Inner Mongolia Announces New Minimum Wage Standards Effective December 2025

The People’s Government of Inner Mongolia Autonomous Region has officially issued a notice adjusting the region’s minimum wage levels, effective December 1, 2025. The update raises the baseline for labor compensation and requires employers to update payroll systems and salary structures to remain compliant.

Updated Minimum Wage Standards

According to the official notice, Inner Mongolia will implement the following monthly and hourly minimum wage classifications:

Class I areas
- Monthly minimum wage: CNY 2,380
- Hourly minimum wage (non-full-time): CNY 23.5
Class II areas
- Monthly minimum wage: CNY 2,310
- Hourly minimum wage: CNY 22.8
Class III areas
- Monthly minimum wage: CNY 2,250
- Hourly minimum wage: CNY 22.0

These minimums apply to employees working under standard full-time arrangements. The minimum wage covers only the base salary for normal working hours and does not include overtime pay, night-shift allowances, high-temperature subsidies, performance bonuses, or other non-wage benefits. Employers must calculate these items separately.

Key Implications for Employers and Payroll Compliance

1. Payroll systems must be updated before December 1, 2025

All employers operating in Inner Mongolia must adjust their base salary settings to reflect the new wage floors. Failure to update payroll systems may result in wage arrears, penalties, or labor disputes.

2. Increased minimum wages will affect labor cost planning

The wage adjustments will raise the baseline labor cost for enterprises, particularly those relying on entry-level roles or hourly employees. HR and finance teams should revise annual labor budgets and adjust hiring plans accordingly.

3. Salary structure must remain compliant and transparent

Employers must ensure clear separation between:

Base wage (must meet the legal minimum)
Overtime wages
Allowances and subsidies
Performance-related pay
Statutory contributions

Compliant payroll documentation helps prevent disputes and enhances internal governance.

4. Impacts on hiring, retention, and regional payroll strategy

As wage floors rise, employers may face increased competition for labor. Companies should evaluate productivity measures, workforce allocation, and automation strategies to manage rising payroll costs sustainably.

How ChinaPayroll Supports Employers

ChinaPayroll assists businesses in navigating wage adjustments and payroll compliance across China. For enterprises operating in Inner Mongolia, we provide: