In early 2011, the average wage of a direct employee in Xiamen is approximately RMB 2,645 per month, a 51 percent increase over its 2009 average minimum wage of RMB 1,750 per month. Legislatures in the Chinese government issued an increase in the minimum wage to occur over the next few years through 2015. China officials believe that by increasing the minimum wage it will help lower their unusually high inflation rate and increase the standard of living throughout the nation. Xiamen’s legal minimum wage is that of the greater Fujian province, which ranged from RMB 600 to 900 per month in 2009. In 2011 the government increased the minimum wage to RMB 1,100 per month and for part time employees the rate is RMB 6.5 to 9.6 per hour. Calculating the exact cost of a direct employee on an hourly basis involves a complex formula composed of a daily base salary, employee benefits, and taxation.
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