SGS publishes an overview of Chinese minimum wage standards in 2020, clearly showing the impact of the COVID-19 pandemic.
In 2018, fifteen provinces and cities raised their minimum wage standards. In 2019, seven regions raised their minimum wage standards. In 2020, only three provinces – Fujian Province, Qinghai Province and the Guangxi Zhuang Autonomous Region – increased their minimum wage standards and each of these had made the changes before March 1, 2020.
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
This represents a dramatic shift in the trend towards increasing minimum wage standards. Shanghai City has, until 2020, raised its minimum wages levels every year for the preceding ten years. They announced on June 19, however, that no adjustment would take place in 2020 and therefore the monthly minimum wage standard would remain at CNY 2,480.
Notices of suspension were also issued by Beijing City, Tianjin City and Shandong Province.
According to the regulation of the Ministry of Human Resources and Social Security, the minimum wage standard should be adjusted every two or three years. By December 1, 2020, however, a total of nine provinces and cities had not adjusted their minimum wage standard for over three years:
• Inner Mongolia
Shanghai remains the region with the highest monthly minimum wage in Class A (CNY 2,480) and Anhui is ranked last with CNY 1,550.
For an overview of Chinese minimum wages standards (monthly and hourly) and a comprehensive breakdown of the increases in Fujian Province, Qinghai Province and the Guangxi Zhuang Autonomous Region, view SGS’s SafeGuard ‘China Minimum Wage Updates in 2020’.
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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 2020 SafeGuardS. [www.sgs.com/en/news/2021/01/safeguards-00221-china-minimum-wage-updates-in-2020]
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