Shanghai Hikes Minimum Wage Levels, Takes Nation’s Top Spot from Shenzhen

Shanghai Hikes Minimum Wage Levels, Takes Nation’s Top Spot from ShenzhenShanghai’s Human Resource and Social Security Bureau released the “Notice on Adjusting Minimum Wage Levels in Shanghai (hurenshezongfa [2013] No.16, hereinafter referred to as ‘Notice’)” on March 29, which raises minimum wage levels in the city from April 1, 2013. Detailed information can be found below.

According to the Notice, the monthly minimum wage in Shanghai has been raised from RMB1,450 to RMB1,620 effective April 1, overtaking Shenzhen as the nation’s highest. At the same time, the city’s hourly minimum wage levels have been increased from RMB12.5 to RMB14.0, ranking fifth in the country after Beijing, Guangzhou, Tianjin and Shenzhen.

The Notice also provides that the following wages and benefits shall not be counted as part of the minimum wage:

  • Social insurance fees and housing fund contributions paid by individuals
  • Overtime working payments
  • Allowances for taking middle shifts or night shifts
  • Allowances for working under high-temperature, low-temperature, underground, poisonous or harmful environments
  • Meal allowance, commuting allowance, and housing allowance

Besides Shanghai, four other regions in the country have also raised their minimum wages on April 1.

Tianjin has increased its monthly minimum wage by 14.5 percent to RMB1,500, ranking fourth in the nation, meanwhile its hourly minimum wage has been raised from RMB13.1 to RMB15.0.

Jiangxi Province, which formerly held the lowest minimum wage levels in the nation, has increased its monthly minimum wages from RMB860 to RMB1,230 in Class “A” Districts; while Gansu Province and Shanxi Province have hiked their monthly minimum wages up to RMB1,200 and RMB1,290 in Class “A” Districts, respectively.

So far, 13 cities and provinces in the country have raised their minimum wage levels in 2013.

For professional assistance in South China contact Fabian Knopf at fabian.knopf@dezshira.com or visit www.dezshira.com

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