Guangdong to raise minimum wage by 19%

Wanr China Times, Xinhua 2015-02-28

Workers line up to receive their wages in Foshan, Guangdong province
ahead of the Chinese New Year holiday, Jan. 16, 2011. (File photo/Xinhua)

Southern China's Guangdong province is to raise the minimum wage by an average of 19% from May to combat a labor shortage and rising living costs.

The pay raises will go into effect in all parts of Guangdong except Shenzhen on May 1, the provincial department of human resources and social security said in a press release on Thursday. Guangdong last raised the minimum wage in May 2013.

The minimum monthly pay for full-time workers in Guangzhou, the provincial capital, will be raised by 22.2% to 1,895 yuan (US$300), the highest of four levels in the province.

Authorities in Shenzhen, which borders Hong Kong, separately announced a raise in the minimum monthly wage for full-time workers by 12.3% to 2,030 yuan (US$320), the highest nationwide, from next month.

China is facing severe labor shortage due to tough birth control policies over the past three decades. Rising labor costs, coupled with falling orders, have left many manufacturers struggling and driven some to relocate to Southeast Asian countries.