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(China Daily)
Updated: 2007-10-09 14:06

The minimum salary level should be raised at the same pace as economic and average income growth, says an article in Yanzhao Metropolis News. The following is an excerpt:

An official from the Ministry of Labor and Social Security said that the minimum salary level has been raised remarkably and the system in our country has been improved.

His statement is supported by valid figures. The average minimum salary of all provinces in 2006 was 14 percent higher than it was in 2004 and the most generous province raised its local minimum salary level by 64 percent in two years.

Besides applauding the raises, we should not ignore another fact: the rise in the minimum salary level should also be judged against the whole picture of the society.

Even after the rises in 2006, the minimum salary level in most provinces is still below 500 yuan (US$66) a month.

It is 360 yuan in Jiangxi Province, 460 yuan in Hubei Province, and 480 yuan in Henan Province. Shenzhen in Guangdong Province has the highest level in the country, 810 yuan.
It is not difficult to see that the rise in the minimum salary level is still quite low when taking into consideration average income growth and economic development.

A minimum salary level is important for the State to protect the interests and rights of workers. An internationally accepted standard is 40 percent of the average income with necessary adjustments according to other circumstances.

But the current minimum salary in our country is far from meeting that level. The average monthly income in Shenzhen was 2,450 yuan in 2005, so Shenzhen's minimum salary level, 810 yuan, is about 33 percent of that.

The minimum salary scheme is meant to protect the public's interests. The authorities should focus more on whether this scheme has worked in ensuring the employed get their due payment. They should try to work out a feasible plan to raise the minimum salary level according to economic growth, inflation, and average income, so that all can enjoy the fruits of our economic prosperity.