May 30 – In order to adjust to the economic development, rising CPI levels and changing dynamics of the current domestic job market, the Shanghai government issued the “Notice on the 2012 Guideline of Wage Increase for Shanghai Enterprises (hurenshezongfa  No. 31)” on May 21, specifying the government’s suggested 2012 wage increases for enterprises in Shanghai.
Wage increase guidelines
Average suggested wage increase: 12 percent
Enterprises experiencing normal business operations and normal economic growth can refer to the average suggested percentage. However, the wage increase for 2012 can be lower than 12 percent if an individual’s annual salary of the previous year is twice or more than the announced 2011 average wage in Shanghai.
Maximum suggested wage increase: 16 percent
Enterprises experiencing good business operations and good economic growth can refer to a 16 percent suggested wage increase if an employee’s annual salary in the previous year is less than 60 percent of the announced 2011 average wage in Shanghai.
Minimum suggested wage increase: 5 percent
Enterprises experiencing poor economic growth can refer to the minimum 5 percent wage increase. Enterprises that are in difficulties or in deficit can opt to offer a “zero increase” if approved by the workers’ congress.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
For further details or to contact the firm, please email email@example.com, visit www.dezshira.com, or download the company brochure.
You can also stay up to date with the latest business and investment trends across emerging Asia by subscribing to the Asia Briefing weekly newsletter.
China’s Social Insurance Law
A summary of some of the key points in the newly implemented Social Insurance Law, which covers a great deal more than just incorporating foreigners into the system. We explain the costs and benefits of participation by foreign employees to both companies and individuals as well as take a look at some of the trends across the country relating to the implementation of the law.
Human Resources in China
Specifically designed to cover the most important issues relating to managing a Chinese workforce, this guide details the HR issues that both local managers in China and investors looking to establish a presence on the mainland should be aware about.
Shanghai City Guide
Asia Briefing’s Shanghai City Guide is designed for the investor seeking a general overview on China’s most comprehensive industrial and commercial city. Due to its rapid economic growth in recent years, Shanghai is perhaps China’s most globalized city and, in addition to its role as Mainland China’s premier financial center, it is boasts an abundance of arts, culture, and cutting-edge technology.
China Minimum Wage Update
Mandatory Social Welfare Benefits for Chinese Employees
Calculating Overtime Payments in China
China Vows to Increase Wages and Improve Employment
Previous Article « EU Chamber Warns of China Investment Withdrawals
Next Article China’s SAT Issues Opinion on International Taxation System »
Dezan Shira & Associates´ brochure offers a comprehensive overview of the services provided by the firm. With its team of lawyers, tax experts, auditors and...
As a legitimate tool for reasonable tax planning and cost saving, tax incentives play an important role. Companies also use tax incentives as a useful...
A firm understanding of China’s laws and regulations related to human resources and payroll management is absolutely necessary for foreign businesses in...
Over the last few months, China has been quickly expanding the pilot program on electronic special value-added tax (VAT) fapiao (hereafter special VAT...
An Introduction to Doing Business in Hong Kong 2021 is designed to introduce the fundamentals of investing in Hong Kong. Compiled by the professionals at Dezan...
Since the formulation of the GBA Initiative in 2017, business communities have placed high expectation on the coordinated development among GBA cities, as the...
Dezan Shira & Associates helps
businesses establish, maintain,
and grow their operations.
Stay Ahead of the curve in Emerging Asia. Our subscription service offers regular regulatory updates,
including the most recent legal, tax and accounting changes that affect your business.