Shanghai Minimum Standards for Hourly Employees 2023

Shanghai will adjust the minimum wage standard starting from July 1, 2023. The monthly minimum wage standard is adjusted from 2,590 yuan to 2,690 yuan, an increase of 100 yuan, and the hourly minimum wage standard is adjusted from 23 yuan to 24 yuan. The monthly minimum wage standard applies to full-time employed workers. If the employee provides normal labor during legal working hours or the working hours stipulated in the labor contract signed in accordance with the law, the monthly wage paid by the employer cannot be lower than the monthly minimum wage standard.

The monthly minimum wage standards in this city do not include social insurance premiums and housing provident funds paid by individual workers in accordance with the law, which are paid separately by the employer. Overtime pay for extended working hours, summer high temperature allowances, mid-night shift allowances and job allowances for toxic and hazardous special working environments, as well as food subsidies, transportation subsidies to and from get off work, and housing subsidies are not part of the monthly minimum wage standard. It will be paid separately by the employer.

The hourly minimum wage standard applies to workers who are employed part-time, that is, the average daily working time of workers in the same employer generally does not exceed 4 hours, and the cumulative working time per week does not exceed 24 hours. The hourly minimum wage standard does not include social insurance premiums paid by individual workers and units in accordance with the law.

The difference between monthly minimum wage and hourly minimum wage:

1. The monthly minimum wage standard applies to full-time employed workers, that is, the minimum treatment that people who work normally in the unit should enjoy , generally the minimum wage standard will be used when the unit implements sick leave benefits, provident fund base, overtime pay standards, probation period wages, etc.

2. The hourly minimum wage standard applies to part-time employed workers, that is, those who do not have a formal work unit and work part-time and odd jobs outside the home. For example, some temporary housekeepers and part-time workers in fast food restaurants are subject to the hourly minimum wage standard.

3. No matter what kind of minimum wage standard, the purpose is to protect the rights and interests of workers and the most basic living conditions.

To sum up, Shanghai’s minimum wage standard is 2,590 yuan, and the hourly minimum wage standard is 23 yuan. The minimum wage standard is the minimum labor remuneration that the employer shall pay to the employee in accordance with the law on the premise that the employee provides normal work within the legal working hours or the working hours stipulated in the labor contract signed in accordance with the law. Its composition does not include extended working time wages. Subsidies for workers working in special working environments and conditions such as night shifts, high temperatures, low temperatures, and underground, as well as worker welfare benefits stipulated by laws, regulations, and the state, etc. The minimum wage standard is adjusted every one to three years. At the same time, Shanghai’s minimum wage clearly stipulates that the monthly minimum wage standard does not include social insurance premiums and housing provident funds that individuals should pay in accordance with the law. These two fees are paid separately by the employer in accordance with regulations. The purpose of minimum wage standards is to protect workers' rights and basic living conditions.

Legal basis:

"Shanghai Municipal Notice on Adjusting the Municipal Minimum Wage Standard (Shanghai People's Social Regulations [2023] No. 18)" Article 1

The monthly minimum wage standard is adjusted from 2,480 yuan to 2,590 yuan. The following items are not part of the monthly minimum wage and will be paid separately by the employer:

1. Wages for extended working hours.

2. Mid-night shift allowance, summer high temperature allowance and job allowance in special working environments such as toxic and hazardous environments.

3. Food subsidies, transportation subsidies to and from get off work, and housing subsidies.

4. Social insurance premiums and housing provident funds paid by individuals in accordance with the law.