Chinese Province Increases Minimum Wage By 23%
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The cost of living in China is rising, with inflation climbing every single month. In order to attract workers, the southwest Chinese province, Sichuan, has raised the minimum wage by a sharp 23 percent amid the rising cost of living.
China’s state media agency, Xinhua, reported yesterday that the province of Sichuan was raising the minimum monthly wage by 23.4 percent starting on the 1st of January.
The cost of living in China is rising, with inflation climbing every single month. In order to attract workers, the southwest Chinese province, Sichuan, has raised the minimum wage by a sharp 23 percent amid the rising cost of living.
China’s state media agency, Xinhua, reported yesterday that the province of Sichuan was raising the minimum monthly wage by 23.4 percent starting on the 1st of January.
Several Chinese cities have already reported labour shortages, and Sichuan with a population of 89 million is a major exporter of migrant workers, especially for the wealthier coastal cities like Shanghai.
According to Sichuan human resource officials, the minimum monthly salary will rise to between 800 to 1,050 yuan ($126 to $167), depending on the industrial sector.
Sichuan is not the only province to raise the minimum wage this year. According to Yin Chengji, a spokesperson for the Ministry of Human Resource and Social Security, 21 provinces, autonomous regions and municipalities have already raised the rate by an average of 21.7 percent by October this year.
Authorities have said that they expect China’s average minimum wage to grow at least 13% annually over the next five years.
Rising wages have prompted analysts to predict that China, previously known for its low cost of labour, could lose its edge as a manufacturing hub.
However, Chinese authorities have been trying to boost domestic consumption and be less export dependent, and a rise in wages will encourage spending.
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