Labor Costs

China has no standard national minimum wage, but nearly all of its various provinces and other local jurisdictions have enacted legislation designating a minimum wage for full time and part time employees. Provincial and municipal governments review and reevaluate these standards on a regular basis, taking into account inflation and cost of living indexes. Unusually high inflation and a rising cost of living were just a few of the factors contributing to the goals in China’s Twelfth Five Year Plan.  The Plan urged provinces and local jurisdiction to continue increasing the minimum wage through 2015. As China’s economy moves into its late-industrial period, many well-organized trade unions have begun to consistently put pressure on corporations to increase labor wages.

Macau is the only region in China that has no legal minimum wage. However, strong demands from local trade unions have created a de facto minimum similar to the minimum wage of its neighbor, Zhuhai. Due to the high cost of living, Hong Kong’s minimum wage is much higher than those of mainland China.

Calculating the exact cost of a direct employee on an hourly basis involves a complex formula composed of paid holidays, social insurances, and various optional bonuses that are considered customary in China.

Additional Resources Description
Understand China Labor Rates A China Labor Rate Comparison Chart by Region
Understand China Wage Glossary A Glossary of China Labor Costs Terms & Definitions
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Understand China Currency Converter Up-to-date Currency Conversion and Exchange Rates
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