China to introduce real-name registration for migrant workers

Migrant workers are having lunch in Guangzhou, south China's Guangdong province on May 16, 2013. [Photo/CFP]

China is set to introduce a real-name registration system for migrant workers to better protect their rights in cases of salary cuts or pay defaults, according to a document issued by the State Council.

Cases of salary cuts or pay defaults involving migrant workers increased by 34 percent in the first three quarters of 2015, partly due to the ongoing economic downturn, according to the All-China Federation of Trade Unions, saying such cases and other violations of workers' rights are still rampant.

Main contractors of engineering projects would be required to sign labor contracts with migrant workers in the first place before the start of construction work, said Qiu Xiaoping, vice-minister of the Ministry of Human Resources and Social Security.

The government would promote "proxy of wage payment", in which salary payment for migrant workers employed by sub contractors are all entrusted to main contractors and banks, he said.

Enterprises must also open special accounts at banks that are only used for salary payment for migrant workers.

Qiu said the government would step up its efforts in cracking down on pay defaults of migrant workers, aiming to achieve "zero pay defaults" by 2020.

He warned that any companies found guilty of defaulting on pay would be blacklisted in terms of their credit across the country and serious offenders are also likely to be prosecuted for their criminal liabilities.

According to the business news website Yicai.com, only 30 percent of manufacturing companies can pay wages on time. Many such companies are facing financial strain and have to lay off large numbers of workers.

In 2014, there were 274 million migrant workers in China, with an average monthly income of 2,864 yuan ($572.8), according to a National Bureau of Statistics report released in April 2014.

The report said 0.8 percent of the migrant workers, or 2.19 million, did not receive their pay on time.

The average salary amount in default was 9,511 yuan. More than 60 percent of the migrant workers did not sign labor contracts with employers.