Guangdong Province promises increase in minimum wage by May. (Photo : www.betweentwocities.com)
China’s southern province of Guangdong is set to increase employees' minimum wage in May by 19 percent amid the rising living costs and labor shortage all over the province except Shenzen.
According to a press release from the province's department of human resources and social security on Thursday, the planned minimum wage hike would take effect on May 1, 2015.
This change in the province's wage policy comes exactly two years after the provincial government last decided to elevate Guangdong residents' income through a similar move.
As of current, the minimum salary for full-time employees in the province is set to increase up to 1,895 yuan ($300), more than 22 percent higher than the former rate of 1,380 yuan ($220).
This will take effect in all municipalities of Guangdong except Shenzen, which announced a separate minimum wage boost. Shenzen's minimum wage would soon be at 2,030 yuan ($320), a 12.3-percent increase from its past rate of over 1,800 yuan ($299), and would take effect next month.
Back in 2013, Shenzen's minimum wage was at 1,600 yuan ($255.29).
Due to the announcement, Shenzen still holds the record for having the country's highest salary rate with its new rate.
According to recent reports, China is experiencing a shortage in workers since the long-running stiff one-child policy took its toll on the country after being in effect for the past three decades.
Because of this, labor costs skyrocketed and left many companies struggling to get by, with some even deciding to relocate to other Southeast Asian countries.
