Guangdong to raise minimum wage by 19%

GUANGZHOU -- South China's Guangdong Province is to raise the minimum wage by an average 19 percent from May to combat a labor shortage and rising living costs.

The pay raises will go into effect in all parts of Guangdong except Shenzhen on May 1, the provincial department of human resources and social security said in a press release on Thursday. Guangdong last raised the minimum salary in May 2013.

The minimum monthly pay for full-time workers in Guangzhou, the provincial capital, will be raised by 22.2 percent to 1,895 yuan ($300), the highest of four levels in the province.

Authorities in Shenzhen, which borders Hong Kong, separately announced a raise in the minimum monthly salary for full-time workers of 12.3 percent to 2,030 yuan ($320), the highest nationwide, from next month.

China is facing severe labor shortage due to tough birth control policies over the past three decades. Rising labor costs, coupled with falling orders, have left many manufacturers struggling and driven some to relocate to Southeast Asian countries.