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.

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