Labor Costs

Sichuan Employee Wage & Labor Cost Information

In early 2011, the average wage of a direct employee in Sichuan is approximately 1,400 RMB per month.  In 2010, Sichuan’s legal minimum wage varied  between RMB 450 and RMB 650 per month for a full time employee.  Since then it has been raised to between RMB 650 to RMB 850. These increases in minimum wage are seen throughout China as legislation is attempting to curb China’s high inflation as well as raise the standard of living.  Legislature has commented that it is likely provinces, municipalities, and SEZs will see increases in the minimum wage through 2015.  Calculating the exact cost of a direct employee on an hourly basis involves a complex formula composed of a daily base salary, employee incentives, and taxation.