Monday, February 11 08:39:38
Wage pressures are rising in the Chinese market as the growth in spending power gathers momentum. While China is still a long way from full employment due to the seemingly never ending supply of labour from agriculture the trend is certainly beginning to turn with wage pressures and competition for workers increasing.
Minimum wages in Guangdong province will be raised 19.1 percent on average from May 1. Minimum wages in Guangzhou, the capital of Guangdong, will rise 19.2 percent to 1,550 yuan ($249) a month and 15 yuan per hour, the provincial department of human resources and social security said on Feb 5 according to a report in China daily. Minimum wages in second-tier cities such as Zhuhai, Foshan, Dongguan and Zhongshan will rise to 1,310 yuan a month and 12.5 yuan per hour.
A three months' buffer period will be set to allow businesses to adjust their budgets.
These increases are part of a trend which is gaining momentum as both the domestic economy and export led businesses strive to encourage their workers to stay, particularly at the end of the current New Year holidays.
Report by Cathal O Dubhain