It is the lowest salary threshold paid to an employee by an employer, as required by law. The minimum wage to pay in China is different between different provinces.
Factors to consider setting up your company
If you have in mind to choose the most favorable city for your business in Chine, there are 3 factors to consider:
- Best place according to your industry, where your clients are located.
- Best place according to labor cost.
- Best place with skilled workers or management talents.
The trap to avoid:
- In some cities, local governments provide a lot of financially attractive subsides.
- Never forget the hidden costs like difficulty to attract managers or staff in places in the middle of nowhere !
What is not included in minimum wage?
Are not included additional payments provided by the employer:
- overtime
- night shift allowances.
- transportation allowance.
- Bonuses.
- In Shanghai, it excludes social insurance premiums and housing fund contributions.
2 different kinds of minimum wages
- Monthly minimum wage, for full-time employees.
- Hourly minimum wage, for part-time employees or temporary workers.
Different minimum wages in China
- Minimum wages are determined by local governments according to their local specific conditions, such as living costs, employment status.
- Local governments update the local minimum wage every two years.
Minimum wage in China’s different cities
Data are in local currency RMB. Updated to June 2022.
- Shanghai: monthly 2,590 / hourly 23.0
- Shenzhen: monthly 2,360 / hourly 22.2
- Beijing: monthly 2,320 / hourly 25.3
- Guangzhou: monthly 2,300 / hourly 22.0
- Hangzhou: monthly 2,280 / hourly 22.O
- Suzhou: monthly 2,280 / hourly 22.0