Newsletter
MINIMUM WAGE PROVISIONS ANNOUNCED
In order to uphold workers' lawful right to wages and to assure their basic standard of living, on 20 January 2004 the PRC Ministry of Labor and Social Security (MOLSS) announced new Pro-visions on Minimum Wages. The new provi-sions took effect on 1 March 2004, replacing the Provisions on Minimum Wages in Enterprises promulgated in 1993.
The new provisions provide for both monthly and hourly minimum wage rates, applicable to full-time and part-time workers respectively. Plans to set and adjust minimum wage rates should be drafted by the labor and social security administration of the government of each prov-ince, autonomous region, and special munici-pality, in consultation with labor unions, enter-prise confederations, and entrepreneurs' associa-tions at the same level. The plans should be presented to the MOLSS, which will be deemed to have given its consent if it does not propose amendments within 14 days.
After minimum wage rates are set, the govern-ment should adjust them at appropriate intervals if there are changes in factors such as the basic cost of living for local workers and their de-pendants, the urban consumer price index, em-ployees' average wages, various social insurance costs, the degree of regional economic devel-opment, and employment levels. Rates must be adjusted at least once every two years.
Within 10 days after minimum wage rates are announced, local employers should announce them to all their employees. If an employer fails to comply with this requirement, the labor ad-ministration should order compliance within a specified period. Wages paid to employees, not including overtime payments, special supple-ments, insurance and welfare payments, etc., must not be less than the local minimum wage rates. If the wages are below the local minimum wage rates, the labor and social security admini-stration may order an employer to pay the shortfall within a specified period, and may also order it to pay compensation to its employees of one to five times the shortfall.