The new Cost Of Living Index (COLI) will help improve the linkage mechanism between the adjustment of minimum wage and commodity prices. The index is currently being drafted by the National Bureau of Statistics (NBS) and its research teams from different provinces and autonomous regions, 21st Century Business Herald reported Wednesday.

The current system for adjusting wages and commodity prices responds too slowly to rising consumer prices.

According to a notice co-issued by five ministries, the COLI will guide officials to respond to rising prices accordingly. When COLI or consumer price index rises to a critical point, the linkage mechanism will be switched on to pay temporary subsidies.

After the new index is released, the subsidies will amount to last year's minimum wage standard multiplied by the index, the report said.

Statistics of different provinces have been submitted and await approval, the report said.