Minimum Wage Increase Takes Effect Next Month

Deep News
Sep 14

In Jincheng City's urban districts, as well as Gaoping City, Yangcheng County, Zezhou County, and Qinshui County, the monthly minimum wage standard will be adjusted to 2,350 yuan for the first tier. Meanwhile, Lingchuan County will see its monthly minimum wage standard adjusted to 2,150 yuan for the third tier.

The regulations on minimum wage clearly state that determining and adjusting the monthly minimum wage standard should take into account factors such as the basic living expenses of local workers and their dependents, the consumer price index for urban residents, social insurance premiums and housing provident funds paid by employees, average worker wages, economic development levels, and employment conditions. Typically, regions adjust their minimum wage standards every two to three years.

Once the minimum wage standard is raised, not only does it directly impact the income of low-income workers, but it also affects the labor rights and interests of other employees.

Lu Jingbo, deputy director of the Labor and Social Security Law Committee under the All-China Lawyers Association, explained that the calculation standards or minimum safeguard lines for overtime pay, unemployment insurance benefits, probationary period wages, economic compensation, dispatched worker standby wages, and sick leave wages are all linked to the local minimum wage to varying degrees.

Using overtime pay as an example, Lu noted that overtime pay is calculated based on the employee's regular working hour wages, and the minimum wage regulations explicitly state that overtime pay is not included in the minimum wage. When an employee's base salary equals the minimum wage, overtime pay will increase in tandem with the minimum wage adjustment.

Additionally, according to the Labor Contract Law, probationary period wages must not fall below the local minimum wage standard, and sick leave wages or disease relief payments during the medical treatment period must not be lower than 80 percent of the minimum wage standard. For salespeople, real estate agents operating on a low-base-plus-high-commission model, as well as those in new forms of employment, the minimum wage increase also provides more reliable income protection.

Recently, on social media, a Yunnan-based food company posted a recruitment notice showing hourly wages of 13 to 15 yuan for temporary store staff. However, the latest hourly minimum wage standards for the three tiers implemented in Yunnan Province are 22 yuan, 21 yuan, and 20 yuan respectively, meaning the company has violated the minimum wage system regulations.

Despite the favorable policies, some enterprises still attempt to circumvent minimum wage protections through various means, infringing on workers' rights. Lu Jingbo cited several common tactics, including incorporating overtime pay and position wages into the minimum wage under a package salary system, offsetting the minimum wage with free meals, accommodation, meal allowances, housing subsidies, or transport subsidies, and counting allowances for high temperatures, night shifts, underground work, or toxic and hazardous substances into the minimum wage.

He added that using a trial work period as a free labor phase is a common gray-area tactic in low-wage positions such as cleaning, customer service, and sales. Some employers state in their offer letters that the first seven days of trial work are unpaid or pay only 80 yuan per day during the trial period, Lu explained, which is a way for employers to replace the statutory probationary period and avoid legal wage obligations.

Lu advised that workers encountering such situations should first preserve evidence, including labor contracts, pay policies, and bank transaction records showing wage payments. They can then report violations to the labor inspection authorities, who can verify the case and order the employer to make up the shortfall within a specified timeframe. Additionally, workers can apply for labor arbitration in accordance with the law to claim the difference in minimum wage.

The minimum wage standard serves as the bottom line for labor rights. Relevant departments need to strengthen labor supervision, maintain smooth channels for rights protection, and strictly investigate various forms of disguised infringement. Workers should also proactively familiarize themselves with policy standards, understand their own rights, be alert to employers' non-compliant tactics, and promptly seek rights protection when encountering wage deductions or standards that fall below legal requirements.

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