Shenzhen, Beijing Raise Minimum Wage Standards

January 12, 2012 Posted by China Briefing Reading Time: 4 minutes

Jan. 12 – On December 31, 2011, both Shenzhen and Beijing announced their new minimum wage standards for 2012. Following the adjustment, Shenzhen’s minimum wage standard will reach RMB1,500, the highest in the whole country.

Shenzhen
According to the “Circular on Minimum Wage Standards Adjustment in Shenzhen (shenrenshegui [2011] No.19),” starting on February 1, 2012, Shenzhen’s minimum wage standards will be raised as follows:

Compared to last year, when the raised minimum wage standards were not implemented until April 1, 2011, this year’s new standards will take effect two months earlier, immediately after the Chinese New Year. This sends a message to employers in the city so that they can plan their annual budget in advance. Those who underpay their employees may face inspection by local labor supervision departments.

Beijing
In accordance with the “Circular on 2012 Minimum Wage Standards Adjustment in Beijing (jingrenshelaofa [2011] No.375),” starting on January 1, 2012, Beijing’s minimum wage standards have already been lifted as follows:

For full-time workers, the components of the aforementioned minimum wage shall not include:

Compensation for lunch break shifts, night shifts and working under special conditions
Compensation for working overtime
Social insurance premiums and housing fund contributions
Other income that shall not be counted as part of the minimum wage according to national and local regulations

For part-time workers, the components of the aforementioned minimum wage may include premium payments for pension, medical insurance and unemployment insurance.

For employers paying for piecework, the piece rates shall be determined through equal negotiations. An employee that works regularly within official working hours shall receive a wage of no less than the minimum wage standards.

Dezan Shira & Associates is a boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in China, Hong Kong, India, Singapore and Vietnam. For further information or professional advice, please email china@dezshira.com.

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