The monthly minimum wage will increase by about 12% in Beijing, Shanghai and Tianjin. This increase in minimum wage is part of a government push to increase domestic consumer demand, the theory being that higher wages for local workers will increase consumption spending.
“wages will increase the most in Shanghai by 12.3 percent to 1,820 yuan ($290) a month from 1,620 yuan, and 21.4 percent on an hourly basis to 17 yuan from 14 yuan, according to the report on the website www.chinanews.com.”
According to a government run website china.org.cn, the wage hikes are an annual occurrence as a part of the five year plan from 2011 to 2015.
Further Reading: http://www.reuters.com/article/2014/04/01/us-china-salary-idUSBREA3004H20140401