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Article 1. In order to safeguard the legitimate rights and interests of the laborers in getting labor remuneration, ensure the basic necessities of the laborers and their family members, the present Provisions are formulated in accordance with the Labor Law and other relevant regulations of the State Council. Article 2. The present Provisions shall be applicable to the enterprises, private non-enterprise entities, individual industrial and commercial households with employees (hereinafter referred to employing entities) and the laborers who have formed a labor relationship with them. The state organs, public institutions and social bodies and the laborers who have formed a labor relationship with them shall follow the present Provisions. Article 3 .The term "the standards on minimum wages" mentioned in the present Provisions refers to the minimum labor remuneration that shall be paid by the employing entities in accordance with the law under the precondition that the laborers have provided normal labor within the statutory working hours or within the working hours stipulated in the labor contracts concluded in accordance with the law. The term "normal labor" mentioned in the present Provisions refers to the labor undertaken by a laborer, according to the contract concluded in accordance with the law, within the statutory working hours or within the working hours stipulated in the contract. A laborer's enjoying paid annual vocation, home leave, marriage or funeral leave, maternity leave and contraceptive operation leave and his (her) participating in any social activities in the statutory working hours shall be deemed as offering normal labor. Article 4. The administrative departments of labor and social security of the people's governments at or above the county level shall be responsible for the supervision and inspection over the employing entities' implementation of the present Provisions within their respective administrative division. The labor unions of all levels shall, in accordance with the law, conduct supervision over the implementation of the present Provisions. Where a labor union finds that any employing entity pays employees wages in violation of the present Provisions, it shall have the power to demand the administrative department for labor and security to deal with the case. Article 5. As a general rule, the standards of minimum wages appear in two forms ¨C the standard of monthly minimum wage and the standard of hourly minimum wage. The standard of monthly minimum wage applies to full-time employees while the standard of hourly minimum wage applies to non-fulltime employees. Article 6. When determining and adjusting the monthly minimum wage standard, one should take into consideration the factors such as the minimum costs of living necessities of the local employees and the people supported by them, the urban residents' consumption price index, the social insurance premiums and the public accumulation fund for housing construction paid by the employees themselves, the average wage of the employees, the level of economic development and the status quo of employment. When determining and adjusting the hourly minimum wage standard, one shall take into consideration such factors ¨C the basic pension insurance premiums and the basic medical insurance premiums that shall be paid by the entity ¨C on the basis of announced standard of monthly minimum wage. In addition, one shall appropriately take into consideration the disparities between the non-full time laborers and the fulltime laborers in the aspects of working stability, condition and intensity, and welfare at the same time. Refer to the attachment for the specific calculating methods for the monthly minimum wage standard and the hourly minimum wage standard. Article 7. Different administrative areas within a province, autonomous region or municipality directly under the Central Government may adopt different standards of minimum wages. Article 8. The program for determining and adjusting the standards on minimum wages shall be formulated by the administrative department of labor and social security of the people's government of a province, autonomous region or municipality directly under the Central Government in consultation with the labor union, the federation of enterprises (or the association of entrepreneurs) of the same level, which shall be reported and submitted to the Ministry of Labor and Social Security. Such a program shall include the basis, applicable scope, standards and explanations about the determination and adjustment of the minimum wages. After receiving the program, the Ministry of Labor and Social Security shall collect opinions of the China Labor Union and the China Federation of Enterprises (or the China Association of Entrepreneurs). The Ministry of Labor and Social Security may provide advice on its revision. If it fails to provide any advice on revision within 14 days from the day when it receives the program, it shall be deemed that it has granted consent. Article 9. The administrative department of a province, autonomous region or municipality directly under the Central Government shall report its program about the standards on minimum wages to the people's government of this province, autonomous region or municipality directly under the Central Government, and shall, within 7 days from the day after the program is approved, announce it through the bulletin of the local government and at least one newspaper widely circulated in the region. The administrative department of labor and social security shall report the standards on minimum wages to the Ministry of Labor and Social Security within 10 days from the day after it is announced by the administrative department of the province, autonomous region or municipality directly under the Central Government. Article 10. After the standards on minimum wages has been announced for implementation, they shall be adjusted in good time where the related factors prescribed in Article 6 of the present Provisions have changed. The standards on minimum wages shall be adjusted at least once in every two years. Article 11. Within 10 days from the day after the standards on minimum wages are announced, an employing entity shall announce the standards to all the laborers thereof. Article 12. In the event that a laborer has provided normal work, after deducting the following items, the wage paid by the employing entity shall not be less than the local standards on minimum wage: (1) Wages paid for extra work done after the legal working hours; (2) Allowances given for the swing shift, night shift, and for working under special environmental conditions such as high temperature, low temperature, shaft, poison and detriment; and (3) The welfare treatments to laborers prescribed in the laws, regulations and by the state. On the basis of the scientific and reasonable labor quota, an employing entity that adopts the way of paying wages by piece or by deducting a percentage shall not pay the laborers less wages than the corresponding standard minimum wages. This Article shall not apply in the event that laborer, for his own reason, fails to provide normal labor within the statutory working time or within the working time stipulated in the lawfully concluded labor contract. Article 13. Where an employing entity violates Article 11 of the present Provisions, it shall be ordered to get right by the administrative department of labor and social security. If it violates Article 12 of the present Provisions, it shall be ordered to make up the wages owing to the laborers by the administrative department of labor and social security, and may be ordered to pay them compensations in the sum of one to fives times of the wages owed within a time limit. Article 14. Where there arise any disputes over the standards on minimum wages between a laborer and an employing entity, it shall be tackled under the provisions on labor disputes. Article 15. The present Provisions shall be implemented as of March 1, 2004. The Provisions on Minimum Wages in Enterprises promulgated by the former Ministry of Labor on November 24, 24, 1993 shall be abolished simultaneously. Attachment: The Methods For Calculating Minimum Wages ATTACHMENT: THE METHODS FOR CALCULATING MINIMUM WAGES 1. THE FACTORS TO BE TAKEN INTO CONSIDERATION WHEN DETERMINING THE STANDARDS ON MINIMUM WAGES When determining the standards on minimum wages, one shall, generally speaking, take into consideration factors such as the living costs of urban residents, the social insurance premium and the public accumulation fund for housing construction paid by the employees themselves, the average wage of the employees, the rate of unemployment and the level of economic development. The formula may be: M = f (C, S, A, U, E, a ) M: the standards on minimum wages C: the average living costs of urban residents; S: the social insurance premiums and the public accumulation fund for housing construction paid by the employees themselves; A: the average wage of the employees; U: the unemployment rate; E: the level of economic development; a: the adjustment factors. 2. THE GENERAL METHODS FOR DETERMINING THE STANDARDS OF MINIMUM WAGES (1) The proportion method, i.e. to determine a certain proportion of families with average minimum incomes to be poverty families according to the investigation materials of the family livelihood of urban residents, to calculate the average living costs of the poverty families, to multiply the average living costs of the poverty families by the coefficient of the people supported by each employee and to plus an adjustment. (2) The Engel Coefficient method, i.e. to calculate the standards on minimum expenses for food according to the annual standard cookbook and the standard quantities of food taken by people offered by the National Nutrition Academy of Nutrition, to divide the standards on minimum expenses for food by the Engel Coefficient, to work out the standards on minimum living costs, to multiply the minimum living costs by the coefficient of people supported by each employee and to plus an adjustment. After working out the standards on monthly minimum wage by the above-mentioned methods, one shall take into consideration the social insurance premiums paid by the employees themselves, the public accumulation fund for housing construction paid by the employees themselves, the average wage of the employees, social assistance grants and the standards on unemployment premiums, the status quo of employment and the level of economic development. For example, if, in a certain region, the minimum monthly living costs of persons within the minimum income is 210 yuan, the coefficient of the people supported by each employer is 1.87, the minimum expenses for food is 127 yuan, the Engel Coefficient is 0.604, the average wage is 900 yuan. 1. The standard on monthly minimum wage worked out by the proportion method is: The monthly minimum wage = 210 x 1.87+ a = 393+a (yuan)(1) 2. The monthly minimum wage worked out by the method of Engel Coefficient is: The monthly minimum wage = 127/0.604 x 1.87 + a = 393 + a (yuan)(2) In the formulas (1) and (2) the adjustment "a" mainly include the includes the expenses for the pension, unemployment and medical insurance premiums and the public accumulation fund for housing construction. In addition, as it is universally considered that the monthly minimum wage is equivalent to 40-60% of the average monthly wage, the monthly minimum wage of this region shall be ranged from 360 yuan to 540 yuan. The standard of the hourly minimum wage = {(the standard of the monthly minimum wage/20.92/8) x (1 + the summation of the rates of the basic pension insurance premium and the basic medial insurance premium that shall be paid by an entity)} x (1 + the floating coefficient) The determination of the floating coefficient shall mainly take into consideration the disparities between the fulltime employees and the non-fulltime employees in the aspects of working stability, conditions and intensity and welfares. Each region may reasonably determine the standards on monthly and hourly minimum wages according to the above-mentioned calculating methods and in combination of the local actual circumstances. |
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