Several major industrial cities in Guangdong, southern China, will raise their minimum wage levels in September as officials hope that it could help solve labour shortage in the province.

After the new standard comes into effect on 1 September, workers in Guangdong will be entitled to a minimum wage of 780 yuan (US$97.5) per month. The minimum wage inside the Shenzhen Special Economic Zone will increase from 690 yuan to 810 yuan. In Zhuhai, Foshan, Dongguan and Zhongshan cities the minimum will be put up to 690 yuan, while that of Shantou, Huizhou and Jiangmen will be increased to 600 yuan. The monthly minimum wage in Shaoguan, Heyuan, Meizhou, Shanwei, Yangjiang, Zhanjiang, Maoming, Zhaoqing, Qingyuan, Chanzhou, Jieyang and Yunfu cities will increase to 500 yuan. Some counties' minimum wage will be raised to 450 yuan per month.

Official media reported that a large number of foreign-invested factories and companies in Guangdong are suffering a shortage of more than one million workers. Low salaries are blamed as a major reason that many rural migrant workers are leaving the area for the Yangtze River Delta region in eastern China.

Fang Chaogui, director of Guangdong Provincial Bureau of Labour and Social Security, believed that the increased monthly salary will benefit more than 23 million rural migrant workers who are currently employed in the province. He also noted that it is the seventh time Guangdong province has raised its minimum wage in 12 years and this year's is the biggest increase so far.

Workers can report to the local labour authorities if their wages are lower than the minimum wage level. Employers who failed to adjust the salary will be fined 5,000 to 50,000 yuan, Fang said.

In Shanghai City and Jiangsu province in the Yangtze River Delta, the minimum monthly salary is 690 yuan, while it is 640 yuan in Beijing. There have been reports that these areas are also considering an increase in minimum wage level.

Sources: People's Daily (13 July 2006), China Daily (13 July 2006), Shanghai Daily (13 July 2006), Guangzhou Daily (13 July 2006)

13 July 2006