Progress Report for Adoption of Minimum Wage in China (May 2012)

China's rapid economic growth over the last decade has resulted in only a tiny proportion of the population becoming extremely wealthy, while the incomes of the remainder has seen only marginal growth. Chinese authorities recognize that a widening disparity of incomes presents social risks that threaten sustainable development in China. China’s 12th Five-Year Plan covers 2011 to 2015. To tackle the issue, the government’s plan foresees an increase to the minimum wage in addition to extending coverage of the social welfare and healthcare systems during this period.

Since becoming effective on March 1, 2004, the legislation for minimum wages in China demands that the standard minimum wage be revised every two years at least, with reference to factors as follows: minimum wage standard (M), cost of living per capita for urban residents (C), social insurance and housing accumulation fund paid by workers (S), average wage of workers (A), unemployment rate (U), economic development (E), and adjustment factors such as working conditions and intensity (a).

By the end of April 2012, 12 provinces and cities had revised their standard minimum wage. With a wide range of increases to monthly (full time) and hourly (part time) levels, where the increases range from 8.6% for full time workers in Beijing, to 37.9% for part time workers in the 4th class area of Gansu province.

Minimum wages depend on local economic development factors and differ in level even within a single city. Information about the minimum by region, city and town is maintained in real time; see the SGS China Minimum Wages Map (http://www.cn.sgs.com/sgssites/socialresponsibility/china-wages-cn.htm)

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This release was published on openPR.