Shanghai will increase its statutory minimum wage from 2,480 yuan ($383) to 2,590 yuan per month from July 1, bringing it to one of the highest levels in the country, local authorities announced on Wednesday. According to the municipal human resources and social security department, the hourly minimum wage will increase from 22 yuan to 23 yuan.
The legal minimum wage is the lowest amount that employers may pay to employees for work performed within the legal standard working hours or specific working hours according to their employment contract.
According to South China Morning Post, concerns over rising costs and the trade war with the United States may be hastening the exit of firms from China, but that has not stopped four provincial-level administrations from raising their monthly minimum wage for local workers this year.
So far, in 2021, the provinces of Jiangxi, Heilongjiang, Shaanxi, Xinjiang, and Tibet as well as the cities of Beijing and Tianjin have raised their minimum wage standards. Meanwhile, the province of Jilin and the city of Chengdu stated they would adjust their minimum wages this year.
Currently, Shanghai has the highest monthly minimum wage among 31 provinces (RMB 2,480/US$382 per month) and Beijing has the highest hourly minimum wage (RMB 25.3/US$3.9 per hour). Six regions – Shanghai, Guangdong, Beijing, Tianjin, Jiangsu, and Zhejiang – surpassed the RMB 2,000 (US$308) mark in their monthly minimum wage standards.
Shanghai will increase its statutory minimum wage from 2,480 yuan ($383) to 2,590 yuan per month from July 1, bringing it to one of the highest levels in the country, local authorities announced.
Shanghai, like Beijing, has updated the minimum wage in line with the high cost of living each year since 2015. Guangdong province and other prosperous regions update minimum wage levels less frequently. It is the first time the city has raised its statutory minimum wage since the outbreak of COVID-19.
Regional governments in China aim to find a balance between increasing wages for low earners and keeping business costs down.