Significant wage rises expected by German firms

German companies in China expect significant wage increases in 2013 as competition intensifies to retain qualified staff, especially blue-collar workers, in second-tier cities, the German Chamber of Commerce in China said on Thursday.

"German firms in China will see a wide range of wage increases in 2013," the chamber said in its Flash Survey on Wage Trends report, which polled 452 companies from March 4 to 11.

"While some companies don't plan to increase wages at all or only at very low levels, others are facing severe competition to retain qualified staff and need to substantially increase wages by up to 50 percent for some positions," it added.