Whilst the current public sector pension reforms are leading to overall salary rises in China’s administrative units, the city of Shenzhen, symbol for the ‘workshop of the world’ is also raising wages with a 12.28% minimum wage hike set for March 01, 2015, representing the biggest jump in the country. The economic impact of this move will be big, even if some believe the level is not enough to live decently.
Soon to move to 2030 yuan per month (almost 290 euros), making 18.5 yuan per hour (2.62 euros), Shenzhen’s minimum wage has risen by a factor of 8 over the last 22 years. Sectors affected include the food industry and the wood and leather industry, which were previously paying 1855 yuan per month whilst the plastics industry paid 1897 yuan per month.
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