PRC Employment Law Newsflash (Vol 14 No.4)

I. LATEST MINIMUM WAGE STANDARDS INCREASED IN CERTAIN PROVINCES/CITIES

Various provinces and cities across China have increased their minimum wage standards ("MWS") for 2013. We set forth below a table of those new MWS, current as of the date of writing.1

When reviewing MWS, it is important to note that, if the announcement and the effective dates differ, the effective date always prevails. This means that, where the announcement date of a given MWS is later than its effective date, employers must make back-payments of the difference to their employees accordingly. Otherwise, if the employees complain to the labor supervisory authorities or initiate labor dispute arbitration (and subsequent civil litigation) claiming for such payments, the employers would risk incurring legal liabilities for failing to pay their employees on time or in full.

Province/City 2012   2013  
Minimum Monthly Wage Standard(s) (RMB) Minimum Monthly Wage Standard(s) (RMB) Minimum Part-Time Hourly Wage Standard(s) (RMB) Effective Date (2013)
Beijing 1260 1400 15.2 1 Jan
Shanghai 1450 1620 14 1 Apr
Tianjin 1310 1500 15 1 Apr
Heilongjiang 880, 840, 720, 700, 670, 620, 600 1160, 1050, 900, 850 11, 9, 8.5, 8 1 Dec (2012)
Hebei 1100, 1040, 960, 860 1320, 1260, 1150, 1040 13, 12, 11, 10 1 Dec (2012)
Henan 1080, 950, 820 1240, 1100, 960 11.7, 10.4, 9 1 Jan
Jiangxi 870, 800, 730, 670, 610 1230, 1150, 1070, 980, 900 12.3, 11.5, 10.7, 9.8, 9 1 Apr
Guangxi 1000, 870, 780, 690 1200, 1045, 936, 830 10.5, 9.5, 8.5, 7.5 7 Feb
Shanxi 1125, 1035, 945, 855 1290, 1190, 1090, 990 14, 13, 12, 11 1 Apr
Guizhou 930, 830, 740 1030, 950, 850 11, 10, 9 1 Jan
Gansu 980, 940, 900, 860 1200, 1140, 1080, 1020 12.7, 12.1, 11.4, 10.8 1 Apr
Ningxia 1100, 1020, 950 1300, 1220, 1150 12.5, 11.5, 10.5 1 May
Qinghai 920, 910, 900 1070, 1060, 1050 10.8, 10.7, 10.6 1 Dec (2012)
Shanxi 1000, 910, 850, 790 1150, 1050, 950, 870 11.5, 10.5, 9.5, 8.7 1 Jan
Shandong 1240, 1100, 950 1380, 1220, 1080 14.5, 12.5, 11 1 Mar
Yantai (Shandong) 1240, 1100 1380, 1220 14.5, 12.5 1 Mar
Zhejiang 1310, 1160, 1060, 950 1470, 1310, 1200, 1080 12, 10.7, 9.7, 8.7 1 Jan
Shenzhen 1500 1600 14.5 1 Mar
Guangdong 1300, 1100, 950, 850 1550, 1310, 1130, 1010 15, 12.5, 11.1, 10 1 May
Guangzhou (Guangdong) 1300 1550 15 1 May
Zhuhai (Guangdong) 1100 1310 12.5 1 May
Shantou (Guangdong) 950 1130 11.1 1 May
Zhanjiang (Guangdong) 850 1010 10 1 May

1. Certain jurisdictions implement more than one MWS among their cities or counties in order to reflect varying standards of living.This data is current up to 27 April 2013. As other provinces and cities have not adjusted or published their data for this year, they are not presented in the table. We are continually following up on the latest developments in other jurisdictions and will publish any updates as they occur.

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II. SHANGHAI SOCIAL INSURANCE CONTRIBUTION BASES ADJUSTED

On 25 March 2013, the Shanghai Municipal Human Resources & Social Security Bureau announced a new formula for the calculation of local average monthly wages for 2012.2 As the base for social security contributions is capped at 300% of the previous year's local average monthly wage, this base has been adjusted correspondingly. The table below sets forth the latest statutory social insurance contribution ratios and contribution bases:

latest statutory social insurance contribution ratios and contribution bases

2.The contribution bases and ratios for 2013 are calculated according to the local average monthly wages in 2012.

3. "Urban employee social insurance" is applicable to employees with urban household registrations, "social insurance for migrant workers without urban household registration" is applicable to employees from rural areas of other provinces or cities, and "social insurance for employees originally participating in township social insurance" is applicable to employees working for employers located in suburban areas of Shanghai (i.e., districts of Pudong, Fengxian, Nanhui (now merged as part of Pudong), Minhang, Songjiang, Jinshan, Qingpu, Jiading, Baoshan, as well as for employers located in parts of Chongming District), who participated in the township social insurance before July 2011.

4. Through mutual agreement following consultations between the employer and the employee, the urban employee social insurance contribution bases (RMB 2,815 to 14,076 per month) and ratios (basic pension insurance: 22% for the employer and 8% for the employee; work-related injury insurance: 0.5% for the employer; and basic medical insurance: 12% for the employer and 2% for the employee) may also apply to migrant workers without urban household registration. However, there is an exception: with respect to the contribution ratio of the basic medical insurance, the employer may still participate in medical insurance by opting for the ratio of 6% for the employer and 1% for the employee.

5. The urban employee social insurance bases and ratios may also apply to employees through mutual agreement following consultations between the employer and the employee.

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If you have any queries regarding PRC employment law matters, please contact Dr. Isabelle Wan at iwan@TransAsiaLawyers.com.

This newsflash was prepared by the employment team of TransAsia Lawyers. Managing Editor: Isabelle Wan; Contributing editors: Joonho Tan, Helen Sunderland, Mark Young, Katrina Ji, Yvonne Gao, Maureen Xu, Qin Anqi and John Chung.

 

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First uploaded on 27 April 2013

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