City to Raise Minimum Wage by Fifteen Percent

City to raise minimum wage by fifteen percentAccording to the head of the Shenzhen Municipal Human Resources and Social Security Bureau, the city is planning to raise the minimum wage by fifteen percent or 1,500 yuan. this will be the first time the city has made adjustments to the minimum wage  in the month of January, when it is usually adjusted in July.

The decision to advance the increase in the minimum wage is in hopes of attractting more migrant workers to the city. The city usually experiences labor shortages every year, especially after the Spring Festival. Shenzhen needs to be competitive with other cities in terms of wages and some of the companies in Shenzhen need time to organize their yearly payrolls.

The wage adjustment plan has already been turned over to the city government for approval. The increase in the minimum wage doesn’t include overtime or subsidies for work done at night, work in high and low temperatures, or in hazardous or  special conditions. Employers that fail to pay the minimum wage will face penalties of up to 50,000 yuan.

The current minimum wage in Shenzhen is 1,320 yuan, part time employees are paid by an hourly rate of 11.7 yuan, the highest rate among major Chinese cities. Shenzhen has implemented the highest wage rise in the past nineteen years since April last year when it increased the minimum wage from 1,100 yuan to 1,320 yuan.


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