City to Raise Minimum Wage in February
The city human resources officials decided to raise the minimum wage by 13 percent or to 1,808 yuan per month starting February 2014. The hourly wage for part time employees is also raised by 13.8 percent or 16.5 yuan. The increase in the minimum wage will benefit around 936,000 employees working in the city.
The increase in the wages is part of the government efforts in increasing productivity in labor and to narrow the local income gap. City officials was been steadily making it a regular practice in 1992 to efforts in adjusting the minimum wage every two years. The monthly minimum was at 1,320 yuan in 2011 then increased to 1,500 yuan in 2012 and 1,600 yuan this year. While several residents expressed their dissatisfaction on the latest increase saying that the increase will likely be reflected on the food, rent and prices of clothes. The government is trying to control commodity prices instead of try and encouraging a bubble economy.
Financial analysts are saying that the wage hike is still low and cited an example that a person making minimum wage still will be unable to purchase a square meter of housing in Shenzhen. The average housing price in Shenzhen is more than 21,000 yuan per square meter and rent last month was at 51.2 square meters showing an increase of more than 12 percent compared to November of 2012.