New Minimum Wage to be Introduced in February
A new minimum wage will be introduced on February 1st, making the minimum wage in Shenzhen the highest in the nation. According to the municipal human resources and social security bureau, Shenzhen will be raising its minimum wage to 1,500 yuan per month or 13 yuan an hour. Beijing will be the second city to raise its minimum wage to 1,260 yuan on January 1st.
An annual minimum wage hike in Shenzhen usually happens after April, but officials form the human resources and social security bureau said the hike will be done two months earlier this year and will help employers make adjustments to their budget plans. The wage hike is also planned to attract more workers and to allow labor enterprises to innovate and increase competitiveness.
Raising the minimum wage can help fight inflation, however the wage hike should be moderate to decrease the risk to the overall economic environment. The long term effect will allow other enterprises to undergo technological innovation and upgrade their industries.