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Legal Update

Beijing Average Monthly Wage Increased to CNY 5,793

17 June 2014
Mayer Brown JSM Legal Update

On 6 June 2014 the Beijing Municipal Human Resource and Social Security Bureau and the Beijing Municipal Statistics Bureau announced that the average monthly wage for 2013 was CNY 5,793. This is an increase of 10.9 percent on the previous average monthly wage of CNY 5,223 determined in 2012.

The 2013 average monthly wage will be used to set the following caps on payment in respect of an employee:

  • Statutory economic compensation payable to an employee on termination of employment (note: the new cap will be CNY 5,793 × 3 = CNY 17,379);
  • Contribution base of the statutory social insurance premium;
  • Contribution base of the housing provident fund; and
  • Relevant entitlements (e.g., lump-sum subsidy for disability) for an employee who suffers from a work-related injury or occupational disease.

Employers should take note of the increase in the cap for calculating the above entitlements.


  • Duncan A. W. Abate
    T +852 2843 2203
  • Hong Tran
    T +852 2843 4233
  • Andy S. Yeo
    T +86 21 6032 0266

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