On July 1, 2006, the minimum wage in Shenzhen increased by over 17% in the city´s special economic zone (SEZ) and by over 20% in the surrounding suburbs. The minimum monthly wage in both areas went up by 120 yuan (US$15), rising to 810 yuan (US$101) and 700 yuan (US$87) respectively.  Shenzhen´s minimum monthly wage is the highest in China´s prosperous Guangdong Province, and only second to Shanghai in all of China.

China´s minimum wage system was implemented in 1993 to ensure basic living standards for the country´s low-income urban workers. It was expected that by 2004, the local minimum wage would be at least 40% of the area´s average wage. In most places, however, it has not kept up with rising incomes. In Beijing and Shanghai, the minimum wage has actually decreased in relative terms. In 2004, the minimum wage in Beijing represented just 20% of the city´s average income, down from 39% in 1993, while in Shanghai, the minimum wage was only 25% of average income, down from 36%.

The Chinese leadership has recently pressured local governments to increase their minimum wage levels, especially in China´s burgeoning export centers. It is expected that other cities in Guangdong Province´s Pearl River Delta will soon follow Shenzhen´s lead, as well as Beijing and Shanghai. The government´s pressure partly aims at narrowing the expanding income gap between rural and urban areas to reduce social tensions.