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Minimum wages in China continue to rise
Despite the increase in minimum wages, China remains an attractive option for foreign investment due to factors like productivity, infrastructure, and access to a large domestic market.
As of February 19, 2024, Shanghai has the highest monthly minimum wage among 31 provinces at RMB 2,690 (US$370) per month, while Beijing has the highest hourly minimum wage at RMB 26.4 (US$3.7) per hour.
- Minimum wages in China are on the rise, with different levels set for different regions based on factors like cost of living and economic development.
- The minimum wage standards in China impact various aspects, including housing fund contributions, wages during probation and sick leave, severance payments, and more.
- Despite the increase in minimum wages, China remains an attractive option for foreign investment due to factors like productivity, infrastructure, and access to a large domestic market.
21 regions including Anhui, Beijing, Chongqing, Fujian, Gansu, Guangdong (including Shenzhen), Hainan, Hebei, Henan, Hubei, Jiangsu, Jiangxi, Liaoning, Ningxia, Shaanxi, Shandong, Shanghai, Sichuan, Tianjin, and Zhejiang have exceeded the monthly minimum wage standard of RMB 2,000 (US$275).
At the lower end of the wage spectrum, Jilin and Xinjiang’s minimum wage level (RMB 1,540 per month) is slightly higher than that in Heilongjiang (RMB 1,450 per month).
In 2023, the minimum wage standards have been raised in 14 provinces, including Anhui, Beijing, Guangxi, Guizhou, Gansu, Hainan, Hebei, Qinghai, Shaanxi, Shandong, Shanghai, Shanxi, Tianjin, and Yunnan.
The new minimum wage standards for Hennan, Jiangsu, and Zhejiang took effect on January 1, 2024. Hubei’s new minimum wage standards will be effective from February 1, 2024. Ningxia’s new minimum wage standard will take effect from March 1, 2024, and Jiangxi’s new minimum wage standard will take effect from April 1, 2024. Liaoning’s new minimum wage standards will come into effect on May 1, 2024.
What is the minimum wage in China?
According to China’s Provisions on Minimum Wage, the legal minimum wage refers to the minimum labor remunerations that shall be paid by the employers to the employees under the precondition that the employee has provided normal labor within the promissory working hours or within the working hours that is prescribed in the labor contracts.
The minimum wage standards are determined by provincial governments by taking into consideration factors, such as the minimum living costs of local employees and their dependents, the urban residents’ consumption price index, the social insurance premiums, and the housing funds paid by the employees themselves, the average salary of the employees, the level of local economic development, the local employment status, etc.
Source : Minimum Wages in China: A Complete Guide (china-briefing.com)
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