Location : Home > News > Macroeconomy
Ten areas in China raise minimum wage
2010-07-02 13:26:31Source:Global TimesAuthor:
Ten areas in China, including Henan, Shaanxi, Anhui provinces and Shenzhen, raised their minimum wages standard from July 1, according to media reports.
Except Shenzhen, the other nine areas all raised the limits by more than 20 percent, and Hainan increased 31.7 percent, topping the 10.
An insider from All China Federation of Trade Unions said that 27 areas have raised the minimum wages this year, and this is an important step to promote income distribution.
"Raising the minimum wage is an arrangement that local governments made in consideration of the overall economic development trend and rising commodity prices, and to better ensure the basic living conditions of low-income labors," Su Hainan, vice chairman of the China Association for Labor Studies, said.
Cai Jiming, director of the Center for Political Economy at Tsinghua University, said that in recent years, the level of minimum wages in the country has been far below the global average.
Data showed that China's minimum annual income is less than 15 percent of the world's average, ranking in the 159th position.
Cai said that according to relevant rules, local governments should adjust the minimum wage standard at least once every two years.
As the setting of minimum wages is based on a package of conditions, which include the Consumer Price Index (CPI), the economic development level and employment conditions, Su believes that raising the salaries will not exert a negative impact on enterprises, while a few individual labor-intensified firms may be faced with pressure.
Except Shenzhen, the other nine areas all raised the limits by more than 20 percent, and Hainan increased 31.7 percent, topping the 10.
An insider from All China Federation of Trade Unions said that 27 areas have raised the minimum wages this year, and this is an important step to promote income distribution.
"Raising the minimum wage is an arrangement that local governments made in consideration of the overall economic development trend and rising commodity prices, and to better ensure the basic living conditions of low-income labors," Su Hainan, vice chairman of the China Association for Labor Studies, said.
Cai Jiming, director of the Center for Political Economy at Tsinghua University, said that in recent years, the level of minimum wages in the country has been far below the global average.
Data showed that China's minimum annual income is less than 15 percent of the world's average, ranking in the 159th position.
Cai said that according to relevant rules, local governments should adjust the minimum wage standard at least once every two years.
As the setting of minimum wages is based on a package of conditions, which include the Consumer Price Index (CPI), the economic development level and employment conditions, Su believes that raising the salaries will not exert a negative impact on enterprises, while a few individual labor-intensified firms may be faced with pressure.
