The minimum wage in China ranges between 1,600 to 2,700 Yuan per month (about $220 to $370), for full time employees. The specific rate is determined locally (China Minimum Wage Rules § 7) for approximately 100 different wage districts as shown in the chart below. The law has numerous exceptions and special rules for minimum wage, which will be explained briefly below.

All forms of typical income for an employee are rolled up on a monthly reporting basis to see if they clear the threshold, and “ordinary” includes things like commissions, performance bonuses, and piece rate payments. Under Chinese law, several apparently ordinary payments cannot be included in minimum wage (Minimum Wage Rules § 12), and minimum wage only includes the “typical” compensation for someone’s work, thus it does not include wage differentials, such as night shift, high/low temperatures, underground, and hazardous work conditions. It also doesn’t include any non-monetary benefits spent or social security contributions.

In some cases, you are permitted to pay less than minimum wage. The most common scenario is that workers on medical leave may be paid at a lower rate than their standard wage, and the minimum allowed is 80% of the local minimum wage. A company that has economic difficulties and needs to reorganize or file for bankruptcy can obtain regulatory approval to pay less than minimum wage. Certain businesses may also pay workers with no work assignments 70% of the local minimum wage.  The social security contribution floor will generally be higher than the minimum wage.

In general, social security is paid at the average monthly earnings for an employee from the past 12 months, but this does not apply to minimum wage workers. There is a floor on the social security base that can be used, which is set at 60% of the local average wage. A ceiling is set at 300% of the local wage for high earners.

Minimum Wage Chart

How to Read the Chart: Each province or home rule city such as Shanghai sets its own minimum wage, and uses a regional minimum wage system, where provinces are subdivided based on cost of living into one of four tiers. Each tier has its own minimum wage.