Visitors enjoy the scenery on the West Lake in Hangzhou, Zhejiang province, on Monday. [Photo by Lian Guoqing/for China Daily]

The minimum wage rate is set based on local social and economic development, which comprehensively refers to per capita expenditures for food, Engel coefficient, consumer price index, average wage for on-post staff and other criteria.

The rise in minimum wages will increase the incomes of workers, in particular those of low income. Unemployment insurance benefits, sick pay and basic allowance will go up in line with minimum wage.

Zhejiang province in East China ranks 6th with highest monthly minimum wages as of March 2020.