On 6 June 2014 the Beijing Municipal Human Resource and Social Security Bureau and the Beijing Municipal Statistics Bureau announced that the average monthly wage for 2013 was CNY 5,793. This is an increase of 10.9 percent on the previous average monthly wage of CNY 5,223 determined in 2012.

The 2013 average monthly wage will be used to set the following caps on payment in respect of an employee:

  • Statutory economic compensation payable to an employee on termination of employment (note: the new cap will be CNY 5,793 × 3 = CNY 17,379);
  • Contribution base of the statutory social insurance premium;
  • Contribution base of the housing provident fund; and
  • 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 17 June 2014.

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