The Human Resources and Social Security Bureau in Nanjing has issued guidelines ordering all companies in the city to raise workers wages. The measures say the wage hike cannot be lower than 6%.

Following through with the new measure will be a key factor in evaluating a company's performance at the end of the year.

The most popular topic for workers in Nanjing is the upcoming salary increase. In July, they all should be getting paid more.

Wang Baoming, Worker, Huayang Electronics Co. LTD. Nanjing, said, "Last year we were told the pay hike was at least 5%. This year the government set the threshold at 6%. Everyone is elated."

Many companies cancelled a much-talked-about pay raise last year, blaming financial difficulties caused by the global economic downturn. The Nanjing government made the measures compulsory this time, hoping to check irresponsible behaviors.

Jiang Ping, Deputy Director, Human Resource Dept. Nanjing, said, "Some companies didn't obey our guidelines. We have to use our administrative power to make sure employers follow the rules. We'll grade them by their behavior, and we can even issue penalties if they fail to obey the new regulation."

China's newly-amended labor laws allows employees to select representatives to negotiate salary arrangements with employers. This mechanism is not yet widely accepted by Chinese employers, as they are used to dealing with similar matters with a trade union. Workers say they now feel confident in negotiating payment issues with the new regulations backing them.

Liu Zhiqiang, Worker Huayang Electronics Co. LTD. Nanjing, said, "Employers always want to maximize interests. But protecting workers' welfare should also be in employers' interests. The new guideline will lead companies to find a new balance in employee - employer relations."

According to the guideline, workers in key positions and involved in arduous and dangerous jobs should be given larger pay raises, and that efforts should be made to narrow the income gap within the same company.