Individual Case (CAS) - Discussion: 1994, Publication: 81st ILC session (1994)

The Government supplied the following information:

The Ministry of Labour of the People's Republic of China issued the Provisions on Minimum Wages in Enterprises on 24 November 1993. The Provisions apply in enterprises of all categories, including state-owned, foreign invested and private enterprises, as well as to wage-earners employed in these enterprises (Article 2). According to the Provisions, the governments at provincial levels shall, under the guidance of the national competent authority, fix unified minimum wage rates or, where necessary, different minimum wage rates for different areas or industries, which are applicable to their provinces respectively (Articles 6, 9). The Provisions provide that the governments shall consult with employers' and workers' organizations concerned in fixing minimum wages (Article 6).

With regard to the implementation of minimum wage rates, the Provisions request that enterprises should notify their employees about the applicable rates fixed by the governments as well as about all matters concerned (Article 18); wages paid by enterprises to workers should not be less than those prescribed by the minimum wage rates applicable to the enterprises (Article 19); the labour administration of governments at all levels shall be responsible for the inspection of the application of minimum wage rates (Article 22); and trade unions at various levels shall have the right to supervise the implementation of minimum wage rates and ask competent authorities to solve the problems concerned (Article 22).

In regard to sanctions for the failure to comply with minimum wage rates, the Provisions provide for economic penalties to enterprises and employers and for the payment of compensation to workers by different ratios (Articles 26, 27).

Measures are being taken to prepare the implementation of the Provisions at present. The competent labour authorities at provincial levels are fixing their own minimum wage rates and are preparing methods of implementation according to the Provisions. Some provinces and cities including Shanghai, Guangdong (Guangzhou, Shenzhen and Zhuhai), Sichuan (Deyang) had issued their minimum wage rates and put them into force by the end of 1993. The work is accelerating in other provinces and cities as well.

In addition, a Government representative stated that the Government had made a serious study of the comments of the Committee of Experts. She emphasized their positive attitude of cooperation which was shown in the written reply to the ILO, for which the opinions of China's employers' and workers' organizations had been solicited. She recalled that during the time of the planned economy, reasonable minimum wages had been guaranteed administratively by the Government, based on unified regulations, which established a wage-fixing system by grade, according to circumstances. She noted that such a system was no longer used because of the transition to a market economy. The Government representative emphasized that, with the growth of China's economy and the progress of reform, the country was placing more emphasis on the role of labour legislation in protecting the basic rights of the workers. She mentioned the regulations concerning the fixing of minimum wages in enterprises of 24 November 1993, formulated after extensive consultations with the workers' and employers' organizations, which had entered into force upon the date of issue and which were applicable nationwide. The purpose of these provisions was to meet the demand of the growing socialist market economy, to ensure that workers and their families enjoyed basic living conditions, and to promote equality between workers and fair competition among enterprises. The Government had already submitted the text of these provisions to the Committee of Experts. In addition to the provisions concerning the fixing of minimum wage rates, and inspection and economic penalties for non-payment of the minimum wage, she stated that the regulations required the minimum wage rate to correspond to between 40 to 60 per cent of the average rate of wages in the region concerned. She added that, in the case of non-compliance, the regulations empowered the labour authorities to order the unpaid wage to be made up and to impose on employers and responsible persons the obligation to pay compensation to the workers, which ranged from 20 to 100 per cent of their wages depending on the period of non-payment. The Government representative stressed that provincial governments were formulating their own minimum wage rates, and that some of them had already issued and implemented those rates before the end of 1993: these provinces and cities included Guangdong (including the cities of Shenzhen, Zhuhai and Guang Zhou), Sichuan, Shanxi, Fujian, Gansu and Shanghai; other provinces and cities were engaged in the same process. The Government was confident that, with the strengthening and improving of China's labour laws, the rights of Chinese workers to minimum wages would be better protected.

The Employers' members pointed out that this was the first time ever that a case concerning China had been discussed in the Committee and thanked the Government representative for the detailed information. They expressed interest in receiving more information, in the form of a written report, about the principles of a minimum wage, the mechanism for its implementation in practice, and as to how the minimum wage fixing mechanism works in practice. They wondered whether the provisions had already entered into force, or whether they were only being implemented by stages. In the latter case, it was important to know when the regulations would come into force fully. It was hoped that the Government would submit a more detailed report for examination by the Committee of Experts so that the Conference Committee might, if appropriate, take up this matter again in the future.

The Workers' members drew the Committee's attention to the fact that this Convention had been ratified by China already in 1930 but the first provisions concerning minimum wages in enterprises had been adopted only on 24 November 1993. However, it was at least possible to see a change in the attitude of the Government to the extent that a report had been supplied for examination by the Committee of Experts and information had been made available concerning the application of the Convention. In addition, they noted that the Government had undertaken the commitment, during the general discussion, to attach more importance to international labour standards. The Workers' members also noted the information concerning the economic reforms taking place and observed that the legislative framework, at least in the field of labour, had not been adapted to the challenges of a market economy and several questions remained. The Government should consult the 1992 General Survey on minimum wages with a view to better applying the Convention. The five principal points they raised were: (1) the period of time needed for the execution of the measures provided for in the regulations of 24 November 1993 and the possibility for the workers to invoke those provisions; (2) their practical application in small- and medium-sized enterprises, in the export processing zones and to young workers and women; (3) the existence of a supplementary system where provinces did not fix minimum wages; (4) the intervention of inspectors in workplaces in export processing zones and in rural villages; and (5) the effective consultation with organizations truly representative of workers and employers, as well as the possibility for them to negotiate minimum wages at the enterprise level. Finally, they referred to Case No. 1652 examined by the Committee on Freedom of Association and requested the Government to furnish detailed information on all these outstanding points.

The Workers' member of the United States stressed that the Committee should not be satisfied with simple indications by the Government of the manner in which it intended to apply the Convention. In addition, he referred to the state of minimum wages in China, where, for instance in the export processing zones, excessively low rates of the minimum wage in various cities, and the non-payment of even such minimum wages have been observed. He underlined the importance of real effective trade unions to the application of this Convention. He stated that consideration of this issue must take place against the backdrop of what he considered to be repression by the Chinese Government of free trade unions, suppression of collective bargaining and the use of prison and forced labour. He reiterated that it was not sufficient for the Government to make new laws and proposals and urged the Government to take measures to ensure effective enforcement of the new provisions and to change the general practice in the field of minimum wages.

The Workers' member of China stated that the Chinese trade unions were pleased with the examination by the Committee of the application of this Convention in China. He also pointed out that his organization had made studies on minimum wages in China and their results had been published in the union press. In addition, he referred to the new regulations on minimum wages, and emphasized particular aspects such as those concerning consultation with the employers' and workers' organizations; the role that such organizations could play as regards the supervision of minimum wage rates; and the role of the competent authorities in applying sanctions for the non-observance of such rates, and in resolving conflicts on the subject. He stated that the Chinese trade unions were satisfied with the provisions of the regulation. As to the better application of the Convention, the unions had urged the authorities, and especially the provincial governments, to work out minimum wage rates according to their situations in their own localities. He was pleased to confirm that the Chinese trade unions had always participated actively in the promotion and formulation of the new regulation.

The Government representative wished to make it clear that the provisions in question were too recent to accumulate supplementary data on the subject, but that her Government would later provide all the requested information to the Committee of Experts in writing. She stated that her Government would continue to take the necessary measures to ensure equality for workers and the basic improvement of their conditions of life, to assist enterprises to improve their management methods and so ensure their financial well-being, and to ensure the payment of wages from a special fund created for this purpose. She referred to the legislation concerning enterprises in financial debit, which provided for unemployment benefits to be paid to the workers of those companies. New labour legislation had been submitted to the National People's Assembly for discussion and the Government hoped to promulgate the legislation this year. She emphasized the importance attached by her country to the application of ILO standards and stated that the texts of international labour Conventions had been translated into Chinese, which should contribute to their better application.

Replies received to the issues raised in a direct request which do not give rise to further comments (CEACR) - adopted 2018, published 108th ILC session (2019)

Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes the information provided in the Government’s report, in particular the adoption of the revised Regulations concerning minimum wages, which came into force on 1 March 2004.

Article 3 of the Convention. The Committee notes that under section 5 of the revised Regulations concerning minimum wages, the minimum wage rates may be either monthly, which are applicable to full-time workers, or hourly, which are applicable to part-time workers. The Committee also notes that, under section 6 of the Regulations, in fixing or adjusting minimum wage rates due consideration should be given, among other factors, to the cost of living, the consumer price index of urban residents, the level of social security contributions, the average wage, the level of economic development and the status of employment. As regards the requirement for full consultations with employers’ and workers’ organizations prior to determining minimum wages, the Committee notes the Government’s reference to the Guiding Principles for the Establishment and Perfection of the Mechanism of Tripartite Consultation on Labour Relations, which were issued by the Ministry of Labour and Social Security on 13 August 2002. Since neither the revised Regulations of 2004 nor the Guiding Principles of 2002 are available in the Office, the Committee would appreciate receiving a copy of these two texts. In addition, while noting the Government’s indication that the equal participation of employers’ and workers’ representatives is a general practice, the Committee requests the Government to take appropriate steps to ensure that the national legislation is aligned with established practice.

Article 4. The Committee notes that under section 26 of the Regulations on labour and social security inspection, which came into effect on 1 December 2004, in case of sub-minimum payment of wages, the Labour and Social Security Bureau may order the enterprise concerned to pay the workers an extra compensation at the rate of between 50 and 100 per cent of the amount due. It also notes that section 13 of the revised Regulations provides that if the employer fails to pay the workers at the legal minimum wage rate, the Labour and Social Security Bureau may impose a monetary fine of up to five times the wages due. The Committee requests the Government to transmit a copy of the Regulations on labour and social security inspection of 2004.

As regards the means to inform the employers and the workers concerned of the minimum wage rates in force, the Committee notes the Government’s explanations on its various efforts to diffuse the revised Regulations of 2004 and to publicize the minimum rates as widely as possible.

Article 5 and Part V of the report form. The Committee notes the information provided by the Government that, as of the end of 2005, the number of workers covered by the minimum wage system in all occupations was 70.6 million, and that all 31 provinces, autonomous regions and municipalities, including Tibet, issue local monthly minimum wage rates, while 23 of them issue hourly rates. It also notes that the highest monthly minimum wage is in the Municipality of Shenzhen (810 yuan, or approximately US$102) while the lowest is in Jiangxi Province (270 yuan, or approximately US$34). As regards inspection results, the Committee notes the figures given in the Yearbook of Statistics in China, 2004, according to which the Labour and Social Security Bureau settled 263,567 cases, 7,463 of which concerned the payment of minimum wages. It also notes that, in 2005, the labour inspection services, totalling some 20,000 full-time and 26,000 part-time inspectors, visited 1,185,000 enterprises and handled approximately 13,000 cases regarding violations of the minimum wage regulations, which permitted the recovery of 5.81 billion yuan (approximately US$733 million) of unpaid wages. The Committee would be grateful if the Government would continue to provide up to date information on the practical application of the Convention.

Finally, the Committee notes the comments made by the All-China Federation of Trade Unions (ACFTU). It notes, in particular, its promotional activities for the implementation of the revised Regulations concerning minimum wages, its active involvement in the enforcement of the minimum wage legislation and its research work serving for the adjustment of local minimum wages. The Committee would appreciate receiving a copy of the ACFTU’s “Manual on Safeguarding of Labour Remuneration Rights”.

Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes the observations made by the International Confederation of Free Trade Unions (ICFTU) concerning the application of the Convention. The ICFTU alleges that essentially due to poor enforcement and monitoring, the majority of workers, in particular migrant workers, fail to get the legal minimum wage. According to the ICFTU, factory managers often falsify time cards and payroll records to avoid paying the legal minimums while cases of non-payment and unlawful wage deductions are also too common, and tend to reduce to sub-minimum levels the income even of those who are nominally paid above the minimum wage rate. The ICFTU also indicates that the extremely high proportion of workers without formal contracts means that tens of millions of workers do not benefit from minimum wage regulations. It further observes that in the majority of cases workers are unaware of the minimum wage rates applicable to them, or confused by various piece rates or complicated calculations of hourly rates. As regards the role of workers’ organizations, the ICFTU considers that the All-China Federation of Trade Unions (ACFTU) is not a genuine trade union and cannot negotiate properly and independently with private business and the Government. While recognizing recent improvements in the legal framework concerning the calculation and enforcement of minimum wages, the ICFTU deplores the insufficient monitoring of enterprises to ensure compliance, the limited means of legal redress available to workers and the state secrecy which prevents access to clear, accurate and transparent statistics. The Committee invites the Government to transmit its comments on the points raised in the communication of the ICFTU so that these may be examined in detail at its next session.

The Committee is also addressing a request on certain other points directly to the Government.

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the information provided by the Government in its report on the changes and operation of the minimum wage fixing machinery introduced in 1993. It notes in particular that, of the minimum wages established in 30 provinces, autonomous regions and municipalities, with the exception of Tibet, 14 were adjusted in 2001 and that the number of workers protected by minimum wage provisions at the end of that year was 70.5 million. The Committee also requests the Government to provide additional information on the following points.

Article 3, paragraph 2(2), of the Convention. The Committee notes from the Government’s report the establishment in August 2001 of a national system of tripartite meetings to harmonize labour relations and covering the issue of minimum wages. While noting that the above system has already been established in over ten major municipalities and provinces, the Committee requests the Government to provide a copy of the text establishing the legal basis of the system and to indicate the manner in which this system relates to the consultations envisaged in section 6 of the Regulations concerning minimum wages in enterprises of 24 November 1993 for the purpose of fixing the rate of such minimum wages. Furthermore, as the Labour Law of 5 July 1994 and the above Regulations of 1993 do not explicitly provide for the participation of the employers and workers concerned in the operation of minimum wage fixing machinery in equal numbers and on equal terms, the Committee would be grateful if the Government would provide information on the manner in which such participation is ensured and guaranteed in practice.

Article 4, paragraph 1. The Committee notes that under section 14 of the 1993 Regulations concerning minimum wages in enterprises, the rates of the minimum wages applicable in a province, autonomous region or municipality shall be published in the local official bulletin, as well as in at least one of the newspapers in circulation throughout the region. In this respect, the Committee draws the Government’s attention to paragraphs 358 to 361 of its General Survey of 1992 on minimum wages in which it stated that for practical reasons the publication of minimum wage rates in the official gazette is not itself sufficient to ensure that the employers and workers concerned are made aware of the rates in force and that they should be made known more generally, for example by posting notices in the places where wages are paid or in workplaces or by distributing the applicable regulations concerning conditions of employment, including minimum wages. The Committee would therefore be grateful to be provided with fuller information on the measures taken in practice to ensure that the employers and workers concerned are kept informed in a continuous and easily understandable manner of the minimum wage rates in force.

Article 5 and Part V of the report form. With regard to the implementation of the minimum wage regulations, the Committee notes that some 955,000 employers were inspected in 2001 and that 920 million yuan in wage arrears and unpaid wages were recovered for workers. It also notes the existence in 2001 throughout the country of 3,174 labour protection supervisory bodies with an overall staff of 40,000. The Committee requests the Government to continue providing full information, including statistics, in future reports on the manner in which the Convention is applied in both national law and practice. Furthermore, the Committee would be grateful if the Government would keep it informed of any measure adopted or envisaged and any progress achieved in the establishment of minimum wage fixing machinery in territorial entities such as Tibet, which have no such machinery and in which there appears to be no other effective arrangement for the fixing of wages and in which wages are exceptionally low.

Direct Request (CEACR) - adopted 1998, published 87th ILC session (1999)

The Committee notes the information supplied in the Government's report. It notes in particular that, according to this report, as of 1996, a minimum wage fixing system has been established and maintained in 31 provinces, autonomous regions and municipalities directly under the central Government, except for the Tibetan Autonomous Region. Sixteen provinces and municipalities adjusted and increased their minimum wage rates. Minimum wage study, fixing, review and implementation are carried out on the basis of tripartite consultations. No case of violation by enterprises of minimum wage rates has been found in the labour dispute petitions handled by arbitration organs.

The Committee requests the Government to continue to provide, in accordance with Article 5, in conjunction with point V of the report form, general information on the application of the Convention in practice in the country, including its application in the Tibetan Autonomous Region relating to: (i) the minimum wage rates in force; (ii) the available data on the number and different categories of workers covered by minimum wage provisions; and (iii) the results of inspections carried out (e.g. the number of violations of minimum wage provisions, the penalties imposed, etc.).

Direct Request (CEACR) - adopted 1995, published 83rd ILC session (1996)

The Committee notes the Government's reply to its previous comments.

Articles 1 and 3 of the Convention. The Committee notes with interest the information supplied by the Government regarding the minimum wage standards which have been established in 18 provinces, cities and autonomous regions. It also notes that minimum wage standards should be completed before the end of June 1995 in the 12 other remaining provinces and cities of the country. Moreover, the Committee notes that, as regards the preparation of minimum wage standards, the Ministry of Labour has required the local administrations to conduct actively consultations with the branches and social organizations concerned. The Government further states that in the process of formulating and promulgating the standards of minimum wages, all competent authorities of the provinces, cities and autonomous regions strictly observed the relevant provisions of the Regulations concerning Minimum Wages in Enterprises, including those concerning full consultations.

The Committee requests the Government to keep the Office informed on any progress made in completing minimum wage standards in the country and on consultations which have been made in this respect.

Article 4. The Committee notes that, according to the Government, the new system of minimum wages is just at the outset in the country, and the Ministry of Labour so far has neither found any local government concerned that do not conduct consultations while working out the standards of minimum wages, nor received any workers' complaints of non-observance of the standards of minimum wages against enterprises. However, the Committee again requests the Government to indicate the amounts of the fines provided for under sections 91(3) and 95 of the 1994 Labour Law. It also requests the Government to supply information on the results of inspection and to keep the Office informed of any sanction imposed on employers and compensation paid to workers under section 27 of the Regulations.

Article 5. The Committee notes that the system of minimum wages should apply to all workers who have formed labour relationship with state-owned enterprises, collective enterprises, foreign capital and joint ventures, private enterprises, individual economic organizations, as well as government bodies, institutions and social groups within the territory of China. It also notes that the total number of workers across the country who are now protected by the system of minimum wages is 67.85 millions. The Committee requests the Government to keep the Office informed on any development in this respect.

Observation (CEACR) - adopted 1995, published 82nd ILC session (1995)

With reference to its previous comments, the Committee notes the information supplied by the Government, and particularly the adoption of the Regulations of 24 November 1993 respecting minimum wages in enterprises, and the discussion at the Conference Committee in 1994 concerning the application of the Convention. The Committee also notes the adoption of the Labour Law on 5 July 1994 and its coming into force on 1 January 1995.

Articles 1 and 3 of the Convention. The Committee notes that the Labour Law provides in section 48 for a minimum wage guarantee system. In accordance with this section, the minimum rates for wages shall be determined by provincial, autonomous, regional and municipal governments under direct central authority. Section 49 of the Law provides for the fixing and adjustment of the minimum rates of wages taking into account the following factors: (i) the average minimum expenditure needed for the subsistence of workers and their dependants; (ii) the average wage level in society; (iii) labour productivity; (iv) the employment situation; and (v) regional differences in the level of economic development. Furthermore, section 6 of the Regulations of 24 November 1993 provides for such levels to be fixed in consultation with the trade union and the association of enterprise managers at the corresponding level. The Committee notes with interest the legal framework established for the fixing of minimum wages under these provisions. It requests the Government to supply information on the minimum wage rates fixed in practice by the various local authorities and on the consultations held. Furthermore, the Committee requests the Government to provide information on the measures adopted by the Labour Administration Department of the State Council under section 25 of the Regulations to ensure that the provisions of the Regulations are given effect by the local authority, including its provisions respecting consultation.

Article 4. The Committee notes with interest that sections 91(3) and 95 of the Law stipulate that the payment of wages which are lower than the local minimum wage is an infringement of the legitimate rights and interests of the workers, punishable by the applicable fines. It requests the Government to indicate the amounts of these fines and the legal provisions prescribing them.

The Committee also notes that the Regulations provide for machinery to guarantee and supervise minimum wages, under which the Labour Administration Department of the people's governments at the various levels are responsible for the inspection and supervision of the application of minimum wages (section 22 of the Regulations) and, in the event of the payment of a wage that is lower than the minimum rate, are responsible for ensuring the payment by the enterprise of the remaining wages owed and the prescribed compensation (section 27).

The Committee requests the Government to provide full information on the manner in which minimum wage rates are applied, including the consultations held, the results of the inspection of their application, the sanctions imposed and cases in which compensation has been paid to workers under section 27 of the Regulations.

Article 5. The Committee requests the Government to provide the available statistics on the number and different categories of workers covered by the Regulations respecting minimum wages.

Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

With reference to the previous comments, the Committee notes the indications in the Government's report to the effect that the Government is drawing up a regulation on minimum rates of wages in enterprises, and that this regulation will include not only the principles and methods for determination of minimum wage rates but also the procedures of protection and inspection for the application of the minimum rates fixed. It notes in particular the Government's reference to economic penalties to be provided in the regulation for failure to comply with the minimum wages (Article 4, paragraph 1, of the Convention).

The Committee hopes that the Government will supply information on the progress made in the preparation of this regulation as well as its text. It also requests the Government to provide information on the practical application of the Convention under the existing national legislation, in accordance with Article 5 and point V of the report form.

Direct Request (CEACR) - adopted 1993, published 80th ILC session (1993)

The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the following matters raised in its previous direct request:

Article 4 of the Convention. The Committee hopes that the Government will indicate the sanctions applicable to ensure the observance of the minimum wage rates that are in force (paragraph 1 of this Article).

Article 5. The Committee noted the scales of wages contained in the last report. It requests the Government to supply further information on the practical application of the Convention in accordance with this Article and Part V of the report form.

Direct Request (CEACR) - adopted 1989, published 76th ILC session (1989)

Article 4 of the Convention. The Committee notes the information supplied by the Government. It hopes that the Government will indicate in its next report the sanctions applicable to ensure the observance of the minimum wage rates that are in force (paragraph 1 of this Article).

Article 5. The Committee notes the scales of wages contained in the report. It requests the Government to supply further information on the practical application of the Convention in accordance with this Article and Part V of the report form.