Friday, June 8, 2012

Who has the final say on the standard formulation of the minimum wage on earth?

Who has the final say on the standard formulation of the minimum wage on earth?
News pegging
Since 2010, 27 province-governed municipalities such as Beijing, Shanghai, Guangzhou have raised or planned to raise the lowest wage standard one after another. Raise the lowest wage standard, different characteristics appear in the city of the western and eastern: Having carried on structured rise in the eastern city, the range of mountain area is large, the coastal range is small; The western city has increased and raised the range greatly.
However, raise the lowest wage standard, the higher the better? What influence will be produced to enterprises? There is the lowest wage standard, enterprise's boss can bring and act as the standard salary, and no longer get a salary raise for the staff?
Ask:
Who has the final say on making the standard?
Editor: Thousands of yuan for some urban minimum wage, but some have only one hundred yuan of Forth Five-Year Plan Period. Who has the final say on the lowest wage standard on earth? Is it enterprise's main fact and result which the worker consults?
Reporter: Most low determination of wage standard have one calculating systemming strict, which it is people have the final say, not also enterprise's main fact and result which the worker consults.
A relevant comrades in charge introduce, according to " regulation of the minimum wage " in human resources and social security, confirm the factor to be considered of the lowest wage standard is as follows, the expenditure of living expenses of local urban residents, worker individuals pay social insurance premium, housing public accumulation fund, worker's average salary, rate of unemployment, economic development level etc..
The definite method mainly has proportion laws and Engel coefficient laws. Proportion law is to confirm a proportion of lowest per capita income one as the poor household, and then count its per capita living expenses expenditure level, is multiplied by supporting the coefficient of every persons who obtain employment, add one and change and count. The law of Engel coefficient is to calculate the lowest food expenditure standard according to relevant data, divided by Engel coefficient, is and then multiplied by and supported the coefficient, in addition, adjust and count.
Give one example: If some the intersection of place and the intersection of lowest income and every month living cost, per person of group, expenditure 420, every person who obtain employment it supports the coefficient to be 1.87, the lowest food expenses are 254 yuan, Engel coefficient 0.604. Then, the lowest wage standard calculated according to proportion law =420* 1.87+ adjusts the factor; The lowest wage standard calculated according to Engel coefficient law =254�� 0.604* 1.87+ adjusts the factor. Adjust the factor to mainly consider the local individual pays social insurance premium and housing public accumulation fund,etc.. Every province-governed municipality confirms the last standard according to these methods.
However, in some cases, the labour remuneration is not restrained by the minimum wage, during it is not common and injured that for instance worker, the retired personnel who enjoy treatment of the endowment insurance obtain employment etc. again.
Editor: Be influenced by international financial crisis in 2009, a lot of provinces show that postpone adjusting the lowest wage standard. 27 province-governed municipalities raise or plan to raise the lowest wage standard this year. How was the frequency that minimum wage raises made?
Reporter: The lowest wage standard should be adjusted once at least every two years. " the the intersection of minimum wage and regulation ", implement, 2004, 2005, 2006 these 3 years, every province-governed municipality changed 1.9 times on average 2004. 29 province-governed municipalities raised the lowest wage standard in 2007, 20 province-governed municipalities raise the lowest wage standard in 2008. At the end of 2008, because are struck by the international financial crisis, enterprises manage and face the great pressure, the intersection of people and society department releases the notice, demand to postpone adjusting enterprise's lowest wage standard, so only a few cities will adjust in 2009. Become better with the economic recovery, all parts raise the lowest wage standard in succession this year. Some provinces and cities still try to set up the linkage mechanisms of minimum wage and price-level, this still means the frequency that the lowest wage standard adjusts perhaps.

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