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SCMP Reporter

CHINESE workers will be guaranteed minimum and stable wages by a new wage law aimed at promoting social stability.

  According to the proposed 10-chapter legislation, the minimum wage level for different provinces will be set above the poverty line within respective areas.

  However, the levels for maximum and minimum wages have not been fixed, awaiting deliberation in provincial governments, labour unions and enterprises.

  Owners of enterprises will be required to follow regulations in setting pay scales and providing insurance for employees.

  Earlier reports said that some private enterprises and local governments had run out of funds to pay employees.

  Four principles will be recommended for setting wage levels.

  Employers will be required to increase wages according to economic development and pay workers according to performance.

    These two rules are aimed at abolishing equalitarianism in pay scales, which is still deeply rooted in the labour system.

  This long-held principle is believed to have caused discrimination against intellectuals and discouraged workers' enthusiasm.

  The principles of equality and efficiency will be taken into consideration when paying wages - equal work deserves equal rewards.

  The proposed law will also set rules in recording wage payments, resolving labour disputes and buying insurance for members of the workforce.

  Chinese labour experts describe this legal reform as thorough. However, they have cast doubt over whether it will be effectively executed.



Wage law aims above poverty line