Recruiting in China

The Beijing municipal government has recently published the 2008 Enterprise Salary Guidance, which mandates that the average level of pay raises be kept at 11.5 percent.

The new guidance also sets the minimum pay raise level at an unprecedented 3.5 percent. Previously, it was maintained at a negative or zero percent.

An article in the China Youth Daily cites some experts who said the new guidance could help people combat continuous price increases if the new minimum pay raise level was fully implemented.

Although the Chinese government has made big efforts to bring down prices, the country's consumer price index kept rising over the first five months of this year.

Considering the continually rising prices of energy and food, the article says improving people's purchasing power could be the best way for them to maintain their livelihoods.

But the paper also says the new Guidance may not have much of an impact, because it is only a guiding policy, not an enforceable edict.

While the law guarantees only the standard minimum wage, enterprises ultimately decide whether or not to raise salaries for their employees.

The article suggests employees make concerted efforts to acquire equality in salary negotiations.