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Beijing Average Monthly Wage Increased to CNY 5,793




by:
Duncan A. W. Abate
Helen H. Liao
Hong Tran
Mayer Brown JSM - Hong Kong Office

Andy S. Yeo
Mayer Brown JSM - Shanghai Office

 
June 19, 2014

Previously published on June 17, 2014

On 6 June 2014 the Beijing Municipal Human Resource and Social Security Bureau and the Beijing Municipal Statistics Bureau announced that the average monthly wage for 2013 was CNY 5,793. This is an increase of 10.9 percent on the previous average monthly wage of CNY 5,223 determined in 2012.

The 2013 average monthly wage will be used to set the following caps on payment in respect of an employee:

  • Statutory economic compensation payable to an employee on termination of employment (note: the new cap will be CNY 5,793 × 3 = CNY 17,379);
  • Contribution base of the statutory social insurance premium;
  • Contribution base of the housing provident fund; and
  • Relevant entitlements (e.g., lump-sum subsidy for disability) for an employee who suffers from a work-related injury or occupational disease.

Employers should take note of the increase in the cap for calculating the above entitlements.



 

The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 

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Duncan A. W. Abate
Helen H. Liao
Hong Tran
Andy S. Yeo
 
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