5 to 6 percent salary rise proposed for 2019

The average salary rise in companies in Shanghai for this year is proposed to be 5 to 6 percent.

The annual proposal was released by Shanghai General Trade Union, Shanghai Employers’ Association and Shanghai Federation of Industry and Commerce on Wednesday.

The average salary rise proposed for 2018 was 8 percent.

According to the proposal, companies with normal business conditions and improved business performances are encouraged to follow the guidelines.

Those whose salary level was lower than the city average by at least 60 percent last year are encouraged to raise the salaries of their employees by over 8 percent, and those whose employees earned at least double the city average last year should keep the salary rise for this year under 8 percent.

Meanwhile, companies with dropping business results are allowed to keep the salary rise at 2 to 3 percent, and to those in difficulties with very bad business results the salary rise can be under 2 percent.

Shanghai General Trade Union said the annual guidelines for salaries have become an important reference for trade unions and companies in collective salary negotiations.