China has no single national minimum wage. Each province, municipality and major city sets its own monthly and hourly rate, and employers must pay at least that local figure. Because rates change every year or two, the current number depends on where you work.
What the law says
The Labor Law of the PRC requires the state to operate a minimum-wage guarantee system, with the specific standard set by each provincial government and filed with the State Council; an employer may not pay below the local minimum wage (Article 48). When setting or adjusting the standard, the government weighs the worker’s living costs, the average wage, productivity, employment and regional differences (Article 49).
Two rules protect the floor even further. A probation wage may not fall below 80% of the agreed wage, and never below the local minimum (Labor Contract Law, Article 20). Minimum-wage standards normally come in two forms – a monthly rate for full-time staff and an hourly rate for part-time work.
What this means in practice
If your pay drops below the local standard, the labor authority can order the employer to pay the shortfall; if it still refuses, the employer can be ordered to add 50% to 100% of the amount owed as compensation (Labor Contract Law, Article 85). The Labor Law lists paying below the local minimum as an infringement for which wages, compensation and damages can be ordered (Article 91). Overtime pay, night and hazardous-work allowances and statutory welfare benefits do not count toward the minimum.
A quick example
(Hypothetical) A part-time cleaner in a city whose hourly minimum is RMB 24 is paid RMB 18 an hour. That is below the local standard; the labor bureau can order the difference, and up to 100% extra if the employer stalls.
FAQ
Q: Is there one minimum wage for all of China?
A: No. Each province and major city sets its own rate, adjusted periodically.
Q: Can my employer pay me less during probation?
A: No. Probation pay must be at least 80% of the agreed wage and never below the local minimum.
Q: What can I do if I am paid below the minimum?
A: Report it to the local labor authority, which can order the shortfall plus 50% to 100% extra if the employer refuses to pay.
Q: Does overtime count toward the minimum wage?
A: No. Overtime pay and most allowances are excluded from the minimum-wage floor.
Wang Guan | Co-founder, Beijing Haolue Law Firm | +86 17813108512