TEL:86-755-82143422

Home > Beijing Business Services > Minimum wages have been raised in China.

Minimum wages have been raised in China.

Updated:2020-1-9 17:00:02    Source:www.tannet-group.comViews:30

Last year, seven regions, Chongqing, Shaanxi, Shanghai, Beijing, Hebei, Fujian, and Qinghai, rise their minimum monthly and hourly wage.

In past two years, most of regions of mainland China increased their minimum wages. Local government are required to interfere local minimum wages setting according to local consuming ability.


China’s minimum wage: Understanding regional variation

Guadong, Jiangsu, Zhejiang, Beijing, Shanghai, Shenzhen, and Tianjin are the cities that are ranked the highest minimum wages around the counties, around RMB 2,000.
In certain rural areas of Liaoning, Human, and Anhui are the cities that are ranked as the lowest minimum wage around the counties, around RMB 1120.

China has made some progress over past decade to improve the income inequality among the cities.

Impact on China’s labor costs
Minimum wages do not show real story of labor costs in China.

As China’s economy move to more valuable industries, most workers employed earn above the minimum wages. For example, employee’s average salary in Shanghai is RMB 9,723 per month, over four times over the local minimum wages.

One reason causes rapidly rising wages is country’s labor pool shrinking. In 2008, China’s employed population declined for the first time ever, falling by 540,000 for a total of 776 million.

Thus, for foreign investors, rising wages are an unavoidable feature of doing business in China. However, when investors take productivity, infrastructure, transportation costs, and access to a massive domestic market into account, China is still as a more cost-efficient option compared to other counties with low labor costs.

Contact Us
If you have further inquiries, please do not hesitate to contact Tannet at any time.
Tel: 86-10-58694459
    86-13717945838
Email: beijing.tannet@qq.com 
Web: www.beijing-company.net             
Add: Rm1902, Bldg 17, Jianwai SOHO West, No. 39 Dongsanhuan Rd M, Chaoyang Dist., Beijing.

Previous:China-Pakistan FTA Phase-II: Reduced Tariffs, New Safeguard Measures     Next:China’s State Council Approves 24 New Cross-Border E-Commerce Zones