The GuangZhou Municipal Human Resources and Social Security Bureau has announced salary benchmarks for enterprises in 2010. The benchmark salary growth rate for this year has been set at 11% in line with the city’s economic situation and price hikes in the first half of this year. It means that an enterprise in normal operations is expected to raise its salaries by 11% in the first half of the year.

According to the bureau, the salary benchmarks for this year have been determined by taking into account the city’s economic growth, consumer price rises, and employment target so far this year and salary levels and enterprise manpower costs last year. The benchmarks have been determined from computations using mathematical models. While the benchmark salary growth rate for this year has been set at 11%, the maximum and minimum growth rate has been set at 16% and 3%, respectively.

The rates have been published annually since 2002 as required by national authorities; they are for reference only and are not compulsory. For employees, the rates can be referenced during salary negotiations with the employer.