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Legal Update

Beijing's 2012 Average Monthly Wage of CNY5,223 Used as New Cap

11 June 2013
Mayer Brown JSM Legal Update

On 8 June 2013, the Beijing Municipal Human Resource and Social Security Bureau and the Beijing Municipal Statistics Bureau announced that the local average monthly wage for 2012 was CNY5,223, an increase of 11.8 percent on the 2011 average of CNY4,672.

Beijing's 2012 local average monthly wage is to be used as the new cap:

  • For the calculation of the base of the statutory economic compensation payable to a departing employee (the new cap is CNY5,223 × 3 = CNY15,669);
  • For the contribution base of the statutory social insurance premium;
  • For the contribution base of the housing provident fund;
  • For calculating the 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.

For inquiries related to this Legal Update, please contact Duncan Abate, Hong Tran, Andy YeoHelen Liao or your usual contacts with our firm.


  • Andy S. Yeo
    T +86 21 6032 0266

Related People

  • Duncan A. W. Abate
    T +852 2843 2203
  • Hong Tran
    T +852 2843 4233

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