While Fujian generally has one of the lowest labor costs in China, the minimum wage and average wage per direct employee are likely to rise in the future. Chinese legislature has expressed its interest in continuing to increase the minimum wage through 2015. Most if not all of the provinces have seen an increase in minimum wage since 2009. In 2010 The Ministry of Human Resources and Social Security explained that the minimum wage level had increased by an average growth nationwide of 22.8 percent. Fujian was among 10 other provinces to raise their minimum wage by more than 20 percent in March of 2011.
The average wage of a direct employee in Fujian in 2010 was approximately RMB 1,510 per month. In the first half of 2011, the average wage per month rose to RMB 1,947, approximately a 29 percent increase from 2010. Fujian’s minimum wage varies between cities and regions. In 2010 it stood at RMB 600 to RMB 900. As with many other provinces, the minimum wage now falls between RMB 750 and RMB 900 per month for full time employees. 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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