Starting September 1, 2026, Yunnan Province will officially raise its minimum wage standards. The Yunnan Provincial Department of Human Resources and Social Security has issued a notice clarifying that the new wage floors will take effect on that date, with adjustments varying across three tiers of county-level regions based on local economic development levels.

Regional Breakdown by Three Tiers

The first tier covers Kunming's Wuhua, Panlong, Xishan, Guandu, Chenggong, and Jinning districts, along with Anning City and Songming County. Here, the monthly minimum wage rises to 2,270 yuan from 2,170 yuan, while the hourly minimum wage climbs to 22 yuan from 21 yuan.

The second tier applies to other counties under Kunming, Dongchuan District, county-level cities and municipal districts in other prefectures, as well as Yulong County and Deqin County. In these areas, the monthly minimum wage increases to 2,120 yuan from 2,020 yuan, and the hourly rate goes up to 21 yuan from 20 yuan.

The third tier, covering all other counties across the province, sees the monthly minimum wage rise to 1,970 yuan from 1,870 yuan, with the hourly minimum increasing to 20 yuan from 19 yuan.

What Qualifies as "Normal Work"?

According to the provincial human resources department, the minimum wage is defined as the lowest compensation an employer must pay a worker who performs normal labor during statutory working hours or contractually agreed working time. "Normal work" means labor performed by an employee under the terms of their contract during legal or agreed working hours. Paid annual leave, family visits, marriage and funeral leave, maternity leave, contraception surgery leave, and time spent participating in social activities during statutory working hours all count as normal work provision.

Who Is Covered Under the Rules?

The minimum wage standard applies to all employers within Yunnan's administrative region and the workers with whom they establish labor relationships. This includes enterprises, individual economic organizations, private non-enterprise units, state organs, public institutions, social organizations, and lawfully established partnership organizations such as accounting firms and law firms, as well as foundations. Notably, if an employer hires workers beyond the statutory retirement age, the minimum wage rules still apply to their compensation.

Two Forms, Two Applications

The minimum wage comes in two formats: the monthly standard for full-time workers and the hourly standard for part-time workers. The published monthly minimum wage already includes social insurance premiums that employees are required to pay individually, but it does not include the employer's share of social insurance contributions. The hourly minimum wage, however, includes social insurance premiums payable by both the employee and the employer.

What Counts—and What Doesn't

When calculating minimum wage, the base includes social insurance and housing fund contributions that workers must personally pay. Excluded from this calculation are overtime wages for extended working hours (i.e., overtime pay), allowances for special or extra labor consumption—such as shift premiums for middle and night shifts, high-temperature, low-temperature, underground, or toxic and hazardous conditions—as well as non-wage welfare benefits stipulated by laws, regulations, rules, or policies, and monetary housing or meal subsidies provided by employers. In practice, this means that when workers perform normal labor, the employer's payment—after deducting the above items—must not fall below the local minimum wage standard.

For employers using piece-rate or commission-based pay structures, they must negotiate fairly with workers to set reasonable labor quotas and piece-rate prices, ensuring that workers' earned wages under normal labor during statutory working hours do not fall below the local minimum wage.

Enforcement and Legal Recourse

Under Article 85 of the PRC Labor Contract Law, if an employer pays wages below the local minimum wage, the human resources and social security administrative department will order the employer to make up the shortfall within a specified period. If the employer fails to comply, they must pay additional compensation to the worker amounting to 50% to 100% of the payable amount. Workers whose employers violate minimum wage regulations may file reports or complaints with the human resources and social security department, seek resolution through negotiation with the employer, or, if negotiation fails, apply for arbitration at a labor dispute arbitration institution with jurisdiction under the Labor Dispute Mediation and Arbitration Law. Those dissatisfied with the arbitration outcome may file a lawsuit in the local people's court.