Shanghai to Raise Minimum Wage Levels and Social Benefits from April 1

March 31, 2010 Posted by China Briefing Reading Time: < 1 minute

SHANGHAI, Mar. 31 – The Shanghai municipal government is raising monthly minimum wage levels from RMB960 to RMB1,120 effective from April 1, 2010.

The Shanghai Municipal Human Resources and Social Security Bureau released a circular on March 28 adjusting the minimum wage standards in the city while also stipulating that social security fees, housing funds, overtime wages and allowances or subsidies for meals, transportation and housing for working in special work environments or conditions such as night shifts, high temperatures, or working underground should not be regarded as components of standard minimum wage.

In addition to raising the minimum wage level by 15 percent, the Shanghai government also accelerated plans to create subsidized housing, increased minimum workers compensation levels, and raised unemployment insurance. Around 150,000 affordable-housing apartments will be created under the scheme and more affordable changes will also be made in the area to employee benefits.

Unemployment insurance in Shanghai was raised to RMB555, RMB610 and RMB660 per month dependent on the recipients’ age and length of unemployment. For those injured on the job, the city increased the minimum mandatory worker compensation level to RMB3,210, RMB3,030, RMB2,800 and RMB2,670 respectively, dependent on the severity of the injury.