Guangdong is to give workers in the province large, regular wage rises until 2012 in an attempt to combat high inflation and labour shortages.
The Department of Labour and Social Security told the provincial political consultative conference that a project would be rolled out this year to raise the salaries of all Guangdong employees by 14 per cent a year between this year and 2012, the Nanfang Daily reported yesterday.
By 2012, a worker's average wage would be four times what it was in 2000. Authorities will also establish a link between the minimum wage and inflation to try to raise the base wage in the next five years.
The move is likely to help households, especially low-income families, cope with rising inflation. The consumer price index rose 8 per cent in the first quarter. In February alone, it was at 8.7 per cent, the highest for a month in nearly 12 years.
Guangdong labour department spokesman Zhang Xiang said the wage-increase project would help stabilise society and give more residents a share of the province's economic achievements.
But he refused to give further details and rules for the project. 'It is still not the final version. More internal discussion is needed before we release the project officially,' he said.
Factory owners said they were worried about the plan.