Low income residents face growing difficulties

CHINA / National

 Low income residents face growing difficulties
(China Daily)
Updated: 2006-05-16 06:53

A think-tank study has highlighted the growing problems faced by
low-income urban residents, particularly those in the country's biggest
cities.

In Beijing, the minimum wage in 2004 was 545 yuan (US$67.2) per month,
just 20 per cent of the city's average income. Added to this, the amount
earned was barely half the average monthly living expenditure of 1017
yuan (US$127).

In Shanghai the situation was not much better: The minimum wage was 635
yuan (US$78.2), just 25 per cent of the city's average income.

In 1994 the disparity was less marked, standing at 39 per cent and 36 per
cent in Beijing and Shanghai respectively.

Between 1994 and 2004, average incomes in the two municipalities grew at
an annual rate of about 15 per cent, while China's economy grew on
average 9.5 per cent.

Researchers, from the Income Research Institute of the Ministry of Labour
and Social Security, based the report on statistics from the 1994-2004
period.

"We are quite concerned that low-income groups have not benefited equally
from the country's economic achievements," Liu Junsheng, one of the
report researchers, told China Daily.

Liu said in several provinces, such as Jiangxi and Qinghai, the minimum
wage level has not risen at all in the 10-year period, after price rises
have been factored in.

"This has further enlarged the income gap, which may become a threat to
social harmony."

Liu said minimum wage levels nationwide were "too low" and "our strong
recommendation is to give them a quick hike."

China has no nationally prescribed minimum wage, and instead it is up to
provincial-level governments to set and adjust levels.

Widely accepted international standards say that the minimum wage should
be between 40-60 per cent the average income. The study shows that China
is falling well short of this standard.

"This level of income cannot sustain basic living needs," said Liu.

The researchers found that the monthly minimum wage in 2004 in 25
provinces, autonomous regions and municipalities was less than local
average monthly living expenditure .

The situation was most acute in Beijing with a gap of 472 yuan (US$58),
while in Shanghai it reached 418 yuan (US$51). In economic hubs such as
Zhejiang and Guangdong provinces the gap ranged from 200-300 yuan
(US$25-36).

"The gap means that the families of the minimum earners cannot meet their
basic living needs," said Liu.

Several days ago, the institute issued a warning that the country was
currently in a state where the government should be on high alert. It
said that by 2010 the disparity could become "unacceptable."

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