Four Regions in China Increase Minimum Wage Level in First Half of 2019

GENEVA - Aug. 20, 2019 - PRLog -- Official data released by Chinese authorities shows that four regions have so far increased their minimum wage levels in the first half of 2019. These are:

·         Beijing

·         Shanghai

·         Chongqing

·         Shanxi

In addition, six district's minimum wage levels now exceed CNY 2000. These are Beijing, Tianjin, Shanghai and the A class regions in Zhejiang, Jiangsu and Guangdong.

Shanghai has retained its position as the region with the highest minimum wage level, having adjusted its level every year for the last ten years. Its current monthly level is CNY 2480. Beijing retains the highest hourly rate, at CNY 24, with Shanghai in second place (CNY 22). At the other end of the scale, Qinghai still has the lowest monthly minimum wage at CNY 1500, followed by the A class region in Anhui (CNY 1550).

Looking at the rate of increase, the B class regions in Chongqing showed the greatest increase at 21.4% (monthly and hourly), with the C class regions of Shanxi increasing by 8.1%. Beijing and Shanghai had comparatively low increase rates, but they also adjusted their levels in 2018.

Chongqing and Shanxi have retained a small gap of CNY 100 between the different regional classes. For example, in Chongqing the monthly minimum wage in A class is CNY 1800 and CNY 1700 in B class.

Stakeholders should be aware that, while only four areas have adjusted their wage levels so far in 2019, several more are expected to follow. Adjustments should be made at least every two to three years, which means Hebei, Tianjin, Inner Mongolia, Fujian, Guizhou, Gansu, Hunan and Qinghai are all coming close to the need for an adjustment.

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