The wage level in china has persistently shown an upward trend for the past twenty years (Chiewping, 2009). The economy has developed in a recommendable way, thus enabling the private sector to create several job opportunities. Disparities, however, among industrial sectors, geographical regions and among regular workers have increased considerably. This has resulted to the widening of the gap between the poor and the rich. The high cost of living has caused the wage increment for the lowest paid workers in china to be severely eroded (Yongnian, 2013).
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The average working week in China has eight hours per day and five days in a week, amounting to a total of forty hours. 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:
Minimum cost of living for local workers and their dependents.
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