(Yicai Global) Sept. 2 -- Beijing's government has recommended that local companies with steady profit growth increase salaries by between 8 percent and 8.5 percent this year.

The guideline, released today by the Beijing Municipal Human Resources and Social Security Bureau, is not mandatory and is made based on annual economic development targets. It is intended mainly as a reference for companies and their employees when negotiating reasonable wage increases.

From this year, the capital will no longer issue an upper limit, or red line, for wage hikes that rapidly expanding companies should not exceed, the bureau said.

The lower limit is set at 3.5 percent for 2019. Firms with little or moderately slowing growth should increase pay by at least this amount.

Loss-making companies that have difficulty paying salaries are not obliged to raise wages and can even lower them after consultation with the labor union and employee representatives. But salaries must not fall below the minimum wage, the bureau said.