Shanghai Municipality, Guiding Opinion on Strengthening Internal Wage Distribution of Enterprises

Issued: April 30 2007

Main Contents: Enterprises shall improve the mechanism for normal increases in wages. Where an enterprise cannot raise wages for staff and workers in a particular year due to various reasons, it shall explain the circumstances to its labour union and workers' representatives. When arranging for wage increases, preference shall be given to front-line workers whose wage rates are below 50% of the average wage of staff and workers of the municipality, and to those with no pay rises or with a slow increase in wages for at least the past two years. Where there are no pay rises for front-line workers, operators may not increase their own wages. Wage distribution shall be made open and transparent, and the method of evaluating operators' income shall be disclosed to staff and workers in an appropriate manner (Article 4).