In my home country, policies regarding minimum wage are very significant. Last month, some city or province in China decided to raise minimum wage by 10 percent. For instance, in my hometown (Hunan Province) has decided to raise the minimum wage from RMB 1265 to RMB 1390. China is one of the biggest and fastest growing economies in the world and change in the minimum wage is very important for the people so as to ensure a better life. However, if we compare with other countries, this minimum wage level is much lower than other developed countries. It is essential to find the reason behind the same also to find how the minimum wage is decided for the people. Minimum wage is the lowest wage that the employers should to pay either hourly, daily or monthly to their employees; but minimum wage level is set by government and they should take into consideration the economic environment to determine the level of minimum wage to be set (CBS Interactive). At different minimum wage levels, people receive either benefit or cautions. China first announced the policy of minimum wages in the year 1993. Based on different city or province, government set different minimum wage, but this is this policy includes various blind spots and it unjust. Until now, China is still trying to revise its minimum wage laws one by one.
difference between these two countries in terms of minimum wage?
Both countries in the year 2014 decided to change their minimum wage in order to adjust to the PPP changes. In United States, average hourly minimum wages is around $8.0, but in China, average hourly minimum wages is just $1.3 (CNN NEWS). We can see that when we compared the newest stats with this graph, both countries have shown an increase in minimum wage. However, from China’s end, they wanted to deal with the fully employed; but the United States wanted to adjust the industry restructuring and keep the unemployment rate healthy.