Wages increased in hopes to attract more workers
Starting April Shenzhen will be raising the minimum wage at least 20 percent or to 1,320 yuan, the highest raise in the country. Minimum wages for part time workers will also be raised to 20 percent or 11.7 yuan per hour also the highest per hour in China.
The city government hopes that lifting the minimum wage will improve living standards, attract laborers to resolve labor shortage and optimize industrial structure in the city to accelerate economic growth. As of now Shenzhen minimum wage is set at 1,100 yuan and is expected to double in the next five years.
City’s labor resource and the social security bureau releases a minimum wage standard every year in July. This is adjustment was based on the rising prices and increase in cost of living. That shortage of migrant workers also contributed to the increase of the minimum wage in efforts to attract employees willing to work in Shenzhen. companies even resorted to increasing their employees wage to 20 percent or at 2,000 yuan so they won’t leave the company.
Since 1992 Shenzhen was been slowly raising the minimum wage for eighteen times and the current raise is the highest in the country in 17 years.