How To Raise Wages? Chinese People'S Income Doubled, Focusing On Three Major Paths

Recently, media reports reported that the national development and Reform Commission was drafting a "wage increase plan" which covered a large social scale. The news was falsified immediately, but it triggered a lot of complaints.

Improve the social security system and raise the minimum wage standard everywhere

To raise the overall income level of the Chinese people and raise the average income, the Chinese government starts with improving the social security system and raising the minimum wage standard.

Facts have proved that this is also the most effective policy to shorten the gap between income distribution and achieve equalization of social welfare.

The first quarter news conference of the Ministry of human resources and Social Security announced that in the first quarter of this year, a total of 13 provinces and municipalities in China had raised the minimum wage standard, an average increase of 20.6%.

At present, the highest monthly minimum wage in the country is 1320 yuan in Shenzhen, and the highest in the hourly minimum wage is 13 yuan in Beijing.

The relevant departments will continue to guide the areas where the minimum wage standards have not yet been adjusted according to the local economic development level, the consumer price index of urban residents and the average wage of the society.

The news released by the Ministry of human resources and social affairs also revealed that during the "12th Five-Year" period, China will gradually raise the minimum wage standard, with an average annual growth of more than 13%.

It can be said that the minimum wage with an average annual growth rate of more than 10% will become one of the most effective guarantee for China's income doubling plan.

The introduction of tax cuts has directly benefited thousands of households.

The minimum wage may benefit some of the low income groups in the society. In the face of the expansion of the number of middle and low income groups, the Chinese government has launched a measure to increase the income of the people at the core of tax reduction.

Concerned

We understand that Xie Xuren, the Minister of finance, said in the draft explanation that the revision of the personal income tax law should be carried out in order to raise the standard of reducing the cost of wages and the structural adjustment of the wage income tax rate. Besides simplifying and improving the tax system, the majority of the working class can enjoy the double tax benefits arising from the improvement of the cost reduction standard and the adjustment of the tax structure.

The relevant heads of the Ministry of Finance and the State Administration of Taxation disclosed that when answering questions about the draft questions, after the structural adjustment of the income tax rate of salaries and salaries, the proportion of taxable income applicable to taxpayers with a tax rate of less than 10% was 94% of that of the workers earning income. The proportion of 5% tax rates was 70%, which was 17 percentage points higher than that of the taxpayers at 10% below the current 9 level tax rate, which further reduced the tax burden of taxpayers with low and middle income.

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Strengthening wage consultation system to protect workers' income

If the tax reduction policy is a temporary move to benefit the majority of middle and low income groups, it is being studied and promoted.

Yin Chengji, spokesman of the Ministry of personnel and social affairs, said recently that with the establishment and gradual improvement of China's socialist market economic system, China has formed a wage based decision mechanism based on the market, which is a fundamental principle determining wage level and wage growth.

Under this premise, the wage level of the staff and workers is mainly determined by many factors, including the mechanism of determining wages through consultation between employees and enterprises.

Xia Xueluan, a professor of sociology at Peking University, recently told reporters that at present, wage collective bargaining in many areas can also boost the wage increase of workers. Through collective wage negotiation, it helps to improve the irregular distribution of income in some areas.

Professor Xia Xueluan also said that the collective bargaining system could allow workers to have more decision on the setting of wage standards.

According to the requirements of the National Federation of trade unions, Beijing will comprehensively implement collective wage consultation in 2012, with the focus on consultation to establish wage growth mechanism, state-owned enterprises must increase the proportion of wage distribution, and continue to promote the establishment of trade unions and wage collective bargaining among foreign-funded enterprises such as the world's top 500.

Background: how does the 12th Five-Year plan outline income growth?

The thirty-second chapter of the 12th Five-Year plan: speed up the growth of urban and rural residents' income.

We should improve the initial allocation and redistribution regulation system, rationally adjust the distribution relationship among the state, enterprises and individuals, and strive to achieve the simultaneous growth of residents' income and economic development, increase the growth of labor remuneration and labor productivity, significantly increase the income of low-income earners, continue to expand the middle income groups, and strive to reverse the widening trend of income gap between urban and rural areas, industries and social members.

On the "deepening of wage system reform", the thirty-second chapter is the first section: according to the principles of market mechanism adjustment, enterprise independent distribution, equal consultation and government supervision and guidance, a wage decision mechanism and a growth mechanism reflecting the supply-demand relationship of labor market and the economic benefits of enterprises are formed.

We should improve the minimum wage and wage guidance line system, gradually raise the minimum wage standard, set up an enterprise salary survey and information release system, and actively and steadily expand the coverage of collective wage consultation.

We should reform the management measures of total wages of state-owned enterprises, strengthen the dual regulation of wage and wage levels in some industries, and narrow the wage gap between industries.

Improve the civil service wage system.

We should improve the income distribution system of institutions, which is consistent with the characteristics of institutions, embodies post performance and classified management.