Minimum wage may rise

Shenzhen is considering raising its minimum wage by as much as 23%, which could be an indicator of coming cost pressure for manufacturers in South China, the Financial Times reported. The Shenzhen labor bureau is weighing up increasing the current equivalent rate of US$86 a month to US$100 or US$106 inside the special economic zone. Shenzhen already has a higher minimum wage than other Pearl River Delta cities. Foreign-invested firms tend to pay more than the minimum rate to counter a labor shortage. Basic living expenses have increased in recent years, and workers now pay into health insurance and social security plans that many never would have in the past.