Gansu Province has recently adjusted its minimum wage standards, effectively raising the floor for labor compensation across all covered regions. This policy change impacts payroll planning, cost budgeting, and wage compliance for companies operating in Gansu.
New Minimum Wage Levels
Under the updated regulation:
- Class I areas: Monthly minimum wage CNY 2,020, hourly minimum CNY 21.0
- Class II areas: Monthly minimum wage CNY 1,960, hourly minimum CNY 20.5
- Class III areas: Monthly minimum wage CNY 1,910, hourly minimum CNY 20.0
- Class IV areas: Monthly minimum wage CNY 1,850, hourly minimum CNY 19.5
These minimum wage floors apply to all full-time workers during normal working hours and set the base salary threshold. Payments such as overtime pay, allowances, performance bonuses, and special-post subsidies are not included in the statutory minimum wage calculation base — companies must treat them separately. This distinction is critical for correct payroll and compliance handling.
Key Implications for Employers and Payroll Teams
Wage Compliance Is Mandatory
Employers in Gansu must ensure that base pay meets or exceeds the new minimum standards. Simply offsetting low base pay with overtime, allowances, or bonuses does not satisfy the legal requirement. Payroll systems must reflect correct base wages for all employees.
Payroll & Cost Management Must Be Updated
With higher minimum wages, labor costs will rise accordingly. HR and finance teams should update payroll configurations, revisit salary budgets, and forecast increased social-security contributions. Payroll software or salary processing tools should also be reconfigured to align with the latest standards.
Transparent Payroll Records Are Essential
Accurate tracking of base wage, overtime, allowances, and deductions helps prevent compliance risks. It also ensures clarity in wage slips — improving employee trust and reducing disputes.
Strategic Salary Planning for Enterprises
For enterprises with many low-wage or entry-level workers, this change may significantly affect labor cost structure. Employers should consider adjusting hiring, productivity expectations, workload distribution, or automation to maintain profitability while complying with wage regulations.
How ChinaPayroll Can Help
ChinaPayroll offers payroll solutions tailored to multi-province regulatory environments. For clients with operations in Gansu, we provide:
- Up-to-date wage compliance configurations
- Payroll templates aligned with latest minimum wage thresholds
- Detailed salary breakdown and compliance documentation
- Payroll cost projections reflecting new wage floors
Our services reduce administrative burden and compliance risk, helping employers stay compliant while maintaining efficient payroll operations.
If you want to explore salary calculations and minimum wage standards in other Chinese regions, you can visit our multi-city wage calculator here:
https://www.china-payroll.com/salary-calculator-amp-minimum-wages-for-more-cities/
Source: https://gansu.gov.cn/gsszf/c100055/202512/174252637.shtml
