The State-owned Assets Supervision and Administration Commission of the State Council announced Wednesday the Measures for the Administration of Total Wages of Central Enterprises, which comprehensively reformed the decision-making mechanism and management system of central enterprises' total wages. The new regulation will come into force since 2019.
The "Measures for the Administration of Total Wages of Central Enterprises" clarifies that the budget for total wages of central enterprises is mainly determined in terms of efficiency, efficiency adjustment, and level control.
The total salary budget is linked to the target value of the economic performance indicators such as the total profit so as to guide the enterprises to achieve a reasonable and orderly growth in the total wages of employees through the completion of high-quality development goals.
Wage growth should also be adjusted according to indicators such as labor productivity so as to highlight the management orientation that guides enterprises to improve efficiency.
At the same time, the SASAC will also follow the wage guidelines issued by the relevant departments and the wage control requirements for non-competitive state-owned enterprises.
Proper restraints will be imposed on some industries and enterprises with high wage levels, especially overgrowing wages with some industries that are not fully competitive so as to ensure that the wage levels and growth rate of employees are more fair, reasonable, and orderly.
The measures have clarified that supports will be given to special matters such as major special tasks and major scientific and technological innovation projects undertaken by central enterprises.
The measures have clearly categorized the management of the total wages of central enterprises. The scope of implementation of the total payroll budget filing system will be extended to all commercial central enterprises whose main business is in a fully competitive industry and field. The board of directors of the enterprise shall decide the annual total salary budget according to the rules and regulations, and the role of SASAC will be transferred from prior approval to prior guidance, in-process monitoring and post-supervision.
The total salary budget continues to be subject to approval for the main industries and key areas that are related to national security and the lifeline of the national economy, commercial central enterprises that mainly undertake major special tasks, and public welfare central enterprises that provide public goods or services.
The measures have also proposed exploring more flexible and efficient methods of managing total wages for central enterprises that carry out pilot projects such as state-owned capital investment, operating companies or mixed ownership reforms.
