China and minimum wage - Research Paper Example

The 1994 labor act specifies that work done after the normal standard working time shall be paid as overtime. The overtime, however, should not exceed three hours in a single day (Chiewping, 2009). Wages should be paid to workers on a monthly basis and in a legal tender. Wage deduction and late payment of workers is firmly prohibited. The labor law on article 48 specifies that the statutory minimum wage should be sufficient enough to sustain the needs of the employee. In March 2004, the ministry of social security and labor in China executed the minimum wage doctrine.

The regulations were developed to establish a framework for adjusting and calculating the minimum wage (Zhao, 2010). The guidelines stated that the government should adjust and determine the cyclic minimum wage for full time employees by considering the following factors: An extensive collection of minimum wage levels exists across the whole country since local conditions determine the calculations. Coastal regions are characterized by high minimum wages due to their economic strength. The western provinces together with the central regions on the other hand are characterized by low minimum wages.

In an attempt to attract migrant labor force, governments in remote regions such as Xinjiang and Tibet have established high minimum wages levels. On May 2013, Shanghai recorded the highest monthly wage level with Shenzhen closely following behind. Anhui region located in the central province recorded the least minimum wage (Chiewping, 2009). Regulations endorse that 40 to 60% of the regular monthly wage should be set as the minimum wage. Local governments should also embark on the task of carrying out an adjustment review regularly.

In the middle of the international economic crisis in 2008, however, the government froze all the increases made on minimum wages (Yongnian, 2013). In