Minimum wage

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					Minimum wage
Order of the Minister of Labor and Social Security
(No. 21)
????"Minimum wage" was December 30, 2003 by the Ministry of
Labour and Social Security Ministerial Meeting of the 7th, is hereby
promulgated, March 1, 2004 shall come into force.
Minister Zheng Silin
20, 2004
Minimum wage
????The first workers to labor remuneration in order to safeguard the
legitimate rights and interests of individual workers and their
families protect the basic livelihood of the State Council according
to the Labor Law and relevant provisions of the enactment of this
????These rules shall apply to enterprises in the PRC, private
non-enterprise units, individual businesses with employees
(hereinafter referred to as employing units) and the workers formed a
labor relationship with them.
????State organs, institutions, social groups and workers in a labor
relationship, in accordance with the regulations.
????Article The term minimum wage, is the legal working hours of
workers in the labor contract or the law agreed to provide the normal
working hours, working under the premise of an employing unit shall
pay a minimum remuneration.
????The term normal labor, refers to the worker by the labor contract
agreed upon according to law, the statutory working hours or
employment contract, working hours in labor. If an employee entitled
to paid annual leave, home leave, marriage and funeral leave,
maternity (middle) leave, leave and other countries of birth control
required surgery during the holidays and statutory working hours to
participate in social activities according to law, as provided normal
????Article Local people's governments above the county level labor
and social security administrative departments responsible for the
implementation of the administrative regions of the provisions of the
employer to conduct supervision and inspection.
????Trade union organizations at all levels of implementation of the
provisions of this law to supervise the payment of wages to the
Employer in violation of the provisions, the right to request the
local labor security administrative departments.
????Article V General to take the minimum wage and hour monthly
minimum wage in the form of minimum wage. Monthly minimum wage for
full-time employment of workers, minimum wage standards for part-time
employment for workers.
????And adjustment as defined in Article VI of the monthly minimum
wage, should refer to local employment and their family members they
support the minimum cost of living, urban consumer price index,
individual workers to pay social insurance and housing accumulation
fund, average wage level of economic development, employment
conditions and other factors.
????Determine and adjust the minimum wage standards should be
promulgated on the basis of the minimum wage, consider the unit should
be the basic insurance and basic medical insurance premium factors,
due consideration should also work part-time stability of workers in ,
labor conditions and labor intensity, welfare and other aspects of the
differences between full-time employment.
????Monthly minimum wage and minimum wage standards for the specific
calculation method of the annex.
????Article VII of provinces, autonomous regions and municipalities
within the different administrative regions can have different minimum
????Article VIII of the minimum wage determination and adjustment
programs, the provinces, autonomous regions and municipalities in
conjunction with the labor unions and social security departments,
business federations / associations of entrepreneurs to develop and
submit programs prepared by the Ministry of Labor and Social Security.
Program includes a minimum wage fixing and adjustment of the basis,
scope, development of standards and instructions. Ministry of Labor
and Social Security, after receiving the programming should seek the
ACFTU, China Enterprise Confederation / entrepreneur associations.
????Ministry of Labor and Social Security may propose revisions to the
program if the program is not made within 14 days after receipt of
revisions, as agreed.
????Article IX of provinces, autonomous regions and municipalities
directly under the labor security administrative department shall plan
the minimum wage in the region of the province, autonomous region,
People's Government, and within 7 days after the approval of the local
official gazette and at least one local newspaper to publish full .
Provinces, autonomous regions and municipalities directly under the
labor security administrative department shall, within 10 days after
the release of the minimum wage will be reported to the Ministry of
Labor and Social Security.
????Article released after the implementation of the minimum wage, as
required by the provisions of Article VI of the relevant factors
change, should be timely adjusted. At least the minimum wage be
adjusted once every two years.
????Article XI The employer should, the minimum wage within 10 days
after the release of the standard units of all working people to the
????Article XII in providing normal work situation, the employer
should pay wages to workers after removing the following items shall
not be less than the local minimum wage standards:
????(A) extend the working hours of wages;
????(B) of the middle shift, night shift, high temperature, low
temperature, underground, hazardous and other special working
environment, conditions, allowances;
????(C) laws, regulations, and the state welfare workers and so on.
????Piecework wages, salary or commission wages in the form of
employers, labor quota in the scientific and rational basis, the wage
paid to laborers shall not be lower than the minimum wage.
????I caused the workers in the statutory working hours, or according
to the law of the labor contract agreed to provide normal working
hours does not work, does not apply to this article.
????Article XIII employer violates the provisions of Article XI, the
labor security administrative department shall order rectification
within a time limit; violation of the provisions of Article XII, the
labor security administrative department shall order a replacement
within the time limit wages owed to workers, and may be ordered to pay
owed by 1 to 5 times the pay of workers compensation.
????Article XIV between workers and employers on the implementation of
the minimum wage dispute handled by the relevant provisions of the
labor dispute.
????Since the provisions of Article XV 1 March 2004 onwards. November
24, 1993 issued by former Ministry of Labour, "Minimum Wage
Regulations," shall be repealed simultaneously.
????Attachment: Annex minimum wage calculation method
Minimum wage calculation method
????First, determine the minimum wage should be taken into account
????General considerations for determining the minimum wage of urban
residents living expenses, and individual workers to pay social
insurance, housing provident funds, average wages, unemployment,
economic development and other factors. Formula can be expressed as:
????M = f (C, S, A, U, E, a)
????M minimum wage;
????C urban residents per capita cost of living;
????S individual workers pay social insurance premiums, housing
provident fund;
????A average wage;
????U unemployment rate;
????E level of economic development;
????a adjustment factor.
????Second, determine the common method of minimum wage
????1. Method that is based on the proportion of urban household
survey data to determine a certain percentage of the lowest per capita
income households to poor households, the statistics of the cost of
living of poor households per capita expenditure level of maintenance
employed multiplied by the coefficient of each, plus an adjustment .
????2. Engel coefficient is provided based on the annual National
Nutrition Institute of Standards and standards of the food spectrum of
food intake, combined with the standard market price of food to
calculate the minimum standards of food expenditures, divided by the
Engel coefficient, for the lowest cost of living standard, multiplied
by each the maintenance of a factor employed, plus an adjustment.
????The above method to calculate the monthly minimum wage, and then
consider individual workers to pay social insurance, housing provident
funds, the level of average wages, social benefits and unemployment
insurance payment, employment status, level of economic development,
the necessary amendments.
????For example: the lowest income group in an area per capita living
expenditure of 210 yuan per month, each employed a maintenance factor
of 1.87, the lowest food costs 127 yuan, the Engel coefficient was
0.604, the average wage is 900 yuan.
????1. Calculated according to the proportion method monthly minimum
wage in the region are:
????Monthly minimum wage = 210 ¡Á 1.87 + a = 393 + a (yuan) (1)
????2. Engel coefficient calculated by the monthly minimum wage for
the region:
????Monthly minimum wage = 127 ¡Â 0.604 ¡Á 1.87 + a = 393 + a (yuan) (2)
????Equation (1) and (2) the adjustment factors in a consideration of
local people to pay old-age, unemployment, medical insurance and
housing accumulation fund and other expenses.
????Also, in accordance with international standards of the monthly
minimum wage in general the average monthly wage is equivalent to
40-60%, the monthly minimum wage in the region should be in the range
360 -540 yuan.
????Hourly minimum wage standard = ¡²(monthly minimum wage ¡Â 20.92 ¡Â 8)
¡Á (1 + units shall pay the basic old-age insurance, basic medical
insurance and the proportion)¡³ ¡Á (1 + float coefficient)
????Variable coefficients of the main considerations workers work
part-time employment stability, working conditions and labor
intensity, welfare and other aspects of the differences between
full-time employment.
????Light of the above methods can be measured throughout, according
to local conditions reasonably determine the month, the hourly minimum
????(Source: Ministry of Labour and Social Security website)