The Ministry of Labor and Social Security is working to set up a mechanism to regulate the salary increase for enterprise employees, said an official from the ministry.

According to the ministry, minimum wage standards will have to be adjusted before the end of this year in the following areas: where minimum wage standards have only underwent one adjustment in the past two years, where the increase rate of minimum wages lags far behind that of local average salary increase, and where current minimum wage standards is well below the average local salary.

The ministry is also trying to trot out a way to cap the average salary among monopoly sectors.

For enterprises where managers get higher salary increases than average workers, the official said that the government is working on a mechanism to include salary increases for average workers (employees) as part of the managers' performances to decide their incomes.

For more details, please read the full story in Chinese (http://www.china-cbn.com/s/n/000002/20071112/020000060007.shtml).

(China.org.cn November 12, 2007)