Kunming and Yunnan have always been relatively cheap when compared to more developed parts of China, but as this corner of the country becomes more developed it is inevitably becoming more expensive. Not surprisingly, inflation has become an increasingly important issue in Yunnan - and nationwide.
In response to the rising cost of living, the Yunnan government announced this week that it will raise minimum wages by up to 22 percent starting on July 1.
The government's move is aimed at helping alleviate pressure on workers from rising prices and boosting consumer spending in order to stimulate the provincial economy – but this could also fuel more inflation down the road.
Minimum wages in Yunnan are divided into hourly and monthly categories, which are each divided into three classes for different geographic areas, with most of urban Kunming falling into the class one designation.
In Kunming the minimum monthly wage will rise from 680 yuan to 830 yuan, an increase of 22 percent, while the minimum hourly wage will go from 7 to 8 yuan.
Class two areas consist of all county seats, Anning city and Kunming's Dongchuan district. In these areas the monthly and hourly wages will rise from 610 yuan to 740 yuan and 6 yuan to 7 yuan, respectively.
The remaining parts of Yunnan are considered class three areas and will see minimum monthly and hourly wages rise from 520 to 630 yuan and 5 to 6 yuan, respectively.© Copyright 2005-2020 GoKunming.com all rights reserved. This material may not be republished, rewritten or redistributed without permission.