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:
- Tianjin
- Shanxi
- Inner Mongolia
- Jilin
- Heilongjiang
- Zhejiang
- Hubei
- Gansu
- Ningxia
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’.
SGS Social Responsibility
SGS has been involved in social accountability since its inception and has
been offering tailored audit services since 1996. Supported by a network of
highly trained auditors, with extensive experience of reviewing operation with
particular emphasis on factory capability, labor standards, environmental
compliance and business integrity, SGS supports businesses with their
responsible purchasing policies. Learn more
about SGS’s Social Responsibility.
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.
Subscribe here to
receive SGS SafeGuardS direct to your inbox.
For further information contact:
Calla Huang
Marketing Officer
Email: crs.media@sgs.com
Website: www.sgs.com/cgnr
LinkedIn: sgs-consumer-goods-&-retail
About SGS
SGS is the world’s leading inspection, verification, testing and
certification company. SGS is recognized as the global benchmark for quality
and integrity. With more than 89,000 employees, SGS operates a network of over
2,600 offices and laboratories around the world.