What are you looking for?

China Minimum Wage Updates in 2020

SafeGuardSLabor StandardsJanuary 07, 2021

By December 1, 2020, only three provinces had increased their minimum wage standards in the year. The number of provinces and cities that adjusted their minimum wage standards in 2020 declined drastically compared to the previous two years. The average growth rate of monthly minimum wage standards in 2020 is about 7.21%.

The legal minimum wage is the lowest amount which employers may pay to employees for work performed within the legal standard working hours, or specific working hours in accordance with their employment contract. According to the new Provisions on Minimum Wage, the minimum wage is one of two types – a monthly minimum wage or an hourly minimum wage. The monthly minimum wage applies to full-time employees, and the hourly minimum wage applies to others such as part-time and temporary employees. 

By December 1, 2020, only three provinces (Fujian Province, Qinghai Province and the Guangxi Zhuang Autonomous Region) had increased their minimum wage standards in the last year, and they were all implemented before March 1, 2020. As the table below shows, Fujian adjusted the class of areas from five to four, and the monthly minimum wage for these four classes of area were raised to CNY 1,800, CNY 1,720, CNY 1,570 and CNY 1,420 respectively, with the growth rate of each class between 2.9% to 5.9%. Meanwhile, their hourly minimum wages for part-time employment were adjusted to CNY 18.5, CNY 18, CNY 16.5 and CNY 15 respectively. In Qinghai, only the monthly minimum wage was raised, to CNY 1,700 with an increase of 13.3%, the hourly minimum wage is still CNY 15.2. The monthly minimum wage in Guangxi for three classes was increased to CNY 1810, CNY 1580 and CNY 1430, which were all increased by CNY 130. In addition, the hourly rates were increased too, to CNY 17.5, CNY 15.3 and CNY 14 respectively.

Further information is listed in the following table: (sorted by Class area from highest to lowest):

Provinces/
Cities
ClassEffective 
Date
Monthly (full-time) Hourly (part-time)
2020 (CNY)
2019 (CNY) Increase 
rate (%)
2020 (CNY)
2019 (CNY) Increase 
rate (%)
Guangxi Zhuang 
autonomous region
A2020/03/01
1810
1680
(2018 data)
7.7%
17.5

16
(2018 data)
9.4%
B1580
1450
(2018 data)
9%
15.3
14
(2018 data)
9.3%
C1430
 

1300
(2018 data)
10%
 

14
12.5
(2018 data)
12%
 A 1800
1700
(2017 data)
5.9%
18.5
18
(2017 data)
2.8%
B 1720
1650
(2017 data)
4.2%
18
17.50
(2017 data)
2.9%
C1570
1500
(2017 data)
4.7%
16.5
16
(2017 data)
3.1%
D 1420
1380
(2017 data)
2.9%
15
14.6
(2017 data)
2.7%
E1280
(2017 data)

13.6
(2017 data)
Qinghai 
province
A2020/01/01
1700
1500
(2017 data)
13.3%
15.2
15.2
(2017 data)
0

Remarks: *The monthly minimum wage and hourly minimum wage standards in Fujian Province were adjusted to four levels. 
**A, B, C, D mean regional level in each province.

Fifteen provinces and cities raised their minimum wage standards in 2018, and seven in 2019. The minimum wage standard is aimed at not only the protection of workers’ legitimate rights, but also the development of enterprises. Due to the COVID-19 epidemic this year, the business of many enterprises suffered. Therefore, the number of provinces and cities that adjusted their minimum wage standards in 2020 declined drastically compared to the previous two years.

As of 2019, the minimum wage in Shanghai City has been adjusted every year for 10 years. However, Shanghai Municipal Human Resources and Social Security Bureau announced on June 19 that the minimum wage standard in Shanghai would not be adjusted in 2020. The monthly minimum wage standard is maintained at CNY 2,480, the same as 2019. Beijing City, Tianjin City and Shandong Province issued notices on the suspension of the adjustment of their minimum wage standards in 2020. According to the regulation of Ministry of Human Resources and Social Security, the minimum wage standard should be adjusted every two or three years. By December 1, nine provinces and cities had not adjusted the minimum wage standards for over three years, including Tianjin, Shanxi, Inner Mongolia, Jilin, Heilongjiang, Zhejiang, Hubei, Gansu and Ningxia.

The monthly minimum wage standards of A Class regions in six provinces and cities are above CNY 2,000, including Beijing, Shanghai, Guangdong, Tianjin, Jiangsu and Zhejiang. Shanghai ranks first with CNY 2,480, while the monthly minimum wages in A Class region of Anhui is CNY 1,550, ranking last. There is a huge gap of CNY 930 between these two regions, which indicates that the inequality of income distribution in China still needs improvement.

Current minimum wage standards and their effective dates of 31 provinces and cities in China:

Provinces/
City
Effective
Date
Monthly (full-time)
Hourly (part-time)
Class A
(CNY)
Class B
(CNY)
Class C
(CNY)
Class D
(CNY)
Class A
(CNY)
Class B
(CNY)
Class C
(CNY)
Class D
(CNY)
Beijing 07/01/2019 2200    24   
Tianjin
 07/01/2017 2200    20.8   
Hebei
 11/01/2019 1900 1790
 1680 1580 19 18 17 16
Shanxi
 10/01/2017 1700 1600
 1500 1400 18.5 17.4 16.3 15.2
Inner
Mongolia
 01/08/2017 1760 1660 1560 1460 18.6 17.6 16.5 15.5
Liaoning
 11/01/2019 1810 1610 1480 1300 18.3 16.3 15 13.2
Jilin
 10/01/2017 1780 1680 1580 1480 17 16 15 14
Heilongjiang
 10/01/2017 1680 1450 1270  16 13 12 
Shanghai
 04/01/2019 2480    22   
Jiangsu
 08/01/2018 2020 1830 1620  18.5 16.5 14.5 
Zhejiang
 12/01/2017 2010 1800 1660 1500 18.4 16.5 15 13.6
Anhui
 11/01/2018 1550 1380 1280 1180 18 16 15 14
Fujian
 01/01/2020 1800 1720 1570 1420 18.5 18 16.5 15
Jiangxi
 01/01/2018 1680 1580 1470  16.8 15.8 14.7 
Shandong
 06/01/2018 1910 1730 1550  19.1 17.3 15.5 
Henan
 10/01/2018 1900 1700 1500  19 17 15 
Hubei
 11/01/2017 1750 1500 1380 1250 18 16 14.5 13
Hunan
 10/01/2019 1700 1540 1380 1220 17 15 13.5 12.5
Guangdong
 07/01/2018 2100 1720 1550 1410 20.3 16.4 15.3 14
Shenzhen
 2200    20.3   
Guangxi
 03/01/2020 1810 1580 1430  17.5 15.3 14 
Hainan
 12/01/2018 1670 1570 1520  15.3 14.4 14 
Chongqing
 01/01/2019 1800 1700   18 17  
Sichuan
 07/01/2018 1780 1650 1550  18.7 17.4 16.3 
Guizhou
 12/01/2018 1790 1670 1570  18.6 17.5 16.5 
Yunnan
 05/01/2018 1670 1500 1350  15 14 13 
Tibet
 01/01/2018 1650    16   
Shaanxi
 05/01/2019 1800 1700 1600  18 17 16 
Gansu
 06/01/2017 1620 1570 1520 1470 17 16.5 15.9 15.4
Qinghai
 01/01/2020 1700    15.2   
Ningxia
 10/01/2017 1660 1560 1480  15.5 14.5 13.5 
Xinjiang
 01/01/2018 1820 1620 1540 1460 18.2 16.2 15.4 14.6

Additionally, the Beijing Municipal Human Resources and Social Security Bureau issued the wage guideline for 13 industries on November 23, 2020. The security line of minimum wage for Beijing is stipulated as CNY 26,400, CNY 480 more than 2019. In the face of the severe impact of the COVID-19 epidemic on both enterprises and workers, some provinces and cities not only slowed down the adjustment of the minimum wage standards, but also took some relevant measures, such as extending the period of policy on deduction and exemption of social insurance premiums for enterprises, and expanding the coverage of unemployment insurance. These measures can guarantee workers’ income, as well as relieving the burdens of enterprises, which might help enterprises get through the difficult period.

Data source: Human Resources and Social Security department (bureau) websites of provinces and cities listed in the table
Table design: SGS RBS

SGS SERVICE

SGS has been involved in social accountability since its inception and has been offering tailored audit services since 1996. Supported by the largest network of highly trained auditors, with extensive experience of reviewing operations with particular emphasis on factory capability, labor standards, environmental compliance and business integrity we can support your responsible purchasing policies. For further information, please contact us at hk.rbs@sgs.com or visit www.sgsgroup.com.hk/rbs

Responsible Business Services (RBS)
Shenzhen Office
t: +86 (0)755 2532 8137
Hong Kong Office
t:  +852 2774 7440

For enquiries, please contact:

Calla Huang 
Marketing officer
t: +86(0)755 2532 8137 

© SGS Group Management SA - 2021 - All rights reserved - SGS is a registered trademark of SGS Group Management SA. This is a publication of SGS, except for 3rd parties’ contents submitted or licensed for use by SGS. SGS neither endorses nor disapproves said 3rd parties contents. This publication is intended to provide technical information and shall not be considered an exhaustive treatment of any subject treated. It is strictly educational and does not replace any legal requirements or applicable regulations. It is not intended to constitute consulting or professional advice. The information contained herein is provided “as is” and SGS does not warrant that it will be error-free or will meet any particular criteria of performance or quality. Do not quote or refer any information herein without SGS’s prior written consent.

Stay on top of regulatory changes within your industry
Read more articles for the Consumer Goods and Retail industry
  • SGS Headquarters

1 Place des Alpes,

P.O. Box 2152 1211,

Geneva Switzerland