Contributions Adjustments in China

Several provinces and municipalities recently released updates about social security requirements and details about average salaries in 2021, upon which the minimum and maximum contributions to social insurance and housing funds for employees are calculated. Contribution base figures for social security are usually capped at 3 times the average salary in the jurisdiction where the employee pays social security. Therefore, labor costs for employers are directly proportional to average salaries.


Jiangsu

The average monthly salary of employees in Jiangsu in 2020 was RMB 8,635.08. Accordingly, on June 30, 2021, the city’s social bureau released the 2021 social welfare base figures. The maximum social contribution base was adjusted to RMB 19,335. The minimum social contribution base was adjusted to RMB 3,368.


According to Su renshe [2021] 107 which was released on November 16, from July 1 to December 31, 2021, the upper limit of the social contribution base for enterprises shall be RMB 20,586, and the lower limit of the base shall be RMB 3,800.


From January 1, 2021 to December 31, 2021, the upper limit of the social contribution base for government institutions is RMB 20,586, and the lower limit of the base is RMB 3,800.


And on November 26, 2021, the Jiangsu social contribution bureau released Su renshe [2021] 113, according to Su renshe [2021] 113, from January 1, 2022 to December 31, 2022, the upper limit of the social contribution base will be RMB 21,821, the lower limit of the base will be RMB 4,250.


Guangdong

The average monthly salary of employees in Guangzhou last year was RMB 7,647. The upper limit of the social contribution base from July 1, 2021 to June 30, 2022 is RMB 22,941. The lower limit of the social contribution base from July 1, 2021 to June 30, 2022 is RMB 4,588 (Guangzhou), RMB 3,958 (Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen), RMB 3,673 (Shantou, Zhaoqing), RMB 3,800 (Shaoguan, Heyuan, Meizhou, Shanwei, Yangjiang, Zhanjiang, Maoming, Qingyuan, Chaozhou, Jieyang, Yunfu).


Beijing

On August 4, 2021, Beijing Social Insurance Fund Management Center and Beijing Medical Insurance Affairs Management Center jointly issued the notice on the upper and lower limits of the base of various social insurance contributions in 2021, which defined the matters related to the adjustment of the upper and lower limits of the base of various social insurance contributions in 2021.


Starting from August 2021, the upper and lower limits of the basic pension, unemployment insurance, work-related injury insurance, and basic medical insurance (including maternity) for enterprise employees in Beijing are unified, of which the upper limit is adjusted to 28,221 yuan and the lower limit is adjusted to 5,360 yuan.


Shanghai

In July 2021, Shanghai Municipal Human Resources and Social Security Bureau updated upper and lower limits of the base of various social insurance contributions in 2021.


Starting from July 1, 2021, to June 30, 2022, the upper limits of the basic pension, unemployment insurance, work-related injury insurance, and basic medical insurance (including maternity) for enterprise employees in Shanghai is adjusted to 31,014 yuan, and the lower limit is adjusted to 5,975 yuan.


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