Keywords: Beijing, average monthly wage, new cap

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.

Originally published 11 June, 2013.

Visit us at www.mayerbrownjsm.com

Mayer Brown is a global legal services organization comprising legal practices that are separate entities (the Mayer Brown Practices). The Mayer Brown Practices are: Mayer Brown LLP, a limited liability partnership established in the United States; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales; Mayer Brown JSM, a Hong Kong partnership, and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2013. The Mayer Brown Practices. All rights reserved.

This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein. Please also read the JSM legal publications Disclaimer.