Are you aware of the latest labour law updates in China? We highlight the essential legal changes you should pay attention to across the key states in China in August 2024!
1. Increase In Minimum Wage
| Location | Effective Date | Minimum Wage per Month (RMB) |
| Changsha, Hunan Province | September 2024 | 2,100 |
| Yueyang, Hunan Province | September 2024 | 1,900 |
2. Increase In The Maximum Amount of Tax Exemption of Severance Payments
| Location | Effective Date | Maximum Amount of Tax Exemption of Severance Payments (RMB) |
| Shanghai | July 2024 | 443,052 |
| Tianjin | July 2024 | 300,780 |
| Huai’an, Jiangsu Province | August 2024 | 280,815 |
| Zhenjiang, Jiangsu Province | July 2024 | 343,533 |
| Hangzhou, Zhejiang Province | July 2024 | 474,363 |
| Huzhou, Zhejiang Province | August 2024 | 362,232 |
| Jinhua, Zhejiang Province | July 2024 | 362,826 |
| Ningbo, Zhejiang Province | July 2024 | 414,099 |
| Wenling, Zhejiang Province | July 2024 | 343,608 |
| Wenzhou, Zhejiang Province | July 2024 | 336,489 |
| Yiwu, Zhejiang Province | July 2024 | 362,826 |
| Jiaxing, Zhejiang Province | July 2024 | 393,711 |
| Xiaoshan, Zhejiang Province | July 2024 | 474,363 |
| Haining, Zhejiang Province | July 2024 | 393,711 |
| Shaoxing, Zhejiang Province | July 2024 | 336,567 |
| Jinan, Shandong Province | July 2024 | 399,696 |
| Jining, Shandong Province | July 2024 | 299,136 |
| Weihai, Shandong Province | July 2024 | 281,235 |
| Linyi, Shandong Province | July 2024 | 293,160 |
| Weifang, Shandong Province | August 2024 | 264,939 |
| Zhengzhou, Henan Province | July 2024 | 308,763 |
| Kunming, Yunnan Province | July 2024 | 379,428 |
| Changchun, Jilin Province | July 2024 | 330,633 |
3. Increase In The Contribution Base Cap of Non-Taxable Housing Fund
| Location | Effective Date | Contribution Base Camp of Non-Taxable Housing Fund (RMB) |
| Shanghai | July 2024 | 36,921 |
| Beijing | July 2024 | 35,283 |
| Suzhou, Jiangsu Province | July 2024 | 34,700 |
| Kunshan, Jiangsu Province | July 2024 | 34,700 |
| Wuxi, Jiangsu Province | July 2024 | 34,700 |
| Jiangyin, Jiangsu Province | July 2024 | 34,700 |
| Xuzhou, Jiangsu Province | July 2024 | 30,452 |
| Zhangjiagang, Jiangsu Province | July 2024 | 34,700 |
| Hangzhou, Zhejiang Province | July 2024 | 39,530 |
| Jinhua, Zhejiang Province | July 2024 | 30,236 |
| Wenling, Zhejiang Province | July 2024 | 28,634 |
| Wenzhou, Zhejiang Province | July 2024 | 30,540 |
| Yiwu, Zhejiang Province | July 2024 | 30,236 |
| Jiaxing, Zhejiang Province | August 2024 | 32,809 |
| Haining, Zhejiang Province | August 2024 | 32,809 |
| Ningbo, Zhejiang Province | July 2024 | 38,655 |
| Shaoxing, Zhejiang Province | July 2024 | 31,742 |
| Xiaoshan, Zhejiang Province | July 2024 | 39,530 |
| Jinan, Shandong Province | July 2024 | 32,305 |
| Jining, Shandong Province | July 2024 | 24,928 |
| Weihai, Shandong Province | July 2024 | 23,436 |
| Chengdu, Sichuan Province | January 2024 | 31,362 |
| Xingtai, Hebei Province | July 2024 | 19,685 |
| Handan, Hebei Province | July 2024 | 22,465 |
| Ganzhou, Jiangxi Province | July 2024 | 22,472 |
| Shenyang, Liaoning Province | July 2024 | 28,704 |
| Dalian, Liaoning Province | July 2024 | 29,949 |
| Kunming, Yunnan Province | January 2024 | 31,619 |
4. Updates In The Statutory Benefits
Tianjin has issued a notice regarding the average salary of employees for 2023 and the salary and statutory for 2024, effective from August 1, 2024, as follows:
- Average Salary – The annual average salary for local employees for 2023 is RMB 100,260, with a monthly average salary of RMB 8,355.
- Welfare Benefits – For 2024, welfare benefits such as work injury insurance, heating allowances, high-temperature allowances, shift allowances, and night shift allowances will be calculated based on the city’s average monthly salary of RMB 8,355.
- Calculation Base and Standards for Social Contribution –
- The minimum contribution base for basic pension, medical, unemployment, work injury, and maternity insurance is RMB 5,013, while the maximum is RMB 25,065.
- For self-employed individuals and flexible workers without employees, the contribution base for basic pension insurance can be selected between RMB 5,013 and RMB 25,065 while the contribution base for basic medical insurance (including maternity insurance) is set at RMB 5,013.
- The social insurance subsidy for self-employed individuals is calculated based on a contribution base of RMB 5,013.
- For individuals receiving unemployment benefits, the contribution base for basic medical insurance (including maternity insurance) is set at RMB 5,013.
- For overdue basic pension insurance contributions by employers and employees prior to 30 June 2011, the base value is calculated at RMB 5,265. For overdue contributions after 1 July 2011, a daily late fee of 0.05% is applied.
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