According to Article 71 of the Labor Contract Law, the clause on labor remuneration is an essential clause in a labor contract. As to how to reach an agreement on labor compensation, legal rights are given to the employer and employee. That is, both parties should reach an agreement through consultation. Practice dictated by existing regulations when the Labor Contract Law went into effect and still applicable stipulates that labor compensation should be higher than the local minimum wage and no less than any amount agreed upon in a collective contract. In addition, agreement on the following points should be reached: (1) The amount of monthly wages paid to the employee by the employer; (2) The wage during the probationary period; (3) The time and method of monthly wage payment; (4) Employee rights regarding wage adjustment; (5) Wage payment under special circumstances; (6) Conditions on wage deductions.

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