Archive for the ‘Shanghai wage’ tag
How Social Security Fund Calculated in Shanghai
As promised in my previous blog 2010 Average Monthly Wage in Shanghai is 3896 RMB, I will describe and demo here how the social security fund calculated in Shanghai. Be noticed that the methodology may be the same in other cities, but the proportion may be different.
In Shanghai, the social security funds are divided to 5 items, including pension, medicare, unemployment insurance, maternity insurance and employment injury insurance. Besides, housing fund is also mandatory. All of these is called Insurance and Housing Fund in China (五险一金, five insurance and one fund). Read full story…
2010 Average Monthly Wage in Shanghai is 3896 RMB
Just noticed that Shanghai average monthly wage in the year 2010 is 3896 RMB (about $605), 9.3% increase over last year. The data was published by Shanghai Human Resources and Social Security Bureau at the beginning of March.
In Shanghai and most other cities of China, employer has the duty to settle social security funds for its employees by law. The fund base is subjected to be adjusted according to the average monthly wage in previous year, and the fund proportion is usually fixed for many years. I will detailed describe how the social security fund calculated in my following blog.
Shanghai Releases Wage Growth Guidelines
Shanghai Human Resources and Social Security Bureau released 2010 wage growth guidelines on 8/4. The average growth ration is 11%, the upper limit is 16% and the lower limit is 4%.
According to related documents, companies should establish long-term mechanism for wage growth. Companies should balance enterprises’ profit and employee’s income growth, which will improve enterprise development and protect employees rights.
2009 Average Monthly Wage in Shanghai is 3566 RMB
At the beginning of the second quarter of 2010, Shanghai Human Resources and Social Security Bureau, Shanghai Municipal Bureau of Statistics announced that the average monthly wage in Shanghai in 2009 was 3566 RMB (about $526), an increase of 8.3% to year 2008.
The allowed minimum monthly wage is 1120 RMB (about $165). As analyzed, there are several stages of the distribution of monthly wages.
