Tag : China Wages

Shenzhen Issues 2012 Salary Guide

Jul. 13 – The Shenzhen Municipal Bureau of Labor and Social Insurance recently issued the “Shenzhen Municipal Human Resources Market Salary Guide (2012) (hereinafter referred to as ‘Salary Guide’).” The data in the Salary Guide is based on random surveys of employees across different industries in the city.

Shenzhen’s overall high, median and low monthly wages are RMB25,830, RMB3,087 and RMB1,600, respectively, with an average of RMB3,892. According to the Salary Guide, the high and median wage figures have increased a respective 1.7 percent and 3.9 percent compared to last year, while the average and low wage figures increased by a respective 17 percent and 12.4 percent. The relatively large increase in the latter two can be attributed to the increase in minimum wages over the past few years. Continue reading →

Posted in Business, Economy and Politics, South China | Tagged China HR, China Labor, China Overheads, China Wages, Shenzhen | Leave a comment

China Minimum Wage Update

Update (January 28, 2013): See our most recent – and more comprehensive – article on China’s minimum wage levels by clicking here.

By Julia Gu

May 25 – Recently, soaring costs in China’s traditional manufacturing clusters, including land prices, tightening environmental regulations, and wage overheads, have been posing challenges for manufacturers.

The Chinese government is apparently shifting from creating preferential policies for foreign investors towards instead favoring its local labor pool due to the country’s widening income gap. In addition, wage hikes will boost domestic consumption to keep the country’s economy expanding while overseas markets remain weak.

To that end, China’s Ministry of Human Resources and Social Security revealed the latest minimum wage levels across China in a press conference last month. The table below shows that most provinces and cities have set up minimum wage levels of more than RMB1,000. Continue reading →

Posted in Business, Culture and History, Economy and Politics, Legal and Regulatory | Tagged China Labor Costs, China Legal, China Minimum Wage, China Overheads, China Regulatory, China Wages | Leave a comment

Minimum Wage Levels Across China

Feb. 22 – As wage levels in China have recently come under scrutiny (Foxconn, a key supplier for Apple, raised salaries at their China factories by 25 percent earlier this week following international criticism), the country’s actual minimum wage levels have been in place for decades and have been rapidly rising across the board.

The Chinese government, as a matter of national policy, has been increasing minimum wage levels by 15 percent to 25 percent annually for the past three years. Rates vary by region and are set by each respective local government – calculated in tandem with a number of other indicators, including relations to the local housing market. They are also set to rise over the coming years as China looks to shift its economy towards a more balanced consumer society. To achieve that goal, Chinese citizens need to have increasing levels of disposable income. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Featured, Minimum Wages | Tagged China HR, China Labor, China Minimum Wages, China Operational Costs, China Overheads, China Wages | 1 Comment

Calculating Overtime Payments in China

Feb. 15 – Doling out overtime payments can be expensive for employers. With regards to paying overtime in China, employees are grouped into three categories working under different systems – the standard work hour system, the comprehensive work hour system, and the non-fixed work hour system.

The standard work hour system requires that an employee’s normal working day should not exceed eight hours, that the normal working week not exceed 40 hours, and that each employee should be guaranteed at least one rest day. Most white-collar workers in China now operate under a five-day working week, although some domestic companies still utilize a six-day working week model. Continue reading →

Posted in Business, Legal and Regulatory | Tagged China Employment, China HR, China Labor Law, China Overheads, China Overtime, China Wages | 2 Comments

China 2012: Strong Growth Forecast, No Inherent Problems

China next year – changes and trends (part one of a two-part article)

Op-Ed Commentary: Chris Devonshire-Ellis

Dec. 12 – Our firm, Dezan Shira & Associates has just finished our initial draft budgeting for 2012, and although some tweaking still needs to be carried out, the initial prognosis for the coming year seems positive. Our budgets are designed based upon the levels of performance achieved during 2011, a track record of 20 years’ operations in China providing us with plenty of precedence as concerns analysis, and the fact that we are a national business with some 12 offices throughout the country.

We consolidate our national budgets for the forthcoming year by adding together all the regional budgets planned by our various offices (which are each examined individually), discuss the details of each, make adjustments as necessary, then put them all together to see what it looks like, and overview onto that other issues that we feel we need to invest in over the course of the coming year. That becomes an operational budget as how we see the year behaving – and our track record in getting this right is pretty good – mostly as much of it is based upon definable and expected costs. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Markets | Tagged China 2012 Budgets, China Economic Forecast, China Economy, China Financial Planning, China GDP Growth, China Labor, China Labor Costs, China Overheads, China Social Insurance, China Wages, Chris Devonshire-Ellis | 3 Comments

2012 China Investment, Operational and Budget Tips

Op-ed Commentary: Chris Devonshire-Ellis

Nov. 1 – Getting a handle on budgets for China businesses in 2012 is proving to be a headache this year, as so much is hanging in the balance. In emerging markets such as China, it is difficult enough already to cater for the inevitable bumps along the road, preparing for the forthcoming year is as difficult as I ever remember it – and I’ve managed Dezan Shira & Associates through the Asian Financial Crisis (1997), SARS (2003) and now the Global Financial Crisis (2008). Note the time spread – something difficult occurs in China on average once every five years. Continue reading →