A think-tank study has highlighted the growing problems faced by
low-income urban residents, particularly those in the country's
biggest cities.
In Beijing, the minimum wage in 2004 was 545 yuan (US$67.2) per
month, just 20 percent of the city's average income. Added to this,
the amount earned was barely half the average monthly living
expenditure of 1017 yuan (US$127).
In Shanghai the situation was not much better: The minimum wage
was 635 yuan (US$78.2), just 25 percent of the city's average
income.
In 1994 the disparity was less marked, standing at 39 percent
and 36 percent in Beijing and Shanghai respectively.
Between 1994 and 2004, average incomes in the two municipalities
grew at an annual rate of about 15 percent, while China's economy
grew on average 9.5 percent.
Researchers, from the Income Research Institute of the Ministry
of Labor and Social Security, based the report on statistics from
the 1994-2004 period.
"We are quite concerned that low-income groups have not
benefited equally from the country's economic achievements," Liu
Junsheng, one of the report researchers, told China
Daily.
Liu said in several provinces, such as Jiangxi and Qinghai, the minimum wage level has not risen
at all in the 10-year period, after price rises have been factored
in.
"This has further enlarged the income gap, which may become a
threat to social harmony."
Liu said minimum wage levels nationwide were "too low" and "our
strong recommendation is to give them a quick hike."
China has no nationally prescribed minimum wage, and instead it
is up to provincial-level governments to set and adjust levels.
Widely accepted international standards say that the minimum
wage should be between 40-60 percent the average income. The study
shows that China is falling well short of this standard.
"This level of income cannot sustain basic living needs," said
Liu.
The researchers found that the monthly minimum wage in 2004 in
25 provinces, autonomous regions and municipalities was less than
local average monthly living expenditure.
The situation was most acute in Beijing with a gap of 472 yuan
(US$58), while in Shanghai it reached 418 yuan (US$51). In economic
hubs such as Zhejiang and Guangdong provinces the gap ranged from
200-300 yuan (US$25-36).
"The gap means that the families of the minimum earners cannot
meet their basic living needs," said Liu.
Several days ago, the institute issued a warning that the
country was currently in a state where the government should be on
high alert. It said that by 2010 the disparity could become
"unacceptable."
(China Daily May 16, 2006)