Annual average salary figures, typically published in July and August, are used to calculate statutory severance in major Chinese cities.
These figures also determine the ceiling for social insurance and housing fund contributions in key cities like Shanghai, Shenzhen, and Guangzhou.
In Shenzhen and Guangzhou, the Guangdong provincial average salary is used to set the ceiling for social pension insurance contributions.
For 2024, the housing fund and social insurance contribution ceiling in Beijing is RMB35,283, while the statutory severance pay cap is higher at RMB47,103.
Key Salary Data for Major Cities in China
Below is a summary of the most recent salary figures used to calculate statutory severance in several major cities:
City | Average Monthly Salary (2023) | Severance Pay Cap |
Beijing | RMB 15,701 | RMB 47,103 |
Shanghai | RMB 14,826 | RMB 44,478 |
Shenzhen | RMB 12,064 | RMB 36,192 |
Guangzhou | RMB 11,732 | RMB 35,196 |
Tianjin | RMB 10,621 | RMB 31,863 |
Chengdu | RMB 9,654 | RMB 28,962 |
Hangzhou | RMB 12,567 | RMB 37,701 |
Additional Insights
Shanghai: The severance pay cap is also used as the ceiling for social insurance and housing fund contributions.
Shenzhen and Guangzhou: The social pension insurance contribution ceiling is calculated as 300% of the Guangdong provincial average monthly salary, with the current cap set at RMB26,421. The expected mid-2024 adjustment to this cap has yet to be announced.
Beijing: There is a distinction between the contribution ceiling (RMB35,283) for housing and social insurance funds and the severance pay cap (RMB47,103).
These adjustments reflect regional economic conditions and policy measures aimed at balancing labour market stability with social welfare funding. Employers in these cities should ensure compliance with updated salary caps for severance, social insurance, and housing fund contributions.
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