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China: Ten Provinces release guidelines on wage increases for 2014

Zone(s): China ¦ Sector(s): Employment
[23 June 2014, China Briefing, Shanghai]  To date, 10 provinces have released official “guidelines on wage increases” for 2014, including Beijing, Tianjin, Hubei, Shandong, Shanxi, Shaanxi, Henan, Xinjiang, Sichuan and Liaoning.  In China, these guidelines are released by municipal governments and lay out the suggested wage increase levels for enterprises based on regional GDP, labour markets, and other socioeconomic conditions. Guidelines on wage increases can be divided into three levels:

  • Average suggested wage increase: Suggested for enterprises experiencing normal business operations and normal economic growth.
  • Maximum suggested wage increase: Suggested for enterprises experiencing good business operations and strong economic growth.
  • Minimum suggested wage increase: Suggested for enterprises experiencing poor economic growth and can refer to the minimum wage increases

Enterprises that are experiencing difficulties or a deficit can choose to offer a “zero increase” if approved by the Workers’ Congress. Enterprises should take into consideration the wage distribution for managing personnel and ordinary employees. If the wages of ordinary employees are not increased, it is not permitted to increase the wages of managing personnel.

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