Shenzhen Government Lowers Average Salary Benchmark

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SHENZHEN, Jul. 23 – The Labor and Social Security Bureau has lowered the average pay scale in the city for the first time since 1999 in a salary reference document for employers released last Monday.

According to Shenzhen Daily, the average salary in the city decreased by 3.8 percent to RMB2,750 per month compared to last year’s figures although low-level income pay increased by 7 percent to RMB1,102.

The pay scale adjustments are meant to help domestic companies cope better with the financial crisis while also reflecting government efforts to safeguard low-income workers by slowly narrowing the income gap.

The Shenzhen government based the changes on 566 types of jobs and a survey of 1,432 firms working in different sectors. The highest salary was pegged at RMB23,700, a significant drop of 8.5 percent from previous levels while the mid-level average salary was RMB2,460.

“Our payment adjustment policy is to control the high-income group, expand the medium-income group and protect the low-income group. It’s a way to narrow down the income gaps,” Wu Liyong, director of the income division of Shenzhen Labor and Social Securities Department, was quoted by Xinhua.

The largest income gap between employees was found in the financial sector wherein top salaries could be 80 times the lowest salary, according to the labor bureau.

Shenzhen is one of the first and most prosperous special economic zones that fueled the country’s massive export industry but has suffered since the financial crisis last year curtailed global demand.