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Retained wages

Legal terminology
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Retained wages refer to the part of wages reserved and paid because the original wages of employees formed for some reason are higher than the current level wage standards. It is a transitional method adopted by the state to ensure that the wages of workers with higher original wages will not decline. The principle for handling the reserved wages is that the wages reserved according to the national regulations should be paid to the employees, but should be offset in the future wage growth of the employees. The calculation and payment of piece rate wages, bonuses, overtime wages and allowances for employees shall be based on their current standard wages, excluding retained wages; However, when calculating and paying wages and pensions for work stoppage, work-related injury leave, maternity leave, the retained wages shall be included. [1]
Chinese name
Retained wages
Foreign name
Reservation wage
Meaning
People outside the labor force
Nature
force
Citation explanation
For job seekers in the real economy, generally speaking, they have an expectation of future career wages according to their own ability level and the observed wage distribution in the labor market. This psychological price Wage level It is called "Reservation Wages". In theory, wage retention should be the result of workers' 'second best position' remuneration opportunity cost )。
Another solution:
Salary retention means that state-owned enterprises are dealing with old employees, especially former state-owned employees pay Common means of wage decline contradiction after reform. Generally, these employees Salary reform The difference between the former and the latter is regarded as the reserved salary, which will be offset with the subsequent salary adjustment.