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.
|Minimum Monthly Wage Standard(s) (RMB)||Minimum Monthly Wage Standard(s) (RMB)||Minimum Part-Time Hourly Wage Standard(s) (RMB)||Effective Date (2013)|
|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|
|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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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:
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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