Beginning February 1, 2012 the minimum wage increased in the City of Shenzhen to ¥1,500 (RMB) per month. This is the highest minimum wage in mainland China.
Overtime wages have also increased with the new law stating that overtime pay must be 1.5 times the hourly rate based upon the monthly wage and number of hours. Weekend overtime has also changed to 2 times the hourly rate and holiday overtime to 3 times hourly rate.
In addition, all employees must now contribute 18% of their minimum wage to the Pension Fund (Social Insurance) for a total of ¥270 with the employer responsible for paying ¥150 of the ¥270 and the employing paying ¥120.
Employers caught paying below the minimum wage may be fined ¥30,000 to ¥50,000 and may have their corporate charter suspended. Shenzhen usually increases its minimum wage in April of every year, however, this year Shenzhen, which is one of the most developed and expensive in China, decided to publish the increase early to allow companies to budget after the Chinese New Year.
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