China Labour Law Updates: July 2023

Are you aware of the latest labour law updates in China? We highlight the essential legal changes that took place in July 2023 that you should pay attention to across the key states in China!

1. New Minimum Wage

Starting from July 2023, Shanghai increased the minimum wage to RMB24 per hour or RMB2,690 per month.

2. The Maximum Amount of Severance Payments Increased

2. The Maximum Amount of Taxable Housing Provident Fund Increased

3. The Work Injury Insurance

Shanghai

Starting from 1 July 2023, Shanghai Municipality has issued a notice on adjusting the standard of disability allowance and living care expenses for workers injured at work in this city to ensure the basic livelihood of workers injured at work. This notice is valid until 30 June 2025. Here are the specific details of the adjustments:

1. New Minimum Monthly Disability Allowances

2. Living Care Allowance

For disabled workers who completed the procedures for receiving monthly pensions as per the regulations before December 31, 2022, if the disability allowance increases, as stipulated in Article 1 of this notice, is lower than the increment in their basic pension for 2023, the difference will be supplemented to them based on the increased pension amount.

For work-related injuries sustained between January 1 and December 31, 2023, if the disability allowance calculated and disbursed according to the guidelines of the “Implementation Measures” is lower than the minimum standard specified in Article 1, Section 2 of this notice, the payment will be adjusted to meet the minimum standard.

Ningxia Hui Autonomous Region

Starting from 1 July 2023, Ningxia Hui Autonomous Region has issued a notice on adjusting the standard of disability allowance and living care expenses for workers injured at work in this city to ensure the basic livelihood of workers injured at work. This notice is valid until 30 June 2025. Here are the specific details of the adjustments:

1. For workers with work-related injuries who are already receiving disability benefits on or before December 31, 2021, the adjustments to their monthly disability allowances are as follows: First-level disability increases by RMB360/month; Second-level disability increases by RMB330/month; Third-level disability increases by RMB300/month; Fourth-level disability increases by RMB270/month; For employees where it is challenging for the employer to arrange work and who receive monthly disability allowances, fifth-level disability increases by RMB240/month and sixth-level disability increases by RMB210/month.
   
2. The dependents who enjoy the pension before December 31, 2021 (inclusive) will receive an increase by RMB110 per month.

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