Does the minimum wage include social security?

The cost of social insurance consists of two parts, one is paid by the unit and the other is paid by the individual.

The minimum wage standard refers to the minimum labor remuneration that the employer should pay according to law on the premise that the laborer provides normal labor within the statutory working hours or the working hours stipulated in the labor contract signed according to law. In other words, the minimum wage actually includes social insurance premiums paid by individuals.

To determine and adjust the monthly minimum wage, we should refer to the minimum living expenses of local workers and their dependent relatives, the consumer price index of urban residents, the social insurance premiums and housing accumulation funds paid by individual workers, the average wage of workers, the level of economic development, employment status and other factors. Accordingly, the minimum wage standard includes social insurance premiums paid by individuals.

Therefore, after employers withhold and remit social insurance premiums according to law, the wages received by workers may be lower than the local monthly minimum wage.

Legal basis: Article 12 of the Minimum Wage Regulations: Under the condition that laborers provide normal labor, the wages that employers should pay to laborers shall not be lower than the local minimum wage standard after deducting the following items: (1) wages for extended working hours; (2) allowances under special working environments and conditions such as middle shift, night shift, high temperature, low temperature, underground, toxic and harmful; (3) Employees' welfare as stipulated by laws, regulations and the state, etc. The employing units that implement the wage forms such as piecework wage or royalty wage shall not pay workers wages lower than the corresponding minimum wage standard on the basis of scientific and reasonable labor quota. If the laborer fails to provide normal labor within the statutory working hours or the working hours stipulated in the labor contract signed according to law due to his own reasons, the provisions of this article shall not apply.