Minimum Wage of China

China has the second-largest economy in the world, and the country is well-known for its immense industrial output, strict labor laws and surprisingly low labor costs. Despite its low cost of living, however, China’s minimum wage remains surprisingly low, far below the minimum wages set in many other countries. This article takes a closer look at China’s minimum wage regulations and what is being done to raise them.

Minimum Wage Regulations in China

China’s Ministry of Human Resources and Social Security (MOHRSS) is responsible for setting the minimum wage regulations in the country. The MOHRSS sets the minimum wages for each region in the country, taking into account the cost of living, the local economic situation and the standard of living. As of 2018, China’s minimum wage ranged from around 930 yuan per month in the province of Jilin to 2,180 yuan per month in the province of Shanghai.

Despite the relatively low minimum wages set by the MOHRSS, many local governments in China have set their own minimum wages, which are higher than the national minimum wages. For example, the cities of Beijing and Shenzhen have minimum wages of 2,400 yuan and 2,220 yuan respectively.

Effects of Low Minimum Wages

Despite the increases in the minimum wages set by the MOHRSS and local governments in recent years, the minimum wages in China are still far lower than the minimum wages set in other countries. This has had negative effects on the Chinese economy, as it has led to widespread exploitation of workers and a decrease in the purchasing power of Chinese citizens.

Low minimum wages have also caused a decrease in the number of jobs available in the country. This is because employers are often unwilling to pay higher wages, due to the fact that they can find cheaper labor elsewhere. As a result, many Chinese workers are having difficulty finding jobs that provide them with a living wage.

Raising Minimum Wages

Many advocates of worker rights in China have been calling for higher minimum wages for many years, and their efforts have had some success in recent years. In 2016, for example, the Chinese government increased the minimum wage by an average of 8.4 percent, although the actual increase was much higher in some regions.

In addition, many local governments in China have been raising their own minimum wages in recent years. This has had positive effects on the Chinese economy, as it has raised the purchasing power of Chinese citizens and made it easier for them to afford basic necessities such as food and housing.

Conclusion

China’s minimum wage regulations have had a significant impact on the country’s economy and its citizens. Despite the increases in the minimum wages set by the MOHRSS and local governments in recent years, the minimum wages in China are still far lower than the minimum wages set in other countries. This has had negative effects on the Chinese economy, as it has led to widespread exploitation of workers and a decrease in the purchasing power of Chinese citizens. Nevertheless, there has been some progress in recent years, as the Chinese government and local governments have taken steps to raise minimum wages in the country.

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