Chinas Ministry of Human Resources and Social Security released the Minimum Wage Standards for All Regions on April 26, 2020. The figures go up to March 31, 2020 and show that, broadly, minimum wage levels have remained stable.
Until March 31, 2020, only three regions have increased their minimum wage standards:
Fujian province
Qinghai province
Guangxi Zhuang autonomous region
Fujian province puts its increases into force on January 1, 2020. They have reduced the number of classes to four. The current monthly and hourly per class, are:
Class A: CNY 1,800 and CNY 18.5
Class B: CNY 1,720 and CNY 18
Class C: CNY 1,570 and CNY 16.5
Class D: CNY 1,420 and CNY 15
Qinghai province also put into force its increase on January 1, 2020. In this case, only the monthly minimum wage was raised, with a 13.3% increase to CNY 1,700.
The increases Guangxi Zhuang autonomous region came into effect on March 1, 2020. The monthly minimum wage was raised by CNY 130 for all classes A to C and the hourly rate was raised by between 9.3% and 12%.
Stakeholders should note that Beijings Municipal Human Resources and Social Security Board issued a notice of suspension on the adjustment to minimum wage levels on July 14, 2020. A similar announcement was made by Tianjin on March 9. These are being issued in response to the COVID-19 pandemic and its economic impact.
The latest minimum wage figures show that six provinces and cities now have Class A levels above CNY 2,000. They are:
Shanghai CNY 2,480
Beijing CNY 2,200
Guangdong Guangzhou CNY 2,100 & Shenzhen CNY 2,200
Tianjin CNY 2,050
Jiangsu CNY 2,020 (Changzhou, Nantong, Nanjing, Suzhou, Taizhou, Wuxi, Yangzhou and Zhenjiang)
Zhejiang CNY 2,010 (Hangzhou, Ningbo and Wenzhou)
When looking at hourly minimum wages, Beijing ranks first with CNY 24, although Shanghai, Tianjin and Guangdong also rose above CNY 20 per hour.
The legal minimum wage level is the lowest amount an employer can pay a worker to carrying out their duties within legal standard working hours, or specific working hours in accordance with their employment contract. It comes in two forms:
Monthly minimum wage for full-time employees
Hourly minimum wage for part-time and temporary employees
SGS Social Responsibility
SGS has been involved in social accountability since its inception and has been offering tailored audit services since 1996. Supported by a network of highly trained auditors, with extensive experience of reviewing operation with particular emphasis on factory capability, labor standards, environmental compliance and business integrity, SGS supports businesses with their responsible purchasing policies. Learn more about SGSs Social Responsibility. [www.sgs.com/en/sustainability]
SGS SafeGuardS keep you up to date with the latest news and developments in the consumer goods industry. Read the full China Minimum Wage Updates in the First Half of 2020 SafeGuardS. [www.sgs.com/en/news/2020/08/safeguards-12620-china-minimum-wage-updates-in-the-first-half-of-2020]
Subscribe here, www.sgs.com/subscribesg, to receive SGS SafeGuardS direct to your inbox.
For further information contact:
Calla Huang
Marketing Officer
Email: crs.media@sgs.com
Website: www.sgs.com/cgnr
LinkedIn: sgs-consumer-goods-&-retail
About SGS
SGS is the worlds leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 89,000 employees, SGS operates a network of over 2,600 offices and laboratories around the world.