China to raise minimum wage level in 2011

China is set to increase the minimum wage level to a reasonable degree in enterprises at the proper time in 2011. The country will form a wage distribution and regulation system and promote collective wage negotiations to actively explore the establishment of a regular wage growth mechanism.

The Ministry of Human Resources and Social Security reported on Jan. 25 that 30 provinces in China had raised the minimum wage level by the end of 2010, representing a 22.8 percent average growth nationwide.

Shanghai ranked first with a monthly minimum wage level of 1,120 yuan, while Beijing, with the standard of 11 yuan per hour, has the highest hourly minimum wage.

It was reported that 29 provinces nationwide issued a wage guideline in 2010, with a 2 percent average growth at the benchmark level year on year.

In the first month of 2011, Shanghai, Beijing and Tianjin announced increases to the minimum wage.

Shanghai is expected to raise the minimum wage by no less than 10 percent starting on April 1, said Shanghai Mayor Han Zheng.

Guangdong is set to raise the minimum wage for part-time workers by an average of 18.6 percent starting March 1.

Tianjin also plans to increase the minimum wage level by 16 percent.

The guiding wage system for the human resources market and information guidance system for labor costs are also expected to be formed in 2011 to establish a wage payment security system for migrant workers, according to the ministry.

Regulatory specifications of salary administration for senior executives in state-owned enterprises (SOE) are also expected to be set up to promote the reform of payroll management approaches in state companies.

By Li Mu, People's Daily Online