REPLY LETTER OF THE GENERAL OFFICE OF THE MINISTRY OF LABOR AND SOCIAL SECURITY ON ISSUE CONCERNING MINIMAL WAGE

The General Office of the Ministry of Labor and Social Security

Reply Letter of the General Office of the Ministry of Labor and Social Security on Issue Concerning Minimal Wage

LaoSheTingHan [2001] No.241

November 5, 2001

Ministry of labor and social security of Henan province:

Ask for Instructions on Minimal Wage (YuLaoSheHan [2001] No.56) from your bureau has been received. After disquisition, the following
is the reply:

When the Regulation on Minimal Wage promulgated by our department and other documents concerning minimal wage were drafting, the system
of social security is on its beginning stage. As a result the social insurance fees paid by individuals have not been taken into
consideration, when Ministry promulgated regulation on the standard of minimal wage was decided. Up to now, this problem is not clarified
in State laws, regulations and other regulative documents formulated by our department.

With a view to insuring the basic living conditions of the employee by the local government, and insuring the smooth operation of
collecting fees of social insurance, social insurance fees paid by individuals shall be taken into account when the standard of minimal
wage is decided and adjusted.