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Minimum wages up across China
2010-07-02 13:23:41Source:Global TimesAuthor:
The new minimum wages took effect Thursday in 10 provinces and municipalities including Beijing, Shenzhen and Shaanxi and some workers should see their monthly wage go up by as much as 31.7 percent, as the threat of strikes still looms large in China's manufacturing belt.
On average, the new minimum went up about 20 percent.
In Beijing, the minimum monthly wage or post-tax income has floated to 960 yuan ($141.57) from 800 yuan ($117.98), up 20 percent over last year. About 100,000 low-income laborers could benefit from the wage increase, according to Beijing Municipal Bureau of Human Resources.
"It wouldn't bring enterprises an unbearable cost in general," said Su Hainan, director of the Compensation Committee of the China Association for Labor Studies.
The adjustment came after officials considered multiple factors such as the cost of living, inflation, the social average salary increase, economic development and employment status, Su said.
The seemingly substantial increase partially makes up for absence of an increase or a small one during the past two years, Su noted.
Over the next five years, the average labor cost in China will grow 20 percent annually due to the aging population and the State's preferential policy towards low-income populations, according to a report by Shenyin Wanguo Securities Research Institute.
Rising labor cost means fewer young people are joining the labor force than before, suggesting an end to China's infinite supply of surplus labor, said Lai Xiaoqiong, a professor with Xiamen University.
It is time for China to adjust its economic growth model to make it science and technology driven instead of the labor-intensive model, Lai said.
The increasing labor cost wouldn't lead to high inflation but will change the profitability of industries, said Li Huiyong, a macro-economic analyst with Shenyin Wanguo.
On average, the new minimum went up about 20 percent.
In Beijing, the minimum monthly wage or post-tax income has floated to 960 yuan ($141.57) from 800 yuan ($117.98), up 20 percent over last year. About 100,000 low-income laborers could benefit from the wage increase, according to Beijing Municipal Bureau of Human Resources.
"It wouldn't bring enterprises an unbearable cost in general," said Su Hainan, director of the Compensation Committee of the China Association for Labor Studies.
The adjustment came after officials considered multiple factors such as the cost of living, inflation, the social average salary increase, economic development and employment status, Su said.
The seemingly substantial increase partially makes up for absence of an increase or a small one during the past two years, Su noted.
Over the next five years, the average labor cost in China will grow 20 percent annually due to the aging population and the State's preferential policy towards low-income populations, according to a report by Shenyin Wanguo Securities Research Institute.
Rising labor cost means fewer young people are joining the labor force than before, suggesting an end to China's infinite supply of surplus labor, said Lai Xiaoqiong, a professor with Xiamen University.
It is time for China to adjust its economic growth model to make it science and technology driven instead of the labor-intensive model, Lai said.
The increasing labor cost wouldn't lead to high inflation but will change the profitability of industries, said Li Huiyong, a macro-economic analyst with Shenyin Wanguo.
