The Chinese government, as a matter of national policy, has been increasing minimum wage levels by 15 percent to 25 percent annually for the past three years. How this is manifesting itself is an interesting case study, and we offer some interesting graphics to help visualize the current situation.
Op/Ed Commentary: Vivian Ni Feb. 10 – In its latest 12th Five-Year Plan on Employment Improvement (“Plan”), China says it will continue working on increasing wage levels and controlling unemployment rates. Under these new targets, enterprises operating in China may face the challenge of increasing operational costs. Minimum wage and social welfare According to the[…..]
On December 31, 2011, both Shenzhen and Beijing announced their new minimum wage standards for 2012. Following the adjustment, Shenzhen’s minimum wage standard will reach RMB1,500, the highest in the whole country.
By Vivian Ni Nov. 29 – Increasing labor costs have become a major concern for foreign companies mulling whether or not to invest in China, but this may not be the only labor-related issue they should be watching out for. As the recent global economic downturn brings about falling factory orders, an abundance of young,[…..]
By Vivian Ni Nov. 3 – China is gradually shifting away from its position as the world’s default production base for manufacturers. In this country, factor costs are surging and government incentives for foreign investors are diminishing, forcing more and more companies to seek new and attractive destinations where they can relocate their factories. While[…..]
Jul. 26 – Beijing’s municipal government is set to release a new plan aimed at increasing average wages for the capital city’s citizens. Zhang Gong, director of the Beijing Municipal Commission of Development and Reform, said that the average wages of the city’s urban population increased 4.4 percent (after deducting price factors) in the first[…..]
The Minimum Wage Ordinance was passed by Hong Kong’s Legislative Counsel and will come into force on May 1, 2011. The initial statutory minimum wage rate is HK$28 per hour.
Mar. 4 – The Zhejiang Provincial Government has announced that minimum wages in the province are to increase in line with the GDP per capita in each city during the 12th Five-Year Plan. Local authorities should take into account the degree of financial development, cost of living, and the average salary rise in each area[…..]