Shanghai Municipal Human Resources and Social Security Bureau recently adjusted the minimum wage standard and the social insurance base as well as the contribution ratio in Shanghai.
The adjustment of the Minimum Wage Standard
The monthly minimum wage standard has been raised by CNY 110 to CNY 2,300, the hourly minimum wage standard is raised to CNY 20 from CNY 19 since April 1st, 2017.
The social insurance and housing fund which is in responsible of the employee, as well as the overtime pay, middle shift & night shift allowance, summer hot temperature allowance，position allowance under poisonous or harmful condition, food allowance, traffic allowance and the housing allowance, are all excluded in the monthly minimum wage standard. The employer has to pay the above fees separately. The hourly minimum wage standard excludes the employee’s share of the social insurance.
The adjustment of the social insurance base and contribution ratio
The social insurance base and contribution ratio has been adjusted since April 1st, 2017, with the upper limit base of CNY 19,512 and the lower limit base of CNY 3,902.
In order to reduce the burden, Shanghai Municipal Human Resources and Social Security Bureau has also decided to reduce the social insurance contribution ratio for the enterprises, as a result of which, medical insurance contribution ratio has been lowered to 9.5% from 10% and the unemployment insurance to 0.5% from 1%. The medical insurance contribution ratio reduction is systematic, however the unemployment insurance contribution ratio reduction is temporary, effective from Jan 1st 2017 to Apr 30th, 2018.
The adjusted contribution ratio is as below:
|Adjusted Contribution Ratio|
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This article is intended solely for informational purposes and does not constitute legal advice. Although the information in this article was obtained from reliable official sources, no guarantee is made with regard to its accuracy and completeness.