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Provisions of Shanghai Municipality on Minimum Wages of Enterprise Employees

Provisions of Shanghai Municipality on Minimum Wages of Enterprise Employees
 

(Promulgated on December 5, 1994 by Decree No. 90 of the Shanghai Municipal People's Government.  Amended and Re-promulgated on December 19, 1997 in Accordance with Decree No.54 of the Shanghai Municipal People's Government.  Amended and Re-promulgated on August 21, 2002 in Accordance with Decree No. 125 of the Shanghai Municipal People's Government)

Article 1 (Purpose and Basis)
With a view to protecting the legitimate rights and interests of the employees, safeguarding the basic necessities of life for the employees and their family members, and offering chances for fair competition among enterprises, these Provisions have been formulated in accordance with the "Labor Law of the People's Republic of China" and other relevant provisions and in the light of the actual circumstances of this Municipality.
Article 2 (Scope of Application)
These Provisions shall apply to enterprises and the employees who have formed labor relationship with them within the limits of this Municipality.
Article 3 (Definition)
The minimum wage mentioned in these Provisions refers to the minimum remuneration for labor obligatorily paid by an enterprise to its employees after they have provided normal labor within the legal working hours.
Article 4 (Form and Payment of Minimum Wages)
The minimum wage shall be divided into the monthly minimum wage and the hourly minimum wage.
The monthly minimum wage shall apply to the labor contract relationship of full-time employment, while the hourly minimum wage shall apply to the labor contract relationship of non-full-time employment.
The minimum wage shall be timely paid in the form of money.
Article 5 (Make-up of Minimum Wages)
The minimum wage shall be made up of various items of income which shall enter the total wage in accordance with the stipulations of the State statistics department, after deleting the follow items:
1. The wage payment for prolonging legal working hours;
2. The allowance given for the swing shift, the night shift, and for working under the special environmental conditions such as high temperature, low temperature, shaft, poisoning and harmful situations; and
3. Other income items which should be excluded from the minimum wage in accordance with the stipulations of the Municipal Labor and Social Security Bureau.
The labor insurance and welfare benefits for employees provided by laws, rules and regulations shall not enter the minimum wage.
Article 6 (Calculation of Minimum Wages)
In case that wages are paid by the piece or paid by deducting a percentage, the actual monthly labor pay of the employee shall not be lower than the monthly minimum wage.
In case that the normal labor provided by the employee who has formed a full-time employment labor contract relationship within the legal working time is less than a full month due to personal reason, the minimum monthly wage shall be converted according to the actual working hours he/she provided.
The enjoyment of legal holidays, leaves for marriage and funeral, and participation of social activities according to law by the employee who has formed a full-time employment labor contract relationship shall be regarded as the normal labor provided by the employee.
Article 7 (Principles for Determination and Adjustment of Minimum Wage Standards)
The determination and adjustment of minimum wage standards shall comprehensively make reference to the following factors:
1. The lowest living expenses of the employee him/herself and his/her average dependents;
2. The average wage level of the society;
3. The labor productivity;
4. The employment situation; and
5. The differences in the economic development between the urban areas and the rural areas of this Municipality.
The determination and adjustment of minimum wage standards shall also have a comprehensive consideration over such factors as job stability and welfare benefits of the non-full-time employment professions.
Article 8 (Examination and Approval Procedures for Determination and Adjustment of Minimum Wage Standards)
The determination and adjustment of minimum wage standards shall be proposed by the Municipal Labor and Social Security Bureau jointly with the Shanghai Federation of Trade Union and the representatives from the business circles, and be implemented only after approved by the Municipal People's Government, and be reported to the State Council for the record.
The minimum wage standards shall be published once every year.
Article 9 (Financial Arrangement and Payment)                                                                                                                                                                                                                                                          
The minimum wage paid by the enterprises shall be totally included in the cost.
Article 10 (Supervision by Trade Union)
Trade unions have the power to supervise the implementation of the minimum wage standards. In case that the wages paid by the enterprises are found to be below the minimum wage standards, the case may be referred to the labor and social security administrative department for handling.
Article 11 (Compensation Liability)
In case that an employer violates these Provisions by paying an employee lower than the minimum wage standards, the labor and social security administrative department shall order it to pay the arrears retroactively within a time limit in accordance with the minimum wage standards, and to pay a compensation according to relevant State provisions.
Article 12 (Settlement of Dispute)
An employee has the right to report to the labor and social security administrative department any act of the enterprise in violation of these Provisions. In case of a dispute over the payment of the minimum wage, an employee may, according to law, apply to the labor dispute arbitration committee for arbitration. If the employee not satisfied with the arbitration award, he may, according to law, take legal proceedings in a people's court.
Article 13 (Reconsideration and Lawsuit)
In case the enterprise does not accept the specific administrative acts imposed by the labor and social security administrative department, the enterprise may either apply for an administrative reconsideration, or bring an administrative action in accordance with the provision of the "Law of the People's Republic of China on Administrative Reconsideration" and the "Administrative Litigation Law of the People's Republic of China".
Article 14 (Exceptions to the Scope of Application)
These Provisions shall not apply to the enterprises that have been approved or ruled by the government or the relevant department, in accordance with the relevant provisions, to close down, to make readjustment, or to go through the procedure of bankruptcy because of difficulties in production or operation.
The employee's wage and benefits during the sick leave or leave for personal affairs shall be paid according to relevant provisions on leaves for sickness or personal affairs.
Article 15 (Cases Handled by Reference to these Provisions)
For other employees outside the definition of Article 2 of these Provisions, the minimum labor pay shall be handled by taking these Provisions as reference.
Article 16 (Department Responsible for Interpretation in Application)
The Municipal Labor and Social Security Bureau shall be responsible for the interpretation of these Provisions in their specific application.
Article 17 (Effective Date)
These Provisions shall become effective on January 1, 1995.


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