*Wage increases are partly government-driven. China’s 12th Five Year Plan aims to raise the national minimum wage by an average of at least 13 per cent each year, faster than in previous years. Localities are free to set their wages above the national level. In fact, provinces have increased minimum wages by an average of 16 per cent this year, following a 20 per cent increase last year. Shenzhen province in the Pearl River Delta tops the list in terms of minimum wage levels, with minimum monthly pay of CNY1,600 (USD258). This has forced more than half the companies in our survey to raise wages more than they had planned, particularly for the least skilled part of their workforce.*
