As part of China’s 12th Five Year Plan, legislation has been initiated in efforts to raise the minimum wage in hopes to offset high inflation and increase the standard of living across the country. Advisors to Beijing legislators have considered raising the minimum monthly wage to RMB 1,600. While Beijing currently has one of the highest minimum wages across China, it is likely that it will continue to increase in the future along with many other provinces and industrial cities.
The average wage of a direct employee in Beijing’s manufacturing industry for the first half of 2011 is approximately RMB 2,800 per month. In comparison to recent years, this average wage has remained fairly stagnant, likely due to its high minimum wage. In 2011, Beijing’s minimum wage was raised to RMB 1,160 per month for full time employees. In 2010, the minimum wage stood at 960 RMB, proving that the legislature’s plan was indeed called into action. Calculating the exact cost of a direct employee on an hourly basis involves a complex formula composed of a daily base salary, employee benefits, and taxation.
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