SHEIN Supplier Factory Wage Investigation Report

Between April to June 2022, SHEIN engaged 3 leading international audit agencies, TUVR, SGS and Intertek, to conduct a salary investigation across its suppliers’ facilities in South China.

Factories AuditedWorkers InterviewedCities Covered

15210,0118

Cities Covered in the Investigation:

Guangzhou CityDongguan City
Foshan CityGanzhou City
Huizhou CityShantou City
Yiwu City (Jinhua)Zhongshan City

The investigation audited 152 factories across 8 cities in South China, wherein the auditors interviewed over 10,000 workers employed by these supplier factories.

The cities covered include Guangzhou, Dongguan, Foshan, Ganzhou, Huizhou, Shantou, Jinhua and Zhongshan.

Average Salaries Earned

On average, across South China, workers at SHEIN’s supplier factories are paid almost 40% higher than the average industry wages. Supplier factories in the city of Zhongshan paid their workers about 68% higher than the industry average, followed by the factories in Jinhua city, where workers were paid about 58% more than the industry average.

Average Monthly Salaries by City:

 GuangzhouDongguanFoshanShantouZhongshanHuizhouGanzhouJinhua
Industry Average6204.006287.005887.004616.004939.007570.234401.005053.00
SHEIN Average8765.307771.337408.605991.408285.178389.706835.317994.05

Comparison of Salaries to 2021 China Statistical Yearbook (2021 China Census?)

According to the 2021 China Statistical Yearbook, the per capita disposable income of low-income families is CNY655.73 per month, and the per capita disposable income of the middle income group is CNY2187.41 per month, which the high-income group have a per capita disposable income of CNY6691.15 per month.

Workers at SHEIN’s supplier factories earn above-industry standard wages that places the vast majority of them into the upper-middle income group.

Average Monthly Salaries by Role

Fabric CuttersSewingGarment PressQuality Check & Packing
SHEIN Average8678.938253.979868.177310.29

Like any other industry, wages in the garment manufacturing industry are based on different roles and the skills required to perform the task. Across the four key roles / departments within the garment manufacturing facilities that SHEIN contracts with, fabric cutters earn an average of CNY8678.93 per month, while those in the sewing department earn CNY8253.97 per month. The garment press department have the highest average monthly wages at CNY9868.17, while those that do the final quality checks and packing take home an average of CNY7310.29.

According to the wage investigation report by Intertek, the highest salaries received across the different roles are as follow, with a worker in the sewing department receiving the highest monthly wage at CNY21936.40.

 Fabric CuttersSewingGarment Press Quality Check
SHEIN (ITS)16698.8321936.4017960.2018342.60

” We have worked with SHEIN for their Responsible Sourcing Program since 2021. SHEIN clearly takes their responsibility in ensuring that the workers employed by their supplier’s factories receive fair wages for the work completed. This wage investigation shows their committment to the industry and its workforce.” – Spokesperson from TUVR / SGS / Intertek

“SHEIN is committed to promoting a safe and fair workplace for the workers at our supplier factories. Through the SHEIN Responsible Sourcing Program, Supplier Code of Conduct, as well as initiatives like this wage investigation, we invest money, time and effort to ensuring that the workers are treated fairly, and in accordance with local laws and regulations, as well as international labour standards.” – Adam Whinston, Global Head of ESG, SHEIN.