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March 26, 2011

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Average salary up 9.3% on previous year

THE average salary of local employees reached 3,896 yuan (US$594) a month last year - a 9.3 percent increase from 2009, the Shanghai Human Resources and Social Security Bureau said yesterday.

In 2009, the average monthly salary was 3,566 yuan, up 8.3 percent from the 3,292 yuan figure in 2008.

During the past two decades, Shanghai's average salary has increased every year. The biggest hike was in 2007 when there was a jump of 17.4 percent to 2,892 yuan.

The average salary, which is released annually by local authorities, functions as the base to adjust the standard of social welfare and social insurance.

The increase means better welfare and an increase in social insurance payments from next month.

Meanwhile, the city will adjust basic living allowances from next month to reflect rising inflation.

Allowances for downtown residents will increase to 505 yuan per month, from 450 yuan now, while allowances for suburban residents will be 360 yuan, up from 300 yuan, said the Shanghai Civil Affairs Bureau.

The city started to pay basic living allowances in 1993 and the latest adjustment was made last year.

Earlier, bureau officials said a resident's expenditure - not just their income - is to be used to calculate whether they are entitled to government subsidies.

At present, a family's living allowances are decided by their income. Although some families have incomes above the city's poverty line, inflation makes it hard for them to make ends meet.


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