What Are the Pros and Cons of Minimum Wage?

The minimum wage refers to the minimum amount of labor remuneration paid by the employer or the employer under the premise that a normal labor is provided during the legal working hours.

minimum wage

(Minimum remuneration for normal labor)

Minimum wage

The concept of minimum wage has the following three meanings:

1. The prerequisite for obtaining the minimum wage is that the laborer provides normal labor during the legal working hours;

1.Minimum

The specific procedures mainly include: collecting materials and formulating plans; reporting to the record; changes and responses; approval and release; adjustments.

What should be considered in determining the minimum wage

The principle of coordination; the principle of basic living security; the principle of democratic consultation; the principle of hierarchical management.

Due to different income tax laws in different countries, there may be other subsidies (some are food, some are bus subsidies, some are directly

Advantage

Protecting Workers' Salaries: When Social

Article 48 of the Labor Law of the People's Republic of China: The state implements a minimum wage guarantee system. The wages paid by the employer to the workers shall not be lower than the local minimum wage standard.

Article 20 of the Labor Contract Law of the People s Republic of China The wages of workers during the probation period shall not be lower than the minimum salary of the same post in the unit or 80% of the wage agreed in the labor contract, and shall not be lower than the minimum of the employer s location fee standard.

The "Minimum Wage" in Article 48 of the Labor Law, [1995] 309, Article 48 refers to the minimum labor remuneration paid by the unit on the premise that the laborer has fulfilled normal labor obligations within the legal working hours. The minimum wage does not include remuneration for extended working hours, housing and food subsidies paid by employers, middle shift, night shift, high temperature, low temperature, underground, toxic, harmful and other special working environment and labor conditions, Social insurance benefits provided by national laws, regulations and rules.

The Ministry of Labor [1994] No. 409, Article 3, Point 3: Regarding the composition of the minimum wage standard, in addition to the deductions listed in the "Minimum Wage Regulations for Enterprises" (Labor Department [1993] No. 333), the employer passed subsidies Non-monetary income paid to workers such as food and housing is also excluded.

Article 56 of the Ministry of Labor [1995] No. 309: In the labor contract, if the labor agreed by both parties fails to complete the labor quota or contract task, the terms of the employer's wages of the employer may be lower than the wage of the laborer. There is no law. Effect.

Article 57 of the Ministry of Labor [1995] 309: After the laborer and the employer have formed or established an employment relationship, during the probation, proficiency, and probation periods, during the legal working hours, the laborer provides normal labor, and the employer must pay labor The minimum wage is not lower than the local standard.

Article 19 of the "Interim Provisions on Wage Payments" issued by the Ministry of Labor [1993]: Enterprises that implement piece-rate wages or pay in the form of wages must make reasonable conversions, and the corresponding conversions must not be lower than the time, day, week, and month Corresponding minimum wage rate.

Article 16 of the [1994] Provisional Regulations on Wage Payments issued by the Ministry of Labor: If the employer causes losses to the employer due to his own reasons, the employer may require him to compensate for economic losses in accordance with the terms of the labor contract; compensation for economic losses may be obtained from labor Deducted from the employee s own salary, but the monthly deduction may not exceed 20% of the worker s current monthly salary. If the remaining salary after deduction is lower than the local minimum wage standard, it must be paid according to the minimum wage standard.

Salary payment method for suspension of work:

Nationwide: Article 12 of the "Interim Provisions on Wage Payments" [1994] No. 489 issued by the Ministry of Labor: The unit shall suspend or stop production for reasons other than labor. Within a wage payment period, the employer shall pay labor in accordance with the standards stipulated in the labor contract Wages. For more than one wage payment cycle, if the laborer provides normal labor, the labor remuneration paid to the laborer shall not be lower than the local minimum wage standard; if the laborer does not provide normal labor, it shall be handled according to national regulations.

Economist objections

Most economists are opposed to the minimum wage policy and believe that it is based on the most basic economic principles

Different provinces and cities within mainland China have different minimum wage standards. For example, Zhongshan City, Guangdong Province in September 2006

Map of minimum wages across provinces and cities nationwide The minimum wage in the city will be raised from RMB 574 to RMB 690 per month starting from January 1. In 2010, the Taiwan Executive Council approved that the basic salary will be adjusted to NT $ 17,880 per month, NT $ 98 per hour, equivalent to RMB 21.5, and 103 hours of work per month starting from January 1, 2011.

2011 Minimum wage adjustment in 2011

Since April 1, 2011, Zhejiang Province has implemented a new minimum wage standard, adjusted from 1,100 yuan to 1,310 yuan per month. Just after the first quarter of 2011, 12 provinces, autonomous regions, and municipalities across the country adjusted their minimum wage standards. According to statistics

minimum wage At present, the provinces that adjust the minimum wage are mostly in the eastern region. Judging from the minimum wage amount, Zhejiang in the eastern region has surpassed Shanghai, which has always been at the top of the list, and has become the province with the highest minimum wage in the country.

In addition, from the perspective of increase, half of the regions exceeded 20%. Among them, Chongqing rose 27.9%, ranking first in the ranking.

Of the 12 regions where the minimum wage was adjusted, the eight provinces in the east all exceeded 1,000 yuan. Experts said that the eastern part of the country itself is a developed domestic economy, and the location characteristics of processing and commodity export bases make these provinces very much in need of high-quality labor. Therefore, in order to attract labor, increasing wages is inevitable. In addition, Hangzhou, Ningbo, Zhejiang and other places have encountered difficulties in recruiting workers since the Spring Festival.

Minimum monthly wages in some provinces

Before province adjustment

1 Zhejiang 1310 1100

2 Guangdong 1300 1030

3 Shanghai 1280 1120

4 Tianjin 1160 920

4 Beijing 1160 960

6 Jiangsu 1140 960

7 Shandong 1100 920

7 Fujian 1100 900

currency: RMB

The 2011 work conference of the Beijing Federation of Foreign-funded Enterprises' Trade Unions stated that

New standards are being implemented everywhere Round collective contract. In the collective contract, combining the characteristics of foreign companies, for the first time, the minimum wage for foreign-funded enterprises was proposed to be not less than 150% of the minimum wage standard in Beijing.

Since January 1, 2011, the minimum wage in Beijing has been adjusted from 960 yuan to 1,160 yuan. According to regulations, four types of items, such as overtime wages, extra wages, and various social insurance premiums and housing provident funds payable by individual workers, must be paid separately by the employer and not included in the minimum wage. According to this standard 150% calculation, the minimum wage for employees of foreign-funded enterprises in Beijing will be 1,740 yuan.

Promote the link between corporate effectiveness and employee wages

It is reported that this standard has been negotiated with foreign-invested enterprises, taking into account the affordability of the enterprise, and will not cause an excessive burden on the enterprise. At the same time, the terms of collective wage negotiations will be included in the terms of collective contracts, and the establishment of a linkage mechanism between corporate effectiveness and employee wage growth will be advocated.

24 provinces adjusted an average increase of 22% during the year

On December 29, 2011, Yin Weimin, Minister of Human Resources and Social Security, said that a total of 24 provinces across the country adjusted the minimum wage standard during the year, an average increase of 22%. 31 provinces across the country launched trial surveys of corporate salaries. Twenty-seven provinces issued wage guidelines for 2011, with baselines above 14%.

The monthly minimum wage standard in Shanghai will continue to increase. This is the 18th time that Shanghai has increased the minimum wage line since the establishment of the minimum wage line adjustment mechanism in 1993.

Previously, in April 2011, the monthly minimum wage in Shanghai was raised from 1,120 yuan to 1,280 yuan.

The Shanghai Release emphasized that the Shanghai monthly minimum wage standard does not include social insurance premiums and housing provident funds paid by individual workers, and is a net income that workers can get. This standard line is based on comprehensive factors such as price levels and social flat wages. Adjustment.

The "Shanghai Release" also revealed that Shanghai will implement a "dual linkage" mechanism in state-owned enterprises: employee income is linked to corporate benefits to ensure that employee income grows steadily as corporate efficiency increases; leadership income is linked to employee income to improve the assessment and incentive mechanism.

In addition, Shanghai will further improve the collective wage negotiation mechanism and the support mechanism for employees in need, classify and adjust the level of wage growth, and reasonably control the wage distribution gap.

2012 Minimum wage adjustment in 2012

Shandong Province latest regulations in 2012

Since March 2012, the minimum wage rate has been raised again. The monthly minimum wage rate is divided into 3 levels according to the level of economic development in each region, which are 1,240 yuan, 1,100 yuan, and 950 yuan, respectively.

The Shandong Provincial Government stated that the increase in the minimum wage was based on the relevant regulations of the State and Shandong Province, combined with the actual economic and social development of Shandong Province. At the same time, there is an hourly minimum wage adjustment. The adjusted three levels are 13 yuan, 11 yuan, and 10 yuan, respectively.

2013 Minimum wage adjustment in 2013

National minimum wage standard in early 2013

On New Year's Day in 2013, the minimum wages in Henan, Shaanxi, Zhejiang, and Beijing were raised again. Among them, the monthly minimum wage in the first-class administrative region of Henan Province was 1,240 yuan, and the monthly minimum wage in the first-class wage region of Shaanxi Province was 1,150 yuan. The highest monthly minimum wage is 1,470 yuan, and the minimum wage in Beijing is adjusted from 1,260 yuan per month to 1,400 yuan.

18 provinces and cities raise minimum wage standards

Adjust at least once every two years

Starting from July 1, Jiangsu, Sichuan and Liaoning will raise the minimum wage. According to statistics from Chinanews.com, as of now, 18 provinces, autonomous regions and municipalities across the country have raised the minimum wage in 2013. In absolute terms, the monthly minimum wage in Shanghai is 1620 yuan, the highest in the country; the highest hourly minimum wage in Beijing and Xinjiang is 15.2 yuan.

Anhui and Fujian will also raise the minimum wage in due course.

In addition, the "Several Opinions on Deepening the Reform of the Income Distribution System" approved by the State Council proposed that the minimum wage standards should be adjusted in a timely manner based on economic development, price changes, and other factors. More than 40% of wages.

24 regions raise minimum wage standards

Since September 1, 2013, Hubei has raised the minimum wage. After adjustment, Hubei Province has the lowest

Regions with minimum wage increases in 2013 Wage standards are divided into three levels by region. The monthly minimum wages for full-time employed workers are 1300 yuan, 1020 yuan, and 900 yuan, respectively. The hourly minimum wage for part-time workers is 14 yuan, 11 yuan, and 9.5 yuan.

So far, since 2013, there have been Shanghai, Guangdong, Tianjin, Zhejiang, Beijing, Shandong, Shanxi, Henan, Jiangxi, Guangxi, Shenzhen, Gansu, Shaanxi, Guizhou, Xinjiang, Jiangsu, Sichuan, Liaoning, Ningxia, Jilin and Yunnan. , Anhui, Fujian, and Hubei raised the minimum wage standards in 24 regions.

Judging from the absolute number of minimum wages, the highest monthly minimum wage in the country is Shanghai, which reaches 1,620 yuan; the highest hourly minimum wage is in Beijing and Xinjiang, which are 15.2 yuan.

2014 Minimum wage adjustment in 2014

According to the unified deployment of the Shanghai Municipal Party Committee and Municipal Government, with the consent of the municipal government, Shencheng Shanghai will adjust a series of standards for the protection of people's livelihood from April 1. The adjustments to the standard of livelihood protection this time include the minimum wage standard, unemployment insurance standard, related employment subsidy standards, and work injury insurance three treatment standards, as well as the maximum payment limit for the annual pooled funds of employee medical insurance. From April 1st, the five standards of livelihood security in Shanghai will be increased: the monthly minimum wage standard will be increased from 1620 yuan to 1820 yuan, the hourly minimum wage standard will be increased from 14 yuan to 17 yuan; unemployment insurance benefits will be in three levels of 1-12 months Each file is increased by 180 yuan; the maximum payment limit of the staff medical insurance co-ordination fund for the 2014 medical insurance year has increased from 340,000 yuan to 360,000 yuan. Employment subsidy and work injury insurance standards have also increased accordingly. After the adjustment, Shanghai's minimum wage is still the highest in the country. ^[3]

As of April 1, 2014, seven provinces and municipalities, including Chongqing, Shaanxi, Shenzhen, Shandong, Beijing, Shanghai, and Tianjin, have raised the minimum wage.

15 regions announce minimum wage standard of 1820 yuan in Shanghai

On July 1, Sichuan, Jiangxi, Guizhou and Inner Mongolia officially implemented the latest 2014 minimum wage standards.

15 regions in the Mainland have raised their minimum wages in 2014 Among them, the monthly minimum wage standard in Sichuan Province in 2014 was adjusted from 4 levels to 3 levels in 2013, and the highest level was 1,400 yuan per month; the minimum wage level in the first-class regions of Jiangxi Province was 1,390 yuan, which was increased by 160 yuan in 2013; Provincial first-class areas were raised to 1,250 yuan per month; Inner Mongolia first-class areas were increased from 1,350 yuan per month to 1,500 yuan per month.

With the increase of the minimum wage standards in the above-mentioned four regions, according to incomplete statistics from reporters from Chinanews.com, since 2014, Chongqing, Shaanxi, Shenzhen, Shandong, Beijing, Shanghai, Tianjin, Shanxi, Qinghai, Gansu, Yunnan have 15 regions including Sichuan, Jiangxi, Guizhou, and Inner Mongolia raised their minimum wages.

From July 1, 2014, Henan Province adjusted the minimum wage standard. There are three types of monthly minimum wage standards: 1,400 yuan / month, 1,250 yuan / month, and 1,100 yuan / month. According to the information released by the Ministry of Human Resources and Social Security of Henan Province on the 25th, the province has implemented the minimum wage system since 1995, and it is now the 10th consecutive adjustment. The adjusted minimum wage standard is divided into one, two, and three types of administrative regions, with increases of 12.90%, 13.63%, and 14.58% respectively; hourly minimum wage standards are 13.5 yuan, 12 yuan, and 10.5 yuan, respectively, with increases of 15.38. %, 15.38%, 16.67%.

2015 Minimum wage adjustment in 2015

In February 2015, Guangdong Province issued a notice on adjusting the minimum wage standard for employees in our province, announcing an increase in the minimum wage standard. ^[1]

On February 12, 2015, the Beijing Municipal Bureau of Human Resources and Social Security announced a centralized increase in six social security treatment standards. Among them, the basic pension of enterprise retirees per capita increased by 305 yuan to 3355 yuan per month, and is expected to be reissued from January. Starting from April 1, the minimum wage standard for enterprises will also be raised by 160 yuan to 1,720 yuan. According to the Municipal Bureau of Human Resources and Social Affairs, the adjustment of the six standards will benefit 3.142 million people in this city.

In addition, the minimum living standard for urban and rural residents has also increased. The Civil Affairs Bureau released news yesterday that Beijing's urban minimum living standard was raised by 60 yuan to 710 yuan in 2015.

This time the city's minimum wage standard was adjusted from 1,560 yuan per month today to 1,720 yuan, an increase of 160 yuan, an increase of 10.3%.

The minimum wage for part-time employees has also been increased accordingly: the hourly minimum wage for part-time employees has been increased from 16.9 yuan per hour to 18.7 yuan per hour, an increase of 1.8 yuan; Hourly 40.8 yuan increased to 45 yuan per hour, an increase of 4.2 yuan.

[Implementation time] April 1, 2015.

6 regions raise minimum wage standards

While emphasizing "controlling the heights", all regions do not forget to "lower." Establishing a normal adjustment mechanism for the minimum wage has become a common goal and focus for all regions.

Among them, Sichuan proposed that in accordance with economic development, price changes and other factors, timely and prudently adjust the minimum wage standard to form a scientific and reasonable minimum wage growth mechanism, so that the ratio of the minimum wage standard in most regions to the average wage of local urban employees reached the national level Overall level. The relevant person in charge of the Sichuan Provincial Human Resources and Social Affairs Department said that this means that Sichuan will adjust the minimum wage every year and the growth rate will be no less than 14%.

Guangdong also requires the establishment of a minimum wage adjustment mechanism that is commensurate with economic development, and requires that the minimum wage in various regions of the province in 2015 reach more than 40% of the average wage of local urban employees.

According to incomplete statistics from Chinanews.com, since 2015, six regions, including Hunan, Hainan, Tibet, Tianjin, Shenzhen, and Beijing, have announced an increase in the minimum wage. Among them, Shenzhen has been raised to 2030 yuan / month, and the minimum wage has exceeded the first The two thousand yuan mark has become the highest area in the country.

Beijing has recently raised the minimum wage. Beijing announced on the 11th that it will adjust the minimum wage from 1,560 yuan per month to 1,720 yuan, an increase of 10.3%. The hourly minimum wage for part-time employees has been increased from 16.9 yuan per hour to 18.7 yuan per hour. Today, Beijing has the highest hourly minimum wage in the country.

14 regions raise minimum wage standards

Since 2015, 14 regions including Hunan, Hainan, Tibet, Tianjin, Shenzhen, Shandong, Shaanxi, Beijing, Shanghai, Tianjin, Gansu, Shanxi, Sichuan, and Inner Mongolia have announced an increase in minimum wage standards.

After the adjustment, the monthly minimum wage standards in Shenzhen and Shanghai were 2030 yuan and 2020 yuan respectively, and the minimum wage standards exceeded the 2,000 yuan mark. The highest hourly minimum wage is Beijing, which reached 18.7 yuan.

Judging from the gold content of the minimum wage standard, both Shanghai and Beijing have made it clear that the minimum wage standard does not include the various social insurance fees and housing provident funds payable by individuals, and employers should pay separately in accordance with regulations. The minimum wage is "higher in gold". ^[4]

28 regions raise minimum wage standards

Since December 2015, Jilin, Ningxia, and Chongqing have announced increases in minimum wages. Among them, the minimum wage in Jilin's first-rank area was adjusted from 1,320 yuan / month to 1,480 yuan / month.

; The minimum wage in Ningxia's first-class districts was adjusted from 1,300 yuan / month to 1,480 yuan / month; in Chongqing, the minimum wage standard in the first-grade area was adjusted from 1,250 yuan / month to 1,500 yuan / month. ^[5-6]

With the increase of the minimum wage standards in the above three regions, according to incomplete statistics, since 2015, 28 regions in the country, including Shanghai, Shenzhen, and Beijing, have announced an increase in the minimum wage standards, leaving only Liaoning, Hebei, Qinghai, and Jiangsu No adjustments were made at 4 locations.

Although the downward pressure on China's economy has remained high since 2015, the number of regions raising the minimum wage has increased significantly, and its number has far exceeded the whole of 2014. According to data from the Ministry of Human Resources and Social Security, in 2014, a total of 19 regions across the country adjusted the minimum wage. ^[6]

2016 Minimum wage adjustment 2016

As of May 26, 2016, 7 provinces including Shandong, Shanghai, and Tianjin have clearly raised the minimum wage standard, and 24 provinces have not announced an increase. In the past 2015, at least 28 regions across the country have raised the minimum wage standard, and the number of regions has been increased significantly more than in 2014.

At present, the overall state of the national minimum wage is: Shanghai's minimum wage is 2190 yuan per month, which is the highest in the country.

High, 240 yuan higher than Tianjin, which ranked second, and 295 yuan higher than Guangdong, which ranked third. The minimum wage in Qinghai is 1,270 yuan, the lowest in the country. ^[7]

The reason why Shanghai's minimum wage standard is so high seems to be related to the economic aggregate. Looking at Shanghai's total GDP in 2015 was close to 2.49 trillion yuan, which is 0.2 trillion yuan higher than that of Beijing, which is also a municipality (the total GDP was 2.29 trillion yuan in 2015). Correspondingly, the minimum wage is also high. Out of Beijing 470 yuan (Beijing 2015 minimum wage standard is 1,720 yuan). The gap between the minimum wage standards in Beijing and Shanghai is not small. ^[7]

Compared with Tianjin, which is also a municipality directly under the Central Government, the minimum wage gap in Shanghai is not as large as in Beijing. Although Tianjin s total GDP in 2015 was only 1.65 trillion yuan, Shanghai was 0.84 trillion yuan higher than Tianjin, while Tianjin s minimum wage in 2016 was 1950 yuan, and Shanghai was only 240 yuan higher than Tianjin. ^[7]

Chongqing, which is also a municipality, is even less optimistic. Chongqing s total GDP in 2015 was 1.57 trillion yuan, and its economy was equivalent to Tianjin, with a gap of 0.92 trillion yuan from Shanghai. However, Chongqing s minimum wage in 2016 was only 1,500 yuan, and Tianjin was 450 yuan higher than Chongqing. Shanghai is 690 yuan higher than Chongqing. ^[7]

If we simply analyze the total economic data, compared with Shanghai, the minimum wage standards in Beijing and Chongqing still have room to rise.

In fact, Shanghai not only has the highest minimum wage standard in the country, it also has the highest gold content. The gold content here refers to the net income at hand. Shanghai clearly stipulates that the monthly minimum wage standard does not include social insurance premiums and housing provident funds paid by individuals in accordance with the law; wages to extend legal working hours; mid-shift, night shift, high temperature, low temperature, underground, toxic and harmful special working conditions and conditions, allowance ; Food subsidies (meal stickers), commute transportation subsidies, housing subsidies. ^[7]

It is worth noting that in the list, the minimum wage in Qinghai Province is the lowest in the country, which is 1270 yuan, which is 920 yuan different from the highest in Shanghai. Looking at the total GDP of Qinghai Province in 2015, it was 0.24 trillion yuan, the second lowest in the country. It seems that the minimum wage is also closely related to the local economic growth rate. ^[7]

In February 2015, Beijing, Tianjin, Shenzhen, Hunan, Hainan, and Tibet announced an increase in the minimum wage. The 2014 Statistical Communiqué on the Development of Human Resources and Social Security Causes issued by the Ministry of Human Resources and Social Security on May 28, 2015 shows that in 2014, a total of 19 regions across the country adjusted the minimum wage standard, with an average increase of 14.1%. ^[8] Guangdong Province has currently issued four types of minimum wage standards. ^[1]

On July 1, Sichuan and Inner Mongolia raised their local minimum wage standards. Among them, the adjusted monthly minimum wage in Sichuan is 1500 yuan, and the minimum wage for part-time working hours is 15.7 yuan. The minimum wage in Inner Mongolia has been raised from 1,500 yuan to 1,640 yuan per month, part-time. The minimum wage for working hours was raised from 12.2 yuan per hour to 13.3 yuan.