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12 provinces and cities, including Shaanxi, Shenzhen, Shandong, Shanxi, Gansu, Qinghai, Yunnan, Sichuan, Beijing, Shanghai, Tianjin and Chongqing have adjusted their monthly minimum wage, with an average increase of about 14 percent.

The average growth rate of the minimum wage has hit its lowest level for several years. In 2011 24 provinces adjusted the minimum wage, with an average increase of 22 percent; in 2012, the average growth rate of the minimum wage of 25 provinces fell to 20.2 percent; in 2013, the average growth rate of the minimum wage of 27 areas continued to drop to 17 percent.

Some experts think that while the growth rate of the minimum wage has declined, it is still much higher than the economic growth rate over the same period, and the sharp rise in the minimum wage could have a negative impact.

Su Hainan, vice president of China Labor Association and director of Remuneration Professional Committee said: "It is inevitable that labor costs in China will continue to rise due to the 'debts' we have incurred in the past."

However, he also said that any increase in the minimum wage must be based on growth in economic efficiency. GDP growth has declined recently, thus it is reasonable that increases in the minimum wage will slow down accordingly.

"The minimum wage can be a double edged sword. If it's too low, it cannot ensure the basic living standards of the population. If it's too high, companies have to fire workers if they can't afford the rising labor cost. As China's economic growth slows down, we should be very careful when adjusting the minimum wage," said Su.

This article is edited and translated from 上半年已有12省市調整最低工資 平均增幅約14%，Source: Economic Information