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China sets minimum wage rules(6/02/04)

The Ministry of Labor and Social Security on Feb 6 publicized on its website a special regulation on minimum wage that is the first of its kind in China.

The regulation, to take effect March 1, divides wages into two types, one monthly and the other hourly, respectively applying to full-time and non full-time workers.

The monthly minimum wage should take into account factors such as a worker and his dependents' minimum living cost, the urban resident consumption price index, social security and housing accumulation fund fees, average salary, economic development level and employment situation.

The hourly minimum wage should take into account the local monthly minimum wage, retirement pension and medical insurance fees, working conditions and intensity, work stability and welfare of non part-time workers, according to the regulation.

Different standards between areas within a single province, municipality or autonomous region are allowed.

Provincial-level labor and social security authorities should be responsible for setting and adjusting the minimum wage standard, deciding its application and related explanations.

The authority should consult local trade unions, enterprise unions or entrepreneur associations when setting the minimum wage standard and report it to the labor ministry, according to the regulation.

Employers who violate the regulation would be ordered to compensate for back pay and possibly receive administrative sanctions.

 


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