Shenzhen raises minimum wage by 13%

Southeastern Chinese manufacuring hub of Shenzhen is to raise its minimum pay by 13 percent next month in a bid to attract workers and help them offset the rises in living costs. As of Feb. 1, the minimum monthly wage for full-time workers in Shenzhen, which borders Hong Kong, will be raised to 1,808 yuan (299 U.S. dollars) from current level of 1,600 yuan, according to a statement from the city's government. The new level is the highest nationwide. Meanwhile, the minimum hourly pay for part-time workers is to be raised by 13.8 percent to 16.5 yuan. The rise in mininum wages in Shenzhen mirrors similar moves in other parts of the country where fewer new workers are entering the labor force. The rapid rise in living costs is also a factor behind the wage hike. The wage hikes highlight the challenge for the world's second-largest economy with its low-cost exporters feeling the pinch from rises in labor costs among other factors.