One of the main drivers of this was the abundant availability of cheap labor, propelling the country forward. An HR Manager with 6+ years experience salary of 50k US$, and similar experience in sales/marketing salary range of 38k to 80k US$. Many of the mid-level positions that expats used to be hired for can now be filled at lower cost and more effectively by local staff. The law provides for a 40- to 44-hour workweek. 1,260 (US$1455) per month in 12 payments, 1,080 (US$1277) per month in 14 payments. Show sources information [1] Meanwhile, other countries may have a national rate which often is superseded by state, provincial, cantonal, county and city minimum wage rates. 2. Labor > Salaries and benefits > Minimum wage: Countries Compared None; the mining, construction, security and agricultural sectors set basic levels of pay through collective bargaining. This is interestingly a decrease from the levels they quoted in 2016 and 2017 (when China was the second highest). FOCUS is the media outlet of China-Britain Business Council, providing up to date, informative and educational information on the China business landscape, To contact the editor of FOCUS with any article contributions, questions or suggestions please contact us here, This website uses cookies to improve your experience. (June 2022) This article's factual accuracy may be compromised due to out-of-date information. China Minimum Wage - World Minimum Wage Rates 2023 China. Minimum wages You only have access to basic statistics. A Guide to the China Tax System & Compliance for Foreign Companies 2023, Detailed FESCO in China 2023: Empowering Businesses with HR Solutions. Subscribing grants you this, plus free access to our articles and magazines. China-Britain Business Council FOCUS is created and produced by. Wages in China have experienced significant growth and transformation in recent years, reflecting the countrys expanding economy and its increasing integration into the global market. Due to the lack of data throughout China, our foreigner salary table only includes popular jobs among foreigners in the T1 cities: Shanghai, Beijing, Shenzhen, and Guangzhou. None; however, the law requires all employers, including non-unionized ones, to pay minimum wages agreed to in collective bargaining agreements; almost all workers are covered under such arrangements. For a delay of less than one month, compensation equal to 20 per cent of a worker's wage must be paid to the worker; for a delay of less than three months, compensation equal to 50 per cent of . Minimum Wage in Taiwan (China) [2023 Guide] - Horizons It has transitioned from being primarily known as a low-cost manufacturing hub to a more mature economy with a focus on high-tech manufacturing and service industries. Companies are suggested to pay attention to announcements from the local government. China does not set on minimum wage for the entire nation. 1. An Overview of the Minimum Wages in China in 2021 | HROne Shanghai continues to have the highest minimum wage in China, at RMB 2,480 (US$358) per month, followed by Shenzhen . Chart. Beijing is the latest to adjust its minimum wage, with the capital city increasing its base by 80 yuan (US$11) to 2,200 yuan (US$311) per month from July 1 following last year's increase of 120 . Wages in China are a primary concern and appeal for many foreign nationals and foreign companies alike. Few regions, however, reach this target, and data for 2022 (here) shows that most cities have minimums of around 25% of the actual wage, and as low as 20% in the larger cities. Suzhou - 2,280 / 22. 725 (US$857) per month, or 4.30 (US$5.09) per hour. When foreign companies start recruiting in China, salary considerations become crucial. We will examine the differences between local and expat wages, as well as the factors that influence salary levels in different industries. Currently, the highest minimum wages are in parts of Guangdong, Jiangsu, and Zhejiang provinces, which have all surpassed the RMB 2,000 (US$289) mark, as well as in the municipalities of Beijing, Shanghai, Shenzhen, and Tianjin. When comparing locations for foreign investment into China, minimum wages are a helpful barometer to gauge labor costs across different regions. In, MOHRSS. [24], Eurostat calculates the monthly rate for Ireland as (hourly rate x 39 hours x 52 weeks) / 12 months [112]. Set by the government by location, age and skill level; the lowest agricultural minimum wage for unskilled employees was, $A1.30 per hour for local businesses and companies, while the minimum wage for overseas-funded projects is $A3.00 an hour. The maximum rate of minimum wage for employees was 4.42 IDR Million/Month and minimum was 1.68 IDR Million/Month. Other cities such as Chongqing and Kunming have a lower average of just over 8000 RMB. Please contact the firm for assistance in China at china@dezshira.com. 2,508.24 (US$2966) per month, 14.50 (US$17.15) per hour for unskilled workers over 18; increased by 20% for a skilled employee; decreased by 20% to 25% in the case of an adolescent worker. The monthly minimum wage standard applies to full-time employees while the hourly minimum wage standard applies to non-fulltime employees, such as part-time and temporary employees. Beijing - 2,320 / 25.3. As Chinas economy moves up the value chain and makes the transition to innovation and services, most workers employed by foreign-invested enterprises already earn above the minimum wage. The firm assists foreign investors throughout Asia from officesacross the world. Our free webinars are packed full of useful information for doing business in China. That 3.1% increase was the biggest since fiscal 2002, when Japan started measuring the minimum wage and applying an . In 2022, Shenzhen and Henan raised their minimum wage standards from January 1, while Chongqing, Hunan, Sichuan, and Fujian raised their minimum wage standards from April 1. Profit from the additional features of your individual account. These are the primary concern of any foreign company operating in China, both while preparing for company registration and during operation. Shanghai - 2,590 / 23. Business Solutions including all features. As of July 6, 2023, Shanghai has the highest monthly minimum wage among 31 provinces (RMB 2,690/US$370 per month), and Beijing . What is the Minimum Wage in Japan? - VOYAPON The legal workweek is 40 hours, except for work in the agricultural sector. Monthly minimum wage in China 2023, by region; Minimum wage per . We highlight the essential legal changes that took place in May 2023 that you should pay attention to across the key states in China! The Guiding Opinions of the Ministry of Human Resources and Social Security and the Ministry of Finance on Adjusting the Criteria for Unemployment Insurance Benefits (Ren She Bu Fa [2017] No.71) stipulates that: With the development of the society and economy, all provinces shall, on the premise of ensuring a sustainable fund, appropriately improve the level of unemployment security step by step, to improve the unemployment insurance benefit criteria to 90 percent of the local minimum wage standard. [1][2], "A Complete Guide to 2016 Minimum Wage Levels Across China", "A Complete Guide to 2015 Minimum Wage Levels Across China", "China promises rise in minimum wage to close income gap", "Minimum Wages in China 2021: A Complete Guide", China Minimum Wage by Region 2018 - WageIndicator.org, "Minimum wage increases to improve welfare in China", https://en.wikipedia.org/w/index.php?title=Minimum_wage_in_China&oldid=1149142312, This page was last edited on 10 April 2023, at 12:28. Also excluded from calculations are regulated paid days off, including public holidays, sick pay, annual leave and social insurance contributions paid by the employer. According to Article 58 of the Labor Contract Law, during the period in which a dispatched worker is not assigned any work duties, the labor dispatch agency shall pay the worker remuneration on a monthly basis pursuant to the local minimum wage standard. The law does not establish a specific number of hours as constituting a full workweek, but most workweeks are 36, 38 or 40 hours long. Yet, when other factors like productivity, infrastructure, transportation costs, and access to a massive domestic market are considered China may still emerge as themore cost-efficient optioncompared to countries with lower statutory labor costs. China: average salary of urban employees by region 2021 | Statista It should be noted that theminimumwageis just the basicwagethat employers must pay their employees, and excludes overtime pay, allowances for night shifts, summer high temperatures and special working environment allowance, and subsidies for meals, transportation and housing. For more details, review our Privacy Policy. The main source for workweek data is: The percentage was calculated by dividing the minimum wage (PPP) by the GDP per capita (PPP) from 2018 obtained from the World Bank's, Annual wages were calculated by multiplying monthly wages by 12, weekly wages by 52, daily wages by 5x52 and hourly wages by Wx52, where W is the legal maximum (or the practical, if lower) workweek length in hours. The authorities increased the minimum wage from NT$ 25,250 to NT $ 26,400 in January 2023. Note: these figures do not take into account deductions, such as pensions or social insurance. China Minimum Wage: Key Rules & Regulations (7) of 2000 AD, Article 68, "Departamento De Analisis De Productividad Y Salario", "TuSalario.org/Paraguay Salario mnimo", "Gobierno subi a S/ 1,025 el salario mnimo", "Philippine workers seek hike in minimum wage amid inflation", "Paca minimalna w gr. 436 HengFeng RoadSuite 1804 Greentech TowerShanghai 200070, China, Company setupRep. The change of the minimum wage means the adjustment of the housing fund contribution base in the following months. Facts and statistics about China China is a country located in the Eastern Asia region with a population of 1,277,558,000 and an average life span of 71.4 years. When comparing locations for foreign investment into China, minimum wages are a helpful barometer to gauge labour costs across different regions. Average annual salary increase A Guide to Minimum Wages in China in 2020 | Amcham Use Ask Statista Research Service. Article 35 and Article 36 of the Regulations on Work-Related Injury Insurance stipulates that where a worker who sustained a work injury is certified grade 1 to grade 6 disability, he/she shall enjoy corresponding benefits, such as a one-off disability subsidy and monthly disability allowance covered by the work-related injury insurance fund in accordance with the disability grading, among other factors. The Guangdong provincial government announced that it would maintain 2015 minimum wage levels in 2016 and 2017, and the minimum wage growth rate in Shanghai has decreased from 12.3 in 2015 to 8.4 percent in 2016. Gini index: inequality of income distribution in China 2004-2021, Average salary of an employee in urban China 2021, by region, Minimum wage per hour in China 2023, by region, To download this statistic in XLS format you need a Statista Account, To download this statistic in PNG format you need a Statista Account, To download this statistic in PDF format you need a Statista Account. The standard workweek was 40 hours in nonagricultural and service industries and 42.5 hours in the agricultural sector. 1992-2023 Dezan Shira & Associates All Rights Reserved. Varies by occupation, with the lowest set to. Labor contracts: It is important for employers to establish clear and legally compliant labor contracts with their employees. Business Solutions including all features. Minimum wage rates in China undergo an annual review and adjustment, typically taking place during the first half of the year. Average Salary in China 2023 - The Complete Guide Companies may decide to suspend their businesses or production in the wake of internal or external difficulties, such as during lockdowns caused by the pandemic. Summary of standard minimum wages in China. Guizhou province stands out as the region carrying the most significant hike of minimum wage levels in 2016, 55 percent. Instead, each province, city or other administrative units sets its own minimum wage according to its local economic conditions. Minimum Wages in Vietnam remained unchanged at 4680 VND Thousand/Month in 2023 from 4680 VND Thousand/Month in 2022. Although wage disparity is an issue in China, this gap has gotten slightly smaller during the last decade. China Average Yearly Wages 2023 Data - 2024 Forecast - TRADING ECONOMICS In, MOHRSS. China increases minimum wage rates China Wages 2023 | Minimum & Average | Take-profit.org To be noted, theminimumwageis just the basicwagethat employers must pay their employees, which excludes overtime pay, night shift allowance, summer high temperature allowance, the special working environment allowance, and subsidies for meals, transportation, and housing. Full access. (January 2, 2023). 1,934.40 (US$2288) per month, and 11.16 (US$13.2) per hour for persons 21 and older; between 3080% (as low as 3.35 per hour) of this amount for persons aged 1520. Historical Data (CNY/Month) by years Data Period Date Employer social insurance and housing fund obligations add around an additional 37% to employers labour costs on top of the employees gross salary. The minimum wage in China varies by location and industry. The number of provinces and cities that adjusted their minimum wage standards in 2020 declined drastically compared to the previous two years. For example, 33 states in the United States have higher minimum wages than the federal rate (plus military rates on federal bases) on top of this an additional 42 city-level subdivisions having different minimum wage rates and 53 countries. Work hours provisions: The labor code sets limits on work hours to protect employees well-being. [Online]. Read more here, China-Britain Business Council 2020 All rights reserved. A version of this article was first published by China Briefing, which is produced byDezan Shira& Associates. Each province, municipality, or region sets its own minimum wage in accordance with its own local conditions. Barbados The minimum wage for 2021 is set at 1.1 million kip (US$116) a month. Some countries may have a very complicated minimum wage system; for example, India has more than 1202 minimum wage rates for different types of industries and skill levels. Laos has yet to implement an increase in its minimum wage since 2018. In China, average wage refers to average wage in money terms per person during a certain period of time for staff and workers in enterprises, institutions, and government agencies, which reflects the general level of wage income during a certain period of time. Although the rate of increase has lessened recently, they have risen dramatically over the past decade. Minimum wages under such policies increased by an average 12.6 percent rate between 2008-2012. One yuan equals approximately 0.15 U.S. dollars and 0.14 euros (as of January 2023). 3. According to the European Labor Force Survey, in 2011 the average full-time employee's workweek was 39.9 hours for women and 41.1 hours for men. See our separate article for more details on this. As the minimum wage rises, minimum standards for other employee benefits, such as overtime pay, other allowances, and subsidies, increase in kind. For public sector workers, minimum wage was, None; for the public sector the minimum wage is. The Average Salary in China - much more than the minimum Foreigner Wages in China Expat Wages in China Conclusion In recent years, China has experienced significant economic growth, with wages rising across various industries. However, it does not include additional payments such as overtime pay, night shift allowance, special working environment allowance, and subsidies for meals, transportation, and housing. Here's how it may affect you", "Ministre de la Scurit Sociale du Grand-Duch de Luxembourg Paramtres sociaux", "Social minimum wage and indexation of salaries Entreprises // Luxembourg", "Lawmakers pass minimum wage bill, excluding maids, disabled", "Malawi increase minimum wage rate over 100 percent | Malawi Nyasa Times Malawi breaking news in Malawi", "Minimum Wage 2023: What's the Deadline for Employers in Malaysia? Currently, you are using a shared account. Then you can access your favorite statistics via the star in the header. Presently, the minimum wage in Nepal is NPR 15,000 per month, which roughly translates to USD 114. New Minimum Wage. $99 USD $79 USD / Month * in the first 12 months Professional Account. From June 2015 and June 2016, 22 regions made changes to their minimum wage levels. Business Solutions including all features. You have successfully joined our subscriber list. This trend of increasing wages continues today, although rising at a slower pace that lags behind the GDP growth of the country. China: hourly minimum wage by region 2023 The minimum wages listed refer to a gross amount, that is before deduction of taxes and social security contributions, which vary from one country to another. Local governments in China are generally required to update their minimum wages every few years but have the flexibility to adjust wages according to local conditions. As China's economy moves up the value chain and transitions to innovation and services, most workers employed by foreign-invested enterprises earn above the minimum wage. The cities given as examples are therefore subject to change. Expat salaries tend to increase with experience but also with experience working in China and the ability to speak Mandarin Chinese. Retirement: Employers must comply with retirement-related regulations, such as providing employees with access to retirement benefits or contributing to social security programs on their behalf. However, the growth rate of minimum wage levels decreased in 2016, reflecting the Chinese governments effort to reduce pressure on enterprises resulting from the uneven growth between labor costs and production rates.[1][2][3]. Collective bargaining agreements, however, may stipulate lower maximums, and in 2012 they stipulated on average 37.7 hours per week. Dezan Shira & Associates has offices in Vietnam, Indonesia, Singapore, United States, Germany, Italy, India, and Russia, in addition to our trade research facilities along the Belt & Road Initiative. Most provinces set different classes of minimum wage levels for different areas depending on the given regions level of development and cost of living. However, while China is still among the most unequal countries in the world in terms of income inequality, it has made some progress over the past decade. To use individual functions (e.g., mark statistics as favourites, set Vietnam Minimum Wages 2023 Data - 2024 Forecast - TRADING ECONOMICS The monthly minimumwageis for full-time employment while the hourlyminimumwageis for part-time employment. As soon as this statistic is updated, you will immediately be notified via e-mail. 3. As of 21 Feb, 2023, Shanghai has the highest monthly minimum wage in China's mainland, at 2,590 RMB per month, while Beijing has the highest hourly wage in China's mainland, at 25.3 RMB per hour. [23] For those under 16, this is 36.8% or A$7.87 (US$5.25) per hour; $A9.83 (US$6.56) with the casual loading. Directly accessible data for 170 industries from 150+ countries The value given is the average of the average women and men workweek. Yet, it is much harder to quote an average salary for expat workers in China. . Guangzhou Raises Minimum Wage to RMB2,300 Per Month For skilled workers in the agricultural sector, the minimum salary was 767 (US$1,040) without accommodation and food. Accessed July 08, 2023. https://www.statista.com/statistics/233886/minimum-wage-per-hour-in-china-by-city-and-province/, MOHRSS. For example, workers in Shanghai made an average of RMB 10,338 (1,222) per month through 2020 nearly four times the local minimum wage. Provinces are divided into different wage districts: Guizhou, for instance, is divided up into Class A, B, and C, which each have their own minimum monthly and hourly wage. How Harrods leveraged the digital revolution in China, China Consumer 2023: How British Brands Can Succeed in China, Chinas small business VAT exemptions in 2023. Labor costs will form a major part of many companies expenditures, and understanding the laws and market realities as early as possible is well-advised. Actual salaries (sourced here) have a much higher variance than the minimum levels. 170 (US$224) per month for workers between 35 and 65 years of age; 130 (US$150) for workers under 35 years of age. We offer a guide to minimum wages in Mainland China and discuss how labor costs are affected by changes to the minimum wage levels. Instead, the task of setting minimum wages is delegated to the local governments. 4. January 2, 2023. Articles published on FOCUS are those of the author and do not necessarily represent the views of the China-Britain Business Council.