City to Increase Minimum Wage by March
The city is planning to increase its minimum wage by 12 percent in March in hopes to attract more workers and help the rise of the cost of living. By March 1st a full time worker minimum wage will be increased to 2,030 yuan up from the current 1,808 yuan. The new level of minimum wage is said to be the highest nationwide after six regions have already adjusted its wage standards for lower income groups. Plus the minimum hourly pay for part time workers is also raised to 18.5 yuan following Beijing which has the highest hourly salary at 18.7 yuan. Unemployment payment is also increases to 1,624 yuan.
The increase in minimum rage is done in hopes to ease the labor shortage right after the Spring Festival that starts Thursday. A lot of migrant workers are expecting to see higher paying jobs after they return from the holiday. Furthermore businesses are told to do a better job of planning it annual salary expenditures. Recently the city is hit by a labor shortage for years as migrant workers return to work in factories that are found closer to their hometown which offer competitive wages with lower loving costs than in Shenzhen.
The fast increase in the cost of living in the city is said to be one of the factor behind the wage raise, in which the minimum wage raise highlighted the challenges that is being faced by the second largest economy in the world particularly in the labor intensive and export oriented industries.