Chapter 6. Under the direction of the Department of Labour Administration of the State Council, minimum wage rates are set by the Department of Labour Administration under the People`s Government of a province, autonomous region or municipality directly subordinate to the central Government, in consultation with the trade union and the Association of Enterprise Directors at the appropriate level. For example, workers in Shanghai earned an average of 10,338 RMB ($1,632) per month in 2020, nearly four times the local minimum wage. In accordance with the Labour Code, the State must introduce a guaranteed minimum wage system. The minimum wage may be set by provincial, regional or municipal governments and shall be communicated to the State Council for registration. Labour law stipulates that wages paid to workers through the employment of units must not be below local minimum wage standards. Hello In the current income tax system, the threshold for paying taxes is 5,000 RMB, although all other types of deductions are not taken into account. The minimum wage in all Länder is still below this figure. In this sense, minimum wages are excluded for tax purposes. The minimum wage standard does not include bonuses, overtime pay and social security contributions paid by employers, as well as non-monetary income. However, this figure includes social security contributions paid by employees. Therefore, we cannot say that these are net salaries. At the lower end of the salary scale, the minimum wage level in Liaoning (1,420 RMB / 224 USD per month) is slightly higher than in Anhui (1,340 RMB / 212 USD per month).
Current minimum wage rates can be found in the Minimum Wage section. The minimum contribution base of the housing fund corresponds to local minimum wage standards in many cities. The change in the minimum wage entails an adjustment of the contribution base to the housing fund in the following months. The upper limit of the contribution base for the housing fund is typically three times the local average monthly salary of employees in the previous year, and the lower limit of the contribution base for the housing fund is generally in line with the local minimum wage standard. With reference to the regulations of Zhejiang, Hubei and Shaanxi provinces, the employer is required to pay alimony equal to 70~80% of the local minimum wage. In 2018, 15 of the 31 regions in mainland China increased the minimum wage. 20 of the regions increased the minimum wage in 2017. Currently, Shanghai has the highest monthly minimum wage among 31 provinces (2,590 RMB / 400 USD per month) and Beijing has the highest hourly minimum wage (25.3 RMB / 3.9 USD per hour). Eight regions – Shanghai, Guangdong, Beijing, Tianjin, Jiangsu, Shandong, Hubei and Zhejiang – exceeded RMB 2,000 (USD 308) in their monthly minimum wage standards. The minimum wage is defined as the minimum remuneration prescribed by the employer by law, provided that the employees have performed normal work during the statutory working hours or the working hours agreed in the employment contract. The minimum wage does not include overtime pay, special allowances paid due to a specific environment or working condition (e.g. shift work, mine work, high-altitude work, etc.), statutory benefits, travel expenses, or protective clothing or equipment.
Different cities have different standards for sickness benefits. But a universal rule is that sickness benefit should not be less than 80% of the local minimum wage, according to statements on several issues related to the implementation of the Labour Law of the People`s Republic of China (Lao Bu Fa [1995] No. 309). China`s minimum wage requirements for 2020 are detailed for many of the following key areas: * Some provinces set minimum wage standards at the district or district level. The cities listed in the table are examples and do not claim to be exhaustive. Minimum wages in several Chinese provinces and cities have risen at different times in 2021, relevant governments have announced. Chapter 22. The Department of Labour Administration, which reports to the people`s governments at various levels, is responsible for monitoring and monitoring the implementation of the minimum wage. The minimum wage can have an impact on total labour costs. Companies that want to remain competitive can raise workers` wages if the minimum wage catches up with their current wage, so they still have an advantage over minimum wage workers. As there is no minimum wage in China, there is no mandatory minimum wage for workers in China. Wage rates must be agreed directly with the employer through collective bargaining or other means of negotiating a fair living wage.
