Raising Enterprise Lowest Salary Standard
In a bid to help enterprises survive the global economic downturn, the Ministry of Human Resources and Social Security announced on November 17th that the raising of the minimal salary was suspended.

Our reporter Zhang Wan files the report.

Reporter: Enterprise's minimal salary is a policy the government introduced in order to ensure the benefits of low-income employees. The minimal salary in Beijing has been kept raising over the year, from 465 yuan per month in 2002 to 800 in 2008.

The public have largely showed understanding of the government's decision to suspend the rise temporarily.

"I think the purpose of the policy is to help the enterprises develop in a healthy way."

"The government is helping the enterprises to survive the financial downturn."

Liu Xin, director of Human Resources Research Institute at Ren Min University explains the policy.

"The minimal salary is a very sensitive labor market signal. The adjusting of this standard will be slowed down or suspended during the economic recession."

Up to the end of September, 19 regions including Beijing, Tianjin and Shanghai, had raised minimal salary, with the average increase being 15%.

Apart from stop the raising of minimal salary, the government will provide funds for labor intensive enterprises, reduce health insurance fees and add more items to health insurance. It also encourages stage-owned enterprises not to lay off employees.

Liu Xin says purpose of these new policies is to reduce enterprises' operating costs and stabilize the employment rate.

"The economy grow only when the enterprises can survive and develop. The reduction of health insurance fees may help reduce the burden of many enterprises facing a tough time. This is a normal reaction by the government."

Experts says that under the current economic circumstances, adjusting the relationship between employer and employee is necessary. This may avoid enterprises having to lay off employees on a large scale.

For China Drive, I am Zhang Wan.

Zhang Wan, CRI News.