Open Governance
Sichuan Released 2021 Salary Guiding Line for Enterprises

  According to economic and social development and salaries of enterprise employees in Sichuan Province, and under the review of the Ministry of Human Resources and Social Security of the People's Republic of China and the approval of the People's Government of Sichuan Province, the salary guiding line for enterprises of 2021 has been adjusted to 7% as growth baseline of monetary wage distributed in enterprises with 10% as growth ceiling (warning line) and 3.5% as growth floor. The guiding line applies to salary distribution among on-the-job staff in enterprises.

  "All enterprises are obliged to improve their respective mechanisms of normal salary growth and carry out collective negotiation with relevant parties to specify a reasonable salary growth level and adjustment range for staff at different positions, which helps to boost enterprises' development and safeguard employees' remuneration and interests." As introduced by the head of the Sichuan Provincial Department of Human Resources and Social Security, the newly released guiding line is applicable to enterprises with normal production development and economic benefits growth, and enterprises of this kind are required to follow the guiding line to arrange salary growth to a normal extent for employees in a proper manner. As stipulated in the guiding line, the growth ceiling (warning line) applies to enterprises with faster growth in economic benefits and it is the upper limit of salary growth in enterprises under government recommendations; while the growth floor applies to those whose economic benefits are declining.

  The head also introduced that the mechanism of salary guiding line for enterprises is a kind of government's institutional macro-control on enterprises' salary distribution as well as the basis for internal collective negotiation on salaries in enterprises. It mainly works on guiding enterprises to rely on their respective production development and economic benefit improvement to properly define employees' salary level, which is beneficial for enterprises themselves to balancing salary distribution, promoting a harmonious and stable labor relation, reinforcing internal labor cost management, pushing forward the establishment of collective salary negotiation system and ensuring employees' legal rights.

  Under the overall requirements of national and provincial macro-control on enterprises' salary distribution, the salary guiding line for enterprises is determined after taking such factors into consideration as economic growth, labor productivity, price level, enterprises' affordability, previous salary guiding lines, and the situation in other provinces (cities and districts).

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