Trade union calls for 8% hike in wages

Companies where workers were paid two or more times higher than the average worker in Shanghai last year should keep the increments under 8 percent this year.

SHANGHAI Trade Union is calling for an average wage rise of 8 percent for workers this year.

As per a wage recommendation issued by the union yesterday, companies that suffered losses last year should hike wages by 3 percent.

In 2016 and 2017, the average suggested wage rise was 9 percent and the lowest was 4 percent.

The union’s guidelines are non-binding but they help workers while negotiating wages.

Companies where workers were paid two or more times higher than the average worker in Shanghai last year should keep the increments under 8 percent this year, while those paid less than 60 percent of the city’s average should be paid more than 8 percent.

The union said workers on production lines or service counters should be paid higher than the company average, while managers should receive lower than average wage increase.

In 2016, the average monthly salary of city workers was 6,504 yuan (US$1,030) before tax.

Meanwhile, Shanghai will raise the subsistence allowances to 1,070 yuan per month from April, up by 100 yuan — the highest in China.

The amount is considered the lowest a person needs to survive in the city.

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