ID :
194754
Wed, 07/13/2011 - 11:10
Auther :
Shortlink :
https://oananews.org//node/194754
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China's Shenzhen raises minimum wage level
HONG KONG, July 13 (Yonhap) -- Shenzhen, one of China's major manufacturing hubs, has raised its monthly minimum wage for this year, officials said Wednesday, adding to pressure on South Korean and foreign businesses there to pay their employees more.
The municipal government of Shenzhen announced the minimum wage has been hiked to 1,423 yuan (US$220) per month, up 13.2 percent from the end of 2010. Shenzhen's new minimum wage is the highest among Chinese cities.
"The move is in line with the central government's push to raise the overall minimum wage in the country by an annual average rate of at least 13 percent over the next five years," the city government said.
Businesses operating in the southern city will likely be put under pressure to increase their employees' wages to meet the standard, which is feared to push up their labor costs.
Shenzhen is home to thousands of South Korean businesses operating in China, including the subsidiaries of conglomerates such as Samsung Group, LG Group and SK Group.
China has been pushing to increase the income level of both urban and rural residents as it sees domestic consumption as a driver of China's future economic growth.
While China has overtaken Japan as the world's second-largest economy, the country's consumption has not been seen as matching that level, largely due to an urban-rural disparity and a widening income gap between rich and poor.
Income redistribution was one of the priorities for China's government officials when they gathered earlier this year to discuss economic plans for the 2011-2015 period.
The municipal government of Shenzhen announced the minimum wage has been hiked to 1,423 yuan (US$220) per month, up 13.2 percent from the end of 2010. Shenzhen's new minimum wage is the highest among Chinese cities.
"The move is in line with the central government's push to raise the overall minimum wage in the country by an annual average rate of at least 13 percent over the next five years," the city government said.
Businesses operating in the southern city will likely be put under pressure to increase their employees' wages to meet the standard, which is feared to push up their labor costs.
Shenzhen is home to thousands of South Korean businesses operating in China, including the subsidiaries of conglomerates such as Samsung Group, LG Group and SK Group.
China has been pushing to increase the income level of both urban and rural residents as it sees domestic consumption as a driver of China's future economic growth.
While China has overtaken Japan as the world's second-largest economy, the country's consumption has not been seen as matching that level, largely due to an urban-rural disparity and a widening income gap between rich and poor.
Income redistribution was one of the priorities for China's government officials when they gathered earlier this year to discuss economic plans for the 2011-2015 period.
