Laws & Regulations

The Circular on the Guidelines for the Enterprises' Wage Increasing Rate in Shanghai Municipality in 2007

Document No 14(2007)
Issued by Division of Planning and Wages,
Shanghai Municipal Labour & Social Security Bureau, March 21, 2007

To all the Municipal Committees, Offices and Bureaus, the Holding (Group) Corporations, the Group Corporations, the District/County Labour & Social Security Bureaus, the concerned State-Owned-Enterprises:

In light of Shanghai’s economic growth, consumer price index, employment and labor cost in 2007 and the worker’s wage level in 2006, the suggestions on the Guidelines for the Enterprises’ Wage Increasing Rate in Shanghai Municipality in 2007 are as followings:

Ⅰ. The Guideline for the Average Increasing Rate of the Enterprises' Wage in Shanghai Municipality
The Guideline for the average increasing rate of the enterprises' wage in Shanghai Municipality in 2007 is 9%, with the ceiling increasing rate 12%, and the bottom increasing rate 3%.

II.  Guiding Suggestions
The enterprises with sound business operations and enhancing economic performance, in case their wage level is around the Municipal average wage level, may determine their worker’s wage increasing rate referring to the Guideline for the Average Wage Increasing Rate; the enterprises with average wage level around 50% of the Municipal average wage level, may determine their worker’s wage increasing rate as per the Guideline for the Ceiling Wage Increasing Rate; and those enterprises with average wage level around two times of the Municipal average wage level, may determine their worker’s wage increasing rate as per the Guideline for the bottom Wage Increasing Rate.
The enterprises that have negative growth in economic performance or suffer from deficit, may determine their worker’s wage increasing rate as per the Guideline for the bottom Wage Increasing Rate.

The Labour and Social Security Administrations at all levels, the Holding (group) Corporations and the Group Corporations shall strengthen the guidance on wage increasing rate of the enterprises within their jurisdictions. Referring to the Guidelines for wage increase and labour cost in the respective industries, the enterprises shall rationally make wage adjustment arrangement in 2007 in light of its actual situations, and meanwhile rationally determine the wage standard of the personnel engaged in business operations and management, specialized technology, manufacturing and service, etc. referring to the wage standard guidance in the labour market. Both the enterprises and the workers shall actively define the wage distribution system, form of distribution and wage increasing rate thereof through collective bargaining.

Document No 14(2007) Issued by Division of Planning and Wages, Shanghai Municipal Labour & Social Security Bureau, March 21, 2007 To all the Municipal Committees, Offices and Bureaus, the Holding (Group) Corporations, the Group Corporations, the District/County Labour & Social Security Bureaus, the concerned State-Owned-Enterprises: In light of Shanghai’s economic growth, consumer price index, employment and labor cost in 2007 and the worker’s wage level in 2006, the suggestions on the Guidelines for the Enterprises’ Wage Increasing Rate in Shanghai Municipality in 2007 are as followings: Ⅰ. The Guideline for the Average Increasing Rate of the Enterprises' Wage in Shanghai Municipality The Guideline for the average increasing rate of the enterprises' wage in Shanghai Municipality in 2007 is 9%, with the ceiling increasing rate 12%, and the bottom increasing rate 3%. II. Guiding Suggestions The enterprises with sound business operations and enhancing economic performance, in case their wage level is around the Municipal average wage level, may determine their worker’s wage increasing rate referring to the Guideline for the Average Wage Increasing Rate; the enterprises with average wage level around 50% of the Municipal average wage level, may determine their worker’s wage increasing rate as per the Guideline for the Ceiling Wage Increasing Rate; and those enterprises with average wage level around two times of the Municipal average wage level, may determine their worker’s wage increasing rate as per the Guideline for the bottom Wage Increasing Rate. The enterprises that have negative growth in economic performance or suffer from deficit, may determine their worker’s wage increasing rate as per the Guideline for the bottom Wage Increasing Rate. The Labour and Social Security Administrations at all levels, the Holding (group) Corporations and the Group Corporations shall strengthen the guidance on wage increasing rate of the enterprises within their jurisdictions. Referring to the Guidelines for wage increase and labour cost in the respective industries, the enterprises shall rationally make wage adjustment arrangement in 2007 in light of its actual situations, and meanwhile rationally determine the wage standard of the personnel engaged in business operations and management, specialized technology, manufacturing and service, etc. referring to the wage standard guidance in the labour market. Both the enterprises and the workers shall actively define the wage distribution system, form of distribution and wage increasing rate thereof through collective bargaining.

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