Shanghai has the highest monthly minimum wage in China at RMB 2,690, while Beijing has the highest hourly minimum wage at RMB 26.4. Minimum wages vary by region and are increasing.
Minimum Wage Trends in China
As of February 19, 2024, Shanghai has the highest monthly minimum wage among 31 provinces at RMB 2,690 (US$370) per month, while Beijing has the highest hourly minimum wage at RMB 26.4 (US$3.7) per hour. Minimum wages in China are on the rise, with different levels set for different regions based on factors like cost of living and economic development. The minimum wage standards impact various aspects, including housing fund contributions, wages during probation, sick leave, and severance payments.
Regional Variances in Minimum Wages
21 regions in China have exceeded the monthly minimum wage standard of RMB 2,000 (US$275), including Anhui, Beijing, Shanghai, and Guangdong. At the lower end of the spectrum, Jilin and Xinjiang have a slightly higher minimum wage level than Heilongjiang. In 2023, 14 provinces raised their minimum wage standards, with new standards coming into effect for other provinces in 2024.
Regulations and Determinants of Minimum Wages
China’s Provisions on Minimum Wage highlight that legal minimum wages are based on various factors such as living costs, consumption price index, social insurance premiums, and more. Provincial governments determine the minimum wage standards considering these factors and the local economic development level. Despite the increase in minimum wages, China continues to be an attractive destination for foreign investment due to factors like productivity and infrastructure.