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CORPORATE SOCIAL RESPONSIBILITY SOLUTIONS NO. 018/08 MARCH 2008

Cities in Raise Minimum Wages for Enterprise Workers Minimum wages in the Guangdong province are reviewed every two years in accordance with Minimum Wage Regulation (Order No. 21 of the Ministry of Labor and Social Security) and Rules on Remuneration Payment of . An increase to the minimum wage standard for full and part-time workers was recently announced, which will be effective from April 1, 2008.

This is the eighth adjustment to the RMB 530 to RMB 860. There is an Shenzhen has been excluded from Guangdong Minimum Wage, which is overall 12.9% average increase when the application of this coming ad- much higher than the growth of CPI compared with the current minimum justment as it has its own regional (consumer price index). This Notice wage with each category recording an legislation rights, which allows the requires each city to implement the average 10% increase. city to adjust the minimum wage at standard for the province as its own discretion. a ,minimum and allows them to set a These increased minimum wages will higher rate if they wish. attract more workers to the Guang- dong area, and will assist in retention The Ministry of Labor and Social Secu- to avoid the current labor shortages. rity has indicated that they expect the Zhujiang Delta to face continuous pressure to increase salaries over the next five years. This is due to cur- rency deflation, an increase in the value of the RMB and changes in labor structure. This would indicate that the potential for local companies to restrict workers’ salaries as a means to in- crease their profitability is no longer practicable.

After this latest adjustment, cities in the Guangdong area, which are di- vided into 5 categories, have new monthly minimum wages ranging from CORPORATE SOCIAL RESPONSIBILITY SOLUTIONS NO. 018/08 MARCH 2008

the Comparison Sheet for Guangdong Minimum Wage for Enterprise Workers (2006-2008)

Minimum Wage Standard 2008 Hour Basis 2008 Hour for flexible position Applicable Category Basis (RMB/hr) 2006 Standard 2008 Standard (RMB/hr) (RMB/Month) (RMB/Month)

I 780 860 4.94 8.3

Zhuhai, , Dong- II 690 770 4.43 7.4 guan, , and Jiang- III 600 670 3.85 6.5 men , , , , Yangji- ang, , , IV 500 580 3.33 5.6 Zhaoqing, , , ,

The Counties which under V 450 530 3.05 5.1 the city IV

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