Shenzhen will raise its mandatory minimum wage by as much as 20 per cent with effect from next month, in a move that is likely to be followed by other cities in China’s Pearl River Delta manufacturing heartland.

In an announcement posted on its website, the city’s labour bureau said the minimum monthly wage inside its special economic zone, which borders Hong Kong, will be increased 17 per cent to Rmb810 ($100). Outside the zone, the minimum wage will be raised 20 per cent to Rmb700.