As of May 1st of 2010, the minimum wage in Dongguan will be raised from the existing minimum wage 770 yuan per month to 920 yuan ($134) per month.
According to a document released by Guangdong Provincial Government, the minimum wage for both corporate employees and non full-time workers in Guangdong Province will be raised by an average of 21.1%.
There are five grades minimum wage standard listed: Guangzhou, the capital city of Guangdong to implement the 1st grade standard, i.e. 1030 yuan per month, increasing by 19.8%, while that for the part-time workers will be 9.9 yuan per hour. The cities of Dongguan, Zhuhai, Foshan and Zhongshan are set to implement the 2nd-grade standard, i.e. 920 yuan per month, increasing by 19.5%, while that for part-time workers will be 8.8 yuan per hour.
The new standard will be enforced as of May 1st, 2010. Some enterprise respondents commented that the labor cost for a medium-sized factory will be increased by 20% with the implementation of the new minimum wage standard, as Dongguan Daily reported last Thursday.
One of the purposes for the adjustment of the minimum wage standard is to raise the earnings of low-income groups. The minimum wages in eastern, western and northern regions of Guangdong have been adjusted to in excess of 20% so as to narrow the widening income gap between these regions and the Pearl River Delta region, as authorities from the Department of Human Resources and Social Security of Guangdong Province explained.
Government authorities also said that this moderate increase of the minimum wage standard will encourage a larger labor force to Guangdong and help alleviate the labour shortage in local industries.
The new minimum wage standard in Guangdong is a little higher than that in Jiangsu Province and Beijing but lower than that found in Shanghai and Zhejiang Province.
Tips:
The minimum wage shall not include:
a: Payment for overtime
b: Allowances granted for working under special conditions, such as middle shifts, night shifts, high-temperature, low-temperature, underground, noxious or harmful environments
c: Welfare benefits for workers in accordance with the laws, rules and national regulations, such as overtime premium and welfares.
(By Tan Jing)
