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The three levels of minimum monthly wages in Northwest China's Shaanxi province rose by 120 yuan to 1,800 yuan, 1,700 yuan and 1,600 yuan starting from May 1.

According to the country's Employment Promotion Plan, minimum wages are supposed to increase in accordance with local living standards by at least 13 percent through 2015 and be no less than 40 percent of the average local wages.


Instead, the task of setting minimum wages is delegated to the local governments. Each province, municipality, or region sets its own minimum wage in accordance with its own local conditions. (China Labour Newspaper, 11 January 1994, p. 2) In 2016, the average growth rate dropped to 14.5 percent from 17 percent in 2015. The minimum wage, the lowest hourly amount that an employee may be paid for their labor, is determined by both state and Federal labor laws in the United States.Under the Federal Fair Labor Standards Act, states and localities are permitted to set their own minimum wage rates, which will take precedence over the Federal minimum wage rate if they are higher.
Currently, the minimum monthly wages of six regions, including Shanghai, South China's Guangdong province, Beijing, Tianjin, East China's Jiangsu province and East China's Zhejiang province, have surpassed 2,000 yuan. The Guangdong provincial government announced that it would maintain 2015 minimum wage levels in 2016 and 2017, and the minimum wage growth rate in Shanghai has decreased from 12.3 in 2015 to 8.4 percent in 2016. On April 26, China’s Ministry of Human Resources and Social Security released the Minimum Wage Standards of All Regions in China as of March 31, 2020. However, the growth rate of minimum wage levels decreased in 2016, reflecting the Chinese government’s effort to reduce pressure on enterprises resulting from the uneven growth between labor costs and production rates.[1][2][3].

Guizhou province stands out as the region carrying the most significant hike of minimum wage levels in 2016, 55 percent.

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