Labor costs refer to the expenses associated with employing workers or labor. It includes various elements such as wages, salaries, benefits, bonuses, and payroll taxes. The specific amount of these costs depends on factors such as the size of the company, industry, and geographic location. In addition, some companies may also need to pay additional expenses such as social security and housing provident fund contributions.

In summary, labor costs are an important component of business operations and need to be calculated and arranged based on the actual situation.

When considering locations to make foreign investments, minimum wages in China are one helpful gauge when comparing different areas in the country. Furthermore, to determine the true labor cost, it is important that investors consider industry-specific wage levels, access to incentives and availability of the right talent.

Shanghai has the highest minimum wage in China at 2,690 yuan ($375) per month (as of July 2023).

Sources: rsj.sh.gov.cn, tjj.sh.gov.cn, investinchina.chinaservicesinfo.com