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What you need to know about the minimum wage in China

Speaking of China, it’s probably more appropriate to speak about “minimum wages” instead of one single minimum wage. With its experience in dealing with this complicating particularity, INS Global Consulting can accompany its clients with wage negotiations during recruitment.

Regional variations in the minimum wage

One of the particularities about the labor market in China is that the minimum wage offered by a company can vary depending on where it is located. In short, there is no national minimum wage as is the case in many other countries. The minimum wage varies from one province to another, or from one city to another, depending on the economic and social situations of each region.

In this way, a company which sets up in Beijing can offer their employees a minimum wage (2120 RMB) lower than that of Shanghai (2420 RMB). These wealthier cities offer higher minimum wages than those of the provinces of Guangxi (1000 RMB), Liaoning (1120 RMB) and Hunan (1130 RMB).

Firms such as INS Global Consulting, thanks to their market knowledge, can simplify the task and help you save time when choosing the city in which to establish your company. Afterwards, this kind of firm can then also provide services for employee salary management.

Evolution of the minimum wage

The growth experienced by the Chinese economy over the past few years has had a positive impact on salaries in general. From year to year, minimum wages are increasing. On that note, 15 provinces including Beijing and Shanghai have modified their minimum wage. This movement is intended to develop, and other less wealthy cities than those cited above are also preparing to increase their minimum salaries.

This trend of growing minimum salaries contributes to the increase of the workforce cost in China. Negotiating with employees thereby becomes essential. One solution is to outsource HR management to INS Global Consulting. Their experience and knowledge of the Chinese market enables them to negotiate to the benefit of the client.

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DATE April 23, 2019
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