China no longer has an advantage in labor costs due to increases in manufacturing wages in recent years, according to a report.

The study, conducted by the Institute of Industrial Economics with the Chinese Academy of Social Sciences, said pay in China's manufacturing industry had seen substantial growth, far exceeding that in Southeast and South Asian countries.

In 2012, 25 provinces adjusted minimum wages with an average increase of 20 percent and a minimum wage hike was undertaken in 27 regions last year with an average increase of 17 percent, according to statistics from the Ministry of Human Resources and Social Security.

Average pay for a worker in Shanghai is $495 per month, double the wage for Jakarta, three times that in Hanoi and 1.88 times that of Mumbai, the study said.

But the big increase in manufacturing costs is unlikely to continue in the next few years when China will give more priority to economic upgrading and restructuring it noted.

At a Central Economic Work Conference last week, China said its economy has entered "the new normal" stage, featuring a shift from high-speed growth to medium-to-high expansion with the focus more on quality and efficiency.