ALL the attendees at a government-sponsored public hearing on wages yesterday favored a rise in the minimum wage, although they differed on the amount of the pay rise.

Ten representatives of workers and 10 representatives of employers participated in the hearing. Most of them felt the minimum monthly salary within the special economic zone (SEZ) should be raised to around 750 yuan (US$94) from the current 690 yuan, while some suggested the minimum monthly pay should be raised to above 800 yuan.

"The (690 yuan) minimum salary has to be raised. It's not attractive to workers," said Lu Jianhong, human resources manager of the Shenzhen Baofu Jewelry Co. Lu said her company could not hire enough workers even though it offered each new worker a monthly salary of 690 yuan plus free food and accommodation. "The workers told me other places are willing to pay 800 yuan a month," she said.

Wu Canru, vice general manager of the Shenzhen Chuang Hua Cooperate Co. Ltd., also said the minimum salary should be raised, but he suggested it be kept under 750 yuan within the SEZ. "If the pay rises too much, companies will either go bankrupt or leave the city," he said. Fu Tong, human resources manager of the Shenzhen-based fast food chain Miandianwang, also suggested 750 yuan a month for workers within the SEZ.

Yang Yong, a security guard with the Shenzhen Fuhao Fashionable Dress Co. Ltd., said the minimum monthly pay should rise to at least 800 yuan for workers within the SEZ.

"Life in Shenzhen is expensive. It's hard to live with only 690 yuan a month. You need to pay at least 300 to 400 yuan on food and rent. And then you have to pay other costs like the workers' union fee and insurance. You will have little money left. Many workers cannot afford a train ticket home for the Spring Festival," said Yang, who earns a little more than 1,000 yuan each month.

Employers are not willing to raise the minimum wages by a great deal, however, as increasing minimum wages entails employers to pay for overtime. They will also have to pay more insurance for workers, as the insurance premiums are fixed by the workers' wages.

The law requires employers to pay 1.5 times the regular salary for overtime on workdays and twice the regular pay for overtime on weekends.

Wu Liyong, an official with the labor bureau, acknowledged that a rise in the minimum salary would influence those labor-intensive companies.

On July 1 last year, Shenzhen raised the minimum salary in the SEZ by 80 yuan to 690 yuan per month, and the minimum monthly salary outside the SEZ by 100 yuan to 580 yuan a month.

Shenzhen's pay regulations require the minimum wage be adjusted once a year. This year's pay rise is expected to be announced in June.

Editor: Wing