Regulations of Shenzhen Special Economic Zone on Living Wage  

(Adopted at the twenty-sixth meeting of the Standing Committee of the First Shenzhen Municipal People' s Congress on November 2nd, 1994)

Chapter ¢ñ  General Provisions

Article 1 In order to meet the need of Socialist market economy, guarantee the basic life of the personnel and his family members , protect the personnel' s rights and interests and to promote the fair competition between enterprises, these regulations are formulated pursuant to the labor law of the People' s Republic of China and with the actual circumstances of Shenzhen Special Zone(hereinafter referred to as "Special Zone" ).

Article 2 These regulations are applicable to the enterprises of all kinds in Special Zone; individual business involving hired workers(hereinafter referred to as "employing work unit" )and staff workers, regular workers, contract-system workers and labor workers(hereinafter referred to as "employee" ) that work in and take salary from the employing work units that mentioned above.

Article 3 "Living Wage" mentioned in these regulations means the minimum payment for labor that the employing work unit should pay for the employee when the employee has offerd normal labor in legal working time.

    Article 4 Shenzhen Municipal People' s Government shall organize the implementation of these regulations.

   Municipal and district labor administrative department shall supervise and inspect the implementation of these regulations.

Chapter ¢ò  Determination and Announcement of Living Wage

Article 5 Living wage is composed of basic wage, bonus and allowance and subsidy offered in name of wage.

     However, any of the following terms shall not be taken as the composition of living wage:

(1)         Wage for working extra shift;

(2)         Subsidies for working at night , in high or low temperature, under pit or in poisonous and harmful circumstances;

(3)         Insurance and welfare benefits prescribed by laws, regulations and national policies.

Article 6 The employee shall be considered to offer normal work when he is on paid vacations such as legal holidays, pubic holidays, vacations for going home, marrige, funeral and family planning, and when he takes part in social activities according to law.

Article 7 Living wage shall be determined according to the following factors:

(1)    Minimum living expenses of the employee and average member he should support;

(2)    The social average wage standard;

(3)    The standard of labor productivity and economy development;

(4)    Work status;

(5)    Social insurance standard.

Article 8 Living wage standard shall be determined as the average minimum living expenses of Shenzhen times number of the supported person and taking the other factors prescribed in Article 7 into account.

Living wage shall be adjusted once every year.

Article 9 Living wage shall be determined through the investigation of the Living Wage Adjustment Group which consists of Municipal Labor Administrative Department , Municipal Administrative Department of state-owned assets, Municipal Federation of Trade Unions, Municipal Federation of Chamber of Commerce ,and shall be submitted to the Municipal People' s Government for approval.

The establishment of Living Wage Adjustment Group shall be stipulated separately by Municipal People' s Government. The living wage adjustment group shall solicit opinions of Municipal Finance Department, Municipal of Civil Affairs, Price Control Bureau and Statistic Bureau.

Article 10  Living wage standard shall be promulgated on Municipal main newspapers, radio stations and television stations by Municipal People' s Government during the first ten-day period of May every year. And the press units mentioned above shall publish or broadcast the standard promptly.

Article 11 The executive year of living wage shall be form May 1^st of the current year to April 30^th of the next year.

Article 12 Living wage shall take per-hour wage as the basic form.

If other forms such as piece rate wage or deduction wage have been taken, living wage shall be converted on the basis of legal work time and the monetary equivalent shall not below hourly wage.

Chapter ¢ó  Safeguard and Supervision of Living Wage

Article 13 The employing work unit shall have its employee notified in written about the relevant provisions of living wage of the current year within one month from the date of being published by Municipal People' s Government.

Article 14 The payment that the employing work unit paid for its employee shall not below living wage, unless the employee fails to offer normal services in legal time due to his own fault.

Article 15 Living wage shall be fully paid in currency fixed-termly, and shall be accepted by the employee himself or the person delegated by the employee.

Article 16 Owned wages and salaries to the staff and workers shall be repayed at the first order if the employing work unit goes bankrupt or it is liquidated according to law.

Article 17 Labor unit has the right to supervise the execution of living wage. If the employing work unit violates these regulations, Labor unit has the right to ask relevant department to deal with the matter.

  If the employing work unit violates these regulations, citizens and organizations have the right to inform Labor Administrative Department of the offense.

Article 18 If the payment paid by the employing work unit is less than living wage or it is paid exceeding the time limit, the employee has right to appeal to the Labor Administrative Department.

Chapter ¢ô  Legal Responsibility

Article 19 If the employing work unit fails to inform the employees of living wage pursuant to these regulations, the Labor Administrative Department shall instruct the employing work unit to rectify the situation within a specified period.

Article 20 If the payment the employing work unit paid to the employee is less than living wage in violation of these regulations, the Labor Administrative Department shall order it to make up the deficiency within a specified period and to pay the mount of 1%of the deficiency to the employee as the extra compensation to the employee.

Article 21 If the employing work unit delays paying living wage in violation of these regulations, the Labor Administrative Department shall order it to pay within a specified period; if it delays more than 6days, 1% of total owned wages shall be additionally paid per day to the employee from the sixth day.

If there is illegal act mentioned in preceding paragraph , the Labor Administrative Department may impose a fine on the employing work unit of 50yuan once for each person according to the number of the staff that have been owned payment.

Article 22 The punishment made by the Labor Administrative Department shall be produced into written documents and shall be served to the parties.

Article 23 Where one party is not satisfied with the administrative punishment made by Labor Administrative Department, the party may apply for reconsideration to

Municipal Labor Administrative Department or organizations for administrative review of Municipal Government within 15days form the date receiving the notice of a penalty decision; he may also bring a lawsuit to the People' s Count.

If the party fails to apply for reconsideration or bring a lawsuit and refuses to implement the penalty decision, the Labor Administrative Department shall apply to the People' s Count for enforcement.

Article 24 Fine paid by the employing work unit shall not be itemized as cost.

Article 25 If there is disputes between the employee and the employing work unit have about living wage, they shall settle the disputes according to Regulations of People' s Republic of China on Settlement of Labor Dispute in Enterprises.

Chapter ¢õ  Supplementary Provisions

Article 26 The normal labor mentioned in these regulations means the labor provided by the employee within legal time according to the agreement in labor contract.

Article 27 These regulations shall take effect form the day of promulgation.

The provisions about living wage in Interim Provision of Shenzhen Economic Special Zone on Enterprises Wage Administration issued by Shenzhen People' s Government in 1992 shall be repealed concurrently.