SAFEGUARDS SGS CONSUMER TESTING SERVICES CORPORATE SOCIAL RESPONSIILITY SOLUTIONS NO. 049/10 MARCH 2010 MINIMUM WAGES INCREASED IN JIANGSU Jiangsu becomes the first province to raise minimum wages in China in 2010, with an average increase of over 12% effective from 1 February 2010. Since 2008, many local governments have deferred the plan of adjusting minimum wages due to the financial crisis. As economic results are improving, the government of Jiangsu Province has decided to raise the minimum wages. On January 23, 2010, the Department of Human Resources and Social Security of Jiangsu Province declared that the minimum wages in Jiangsu Province would be increased from February 1, 2010 according to Interim Provisions on Minimum Wages of Enterprises in Jiangsu Province and Minimum Wages Standard issued by the central government. Adjustment of minimum wages in Jiangsu Province The minimum wages do not include: Adjusted minimum wages: • Overtime payment; • Monthly minimum wages: • Allowances given for the Areas under the first category (please refer to the table on next page): middle shift, night shift, and 960 yuan/month; work in particular environments Areas under the second category: 790 yuan/month; such as high or low Areas under the third category: 670 yuan/month temperature, underground • Hourly minimum wages: operations, toxicity and other Areas under the first category: 7.8 yuan/hour; potentially harmful Areas under the second category: 6.4 yuan/hour; environments; Areas under the third category: 5.4 yuan/hour. • The welfare prescribed in the laws and regulations. CORPORATE SOCIAL RESPONSIILITY SOLUTIONS NO. 049/10 MARCH 2010 P.2 Hourly minimum wages are calculated on the basis of the announced monthly minimum wages, taking into account: • The basic pension insurance premiums and the basic medical insurance premiums that shall be paid by the employers. • The disparities between non- fulltime laborers and fulltime laborers in terms of working stability, condition, intensity and welfare etc. Minimum wages should be regulated at least once every two The monthly wages shall not be less than the local minimum wages after the years. Raising minimum wages deduction of the items mentioned above and the housing fund paid by the plays a positive role in ensuring the employees. basic living needs of laborers and Definition of minimum wage their families. As for the enterprises, higher wages help As stipulated in article 3 of Provisions on Minimum Wages taking effect on attract and retain experienced March 1, 2004, the term “minimum wage” refers to the minimum labor workers and increase the number remuneration that shall be paid by the employer under the precondition that the of professional workers, leading to laborer has provided normal labor within the actual working hours or the working improved work efficiency and hours as prescribed in the labor contract concluded according to the law. The quality. term “normal labor” refers to work undertaken by a laborer in accordance with a legally established contract. Provisions on adjustment of the minimum wages When determining and regulating the monthly minimum wage, local authorities take account of the following factors: • The minimum living cost of the local employees and the people they support; • The urban residents' consumption price index; • The social insurance premiums and housing fund paid by the employees themselves; • The average wage in the area; • The economic development level of the area; • The employment status of the area and etc. CORPORATE SOCIAL RESPONSIILITY SOLUTIONS NO. 049/10 MARCH 2010 P.3 Adjustment of monthly minimum wages in Jiangsu Province City with City without districts /District/ Category Before After Effective date districts County (RMB/month) (RMB/month) Changzhou Jintan City, Liyang City 2nd 700 790 2010-2-1 Tianning District, Zhonglou District, 1st 850 960 2010-2-1 Qishuyan District, New Zone, Suburban Districts, Wujin District Huaian Qinghe District, Qingpu District, 2nd 700 790 2010-2-1 Development Area Chuzhou District, Huaiyin District, 3rd 590 670 2010-2-1 Lianshui County, Hongze County, Quyi County, Jinhu County Lianyungang Guannan, Guanyun, Donghai, Gangyu 3rd 590 670 2010-2-1 Lianyungang 2nd 700 790 2010-2-1 Nantong Chongchuang District, Gangzha District, 1st 700 960 2010-2-1 Economic and Technological Development Zone, Langshan District, Qidong District, Tongzhou City, Haimen City Haian City, Rudong City, Rugao City 2nd 700 790 2010-2-1 Nanjing Jiangpu County, Liuhe County 1st 850 960 2010-2-1 Xuanwu District, Baixia District, Jianye 1st 850 960 2010-2-1 District, Gulou District, Qinhuai District, Xiaguan District,Yuhuatai District, Qixia District, Pukou District, Dachang District, Jiangning District Lishui County, Gaochun County 2nd 700 790 2010-2-1 Suqian All regions in Suqian 3rd 590 670 2010-2-1 Suzhou Suzhou City, Wujiang City, 1st 850 960 2010-2-1 Zhangjiagang City, Kunshan City, Taicang City, Changshu City Taizhou Hailing District, Gaogang District 2nd 700 790 2010-2-1 Jingjiang City, Jiangyan City, Xinghua 3rd 590 670 2010-2-1 City, Taixing City (To be continued) CORPORATE SOCIAL RESPONSIILITY SOLUTIONS NO. 049/10 MARCH 2010 P.4 (Continued) City with City without districts /District/ Category Before After Effective date districts County (RMB/month) (RMB/month) Wuxi Yixing City 1st 850 960 2010-2-1 Chong’an District, Beitang District, 1st 850 960 2010-2-1 Nanchang District, Mashan District, Binhu Distirct, Xishan District, Huishan District, Jiangyin District Xuzhou Pizhou, Qiaoning 3rd 590 670 2010-2-1 Xinyi, Tongshan 3rd 590 670 2010-2-1 Xuzhou 2nd 700 790 2010-2-1 Yancheng Yancheng City, Dafeng City, Dongtai 2nd 700 790 2010-2-1 City, Yandu County Jianhu County, Sheyang County, Funing 3rd 590 670 2010-2-1 County, Binhai County, Xiangshui County Yangzhou Jiangdu City, Yizheng City, Gaoyou City, 3rd 590 670 2010-2-1 Baoying County Yangzhou City 2nd 700 790 2010-2-1 Zhenjiang Jurong City 2nd 590 790 2010-2-1 Danyang City, Yangzhong City 2nd 700 790 2010-2-1 Including Jingkou District, Runzhou 1st 700 960 2010-2-1 District, Dantu District, Zhenjiang New Area SGS provides a range of tailored audit services and operates in more than 55 For further information on our full countries worldwide. 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