May 30 – In order to adjust to the economic development, rising CPI levels and changing dynamics of the current domestic job market, the Shanghai government issued the “Notice on the 2012 Guideline of Wage Increase for Shanghai Enterprises (hurenshezongfa  No. 31)” on May 21, specifying the government’s suggested 2012 wage increases for enterprises in Shanghai.
Wage increase guidelines
Average suggested wage increase: 12 percent
Enterprises experiencing normal business operations and normal economic growth can refer to the average suggested percentage. However, the wage increase for 2012 can be lower than 12 percent if an individual’s annual salary of the previous year is twice or more than the announced 2011 average wage in Shanghai.
Maximum suggested wage increase: 16 percent
Enterprises experiencing good business operations and good economic growth can refer to a 16 percent suggested wage increase if an employee’s annual salary in the previous year is less than 60 percent of the announced 2011 average wage in Shanghai.
Minimum suggested wage increase: 5 percent
Enterprises experiencing poor economic growth can refer to the minimum 5 percent wage increase. Enterprises that are in difficulties or in deficit can opt to offer a “zero increase” if approved by the workers’ congress.
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