tax.
- Negotiate benefits. Some benefits like meal allowances, transportation subsidies or employer-paid insurance are not taxable and effectively increase your compensation.
Typical take-home ratios
As a rough rule of thumb, take-home pay is about 75–85% of gross salary for most workers. The ratio is higher at lower salaries (below ¥10,000, where tax is minimal) and lower at higher salaries (above ¥30,000, where the 20%+ tax bracket kicks in). Use the calculator above for a precise number for your situation.
FAQ
What are the personal social insurance rates?
Typical personal rates: pension 8%, medical 2%, unemployment 0.5%, housing fund 5–12% (city-dependent). Total ≈ 15.5%–22.5% of gross salary. Employers pay a much larger share on top.
Why is my take-home higher than this result?
Possible reasons: your city's social insurance base is capped or floored (not your full salary), housing fund is lower, or annual bonus is taxed separately. This calculator uses your full salary as the base.
What is the typical take-home ratio?
Usually 75–85% of gross. Higher at low salaries (minimal tax), lower at high salaries (20%+ bracket). Use the calculator for precision.
How can I increase take-home pay?
Claim all special deductions, understand housing fund options, optimize bonus tax, negotiate non-taxable benefits.
Is housing fund deducted from take-home?
Yes, your 5–12% contribution is deducted, but it goes to your own fund account with an equal employer match. Withdrawable for home, rent or retirement.