Generally speaking, the purchasing power of the currency is the most intuitive reference to the price of rice, for example, in the Ming Dynasty in the 16th century, 1 tael of silver can buy 2 stones of rice, the weight is about 350 catties, of course, there are also 370 catties, or 400 catties. According to today's price level in the 21st century, Huangshi went to the supermarket to check the results, and the price of rice is generally moderate at 2 yuan, 1 catty or 1. 5 yuan and 1 catty, so 1 tael of silver is almost equal to about 600 yuan to 800 yuan.

If it is 5 taels of silver, then it is between 3,000 yuan and 4,000 yuan. However, considering that today's hybrid rice technology has greatly increased the yield of rice, the general value of rice will decrease, so the actual purchasing power of 1 tael should be greater than 800 yuan, and it will reach about 1,000 yuan.

Of course, comparing purchasing power in the 16th century with that in the 21st century is not very significant. Therefore, Huangshi wants to compare the Ming Dynasty across the sea, first of all, Huangshi regards its own territory Dongluo Island as a developed country, while the Ming Dynasty is only a developing country.

Assuming that the price of similar goods in two types of countries is the same, for example, it can be considered that an egg should be the same price in the Ming Dynasty and Dongluo Island, or a simple processed steamed bun should also be the same price, but if the quality of the same type of product is very different, then the natural price will also be different, for example, the price of a garment or hoe that has been processed through multiple processes should not be the same.

Moreover, Huangshi also regarded Dongluo Island and the Ming Dynasty as the relationship between two political and economic entities, so in the possible investment and trade, there is still the problem of exchange rate between the "yuan" of Dongluo Island and the "copper coin" of the Ming Dynasty.

The term "exchange rate", also known as the "foreign exchange market" or "exchange rate", in modern times refers to the ratio at which one country's currency is exchanged for another, and is the price of one currency to another. Since the names of the currencies of various countries in the world are different and the value of the currencies is also different, the currency of one country must set an exchange rate for the currencies of other countries, which is the exchange rate.

In the short run, a country's exchange rate is determined by the demand and supply of the country's currency for foreign currencies. Foreigners' purchases of domestic goods, investment in their home countries, and the use of their own currencies for speculation can affect the demand for their own currency. The desire of the country's residents to buy foreign products, investment in foreign countries, and foreign exchange speculation affect the country's currency supply. In the long run, the main factors influencing exchange rates are, inter alia, relative price levels, tariffs and quotas, preference for domestic goods over foreign goods, and productivity.

Because Dongluo Island now has such a large territory, such a small population, and the sea fish it produces are not exported to the Ming Dynasty on the other side of the sea, the exchange rate between the "renminbi" and the "copper coin" cannot be a "floating exchange rate", but can only use a fixed exchange rate, that is, an exchange rate formulated and announced by him, and can only fluctuate within a certain range.

In this way, the amount of copper coins that can be exchanged for 1 cent "RMB" is determined by him, but he has made up his mind before, Dongluo Island will be isolated from the outside world for a long time, so the main trade object of Dongluo Island is still modern society. Therefore, the exchange rate of "RMB" and "copper coin" is not in a hurry to be formulated, but the exchange rate with the modern "RMB" has been set early on, 1:10, that is to say, 1 yuan of Dongluo Island "RMB" is equal to 10 yuan of modern "RMB".

Huangshi had planned to set aside 40 million yuan as a "gold reserve" and implement the "gold standard", under which the value of each unit of currency was equivalent to a certain amount of modern yuan, so he could actually issue 4 million "yuan".

After all, this was only in the early days of banknote issuance, and the amount of banknotes issued must be guaranteed by the equivalent of modern renminbi to ensure the value of Dongluo Island banknotes. However, if the economic development in the future is expanding day by day, and the resources for trade with modern society are not abundant enough, then the inflow and accumulation of modern renminbi will be relatively limited. In the later period, paper money continued to be issued only through its own coercive power and credibility as a guarantee, so that the value of paper money no longer depends on how much yuan it can be exchanged for, but on the social wealth on the territory.

The amount of money to be issued at that time makes Huangshi a little headache when he thinks about it now, because it is a fairly basic problem in macroeconomics, but there are many angles of corresponding explanations, and there is a most basic formula is the "monetary quantity theory", which is the quantitative equation: MV=PY.

Among them, M is the amount of money required for circulation, V is the velocity of money, that is, the number of times a banknote changes hands in a certain period, while P is the price level, and Y is the real GDP.

The right side of the formula is the nominal GDP, and the M on the left is not the amount of money issued in the strict sense, but it is the amount of money that is actually needed for circulation. Therefore, a basic money demand function is to divide the V on the left, and the amount of money issued is not far from this eight or nine.

Of course, in fact, the issuance of money is controlled according to certain rules, and GDP is an important factor in the rules. It's just that how to calculate GDP is not what Huangshi knows about it, which doesn't even have the level of half a bucket of water in economics. It's just that it's still in the early stage of currency issuance, and it's still far from the later stage, so he still has time to study it slowly, or find someone to study it.

……

As for why Huangshi should consider the distributable income of the residents, this is because this factor is also related to the price level that he is going to set on Dongluo Island, if the price of goods is very high, and the wages set by Huangshi for them are too low, then their disposable income will be too low, then it will inhibit their consumption behavior, which is not conducive to the economic cycle in the entire political system, they will be frugal, and they will only store money, then the amount of money circulating in the market will shrink significantly, resulting in a shortage of money.

Therefore, Huangshi has to implement a policy of high income, high taxes, and low prices to stimulate the consumption power of the island's residents. Between income, taxes, and prices, he also has to refer to various factors, the most important of which is the Engel coefficient.

The Engel coefficient is based on the food expenditure of the population to maintain the minimum need, divided by the Engel coefficient of the lowest income group in the same period, to obtain the minimum standard of living. At the same time, it is also a commonly used method to determine the poverty line internationally. The Engel coefficient is the ratio of household food expenditure to total income, which decreases with the increase of household income, that is, the larger the Engel coefficient, the poorer it is.

The concept of this Engel coefficient is that because the consumption of food is basic and will not increase with the increase of income or consumption, it can be regarded as a rigid demand. Therefore, when a person's or family's income or consumption increases, his or her food expenditure as a percentage of total consumption decreases. Thus, food expenditure as a percentage of total consumption, i.e., Engel's coefficient, can be cited to determine someone's quality of life. The higher the Engel coefficient, the worse the quality of life, and the lower the coefficient, the higher the quality of life.

Yellowstone would have to find a minimum consumption point for most households on the island based on food, clothing, and fuel, which would be 66 percent of the living budget of poor households, and between 35 percent and 40 percent for middle-income households.

In this way, when Huangshi set a penny for a steamed bun, he smiled, so calculated, An Ruyi and the others are the same as themselves back then, and the income from the salary can buy 5,000 steamed buns, which can be regarded as entering the middle and upper income class.

And if Huangshi asks Qu'er's restaurant to price a meat dish for 4 cents, a vegetarian dish for 2 cents, a bowl of broth for 3 cents, and a rice dish for 2 cents, then they will have to spend 3 jiao a day, and only spend 9 yuan a month, plus the consumption of snacks, then the consumption of food accounts for almost 30% to 40%.

……

The level of wages is another consideration when Huangshi sets the salary and price level for An Ruyi, and there are several types of salary grades, such as technical salary grades, job salary grades and post salary grades, etc.

Among them, the technical wage scale is based on the technical complexity, accuracy and responsibility of the work, as well as the knowledge and production skills that the worker should have to complete the work, and determines the technical salary level on this basis. It is a measure of the technical level of laborers, and is the main basis for determining wage grades and wage standards.

The salary level of the post is determined according to the technical complexity, complexity of labor and the size of responsibility of various positions.

For example, the salary scale of the position is determined according to the specific tasks held by the leaders, engineering technicians and managers in the enterprise. It is applicable to leading cadres, technical personnel and staff who take on different positions. The wage scale reflects the difference in the average amount of social labor provided by workers to society, and is the basis for determining the difference in the number of wages of workers.

Dongluo Island is now just a large enterprise, if the wage level can be reasonably selected, then it is conducive to correctly handling the relationship between various departments and within the department, then it is conducive to encouraging the people on the island to improve their technical level and labor proficiency, so as to promote the improvement of labor productivity on the island.

Originally, Huangshi also wanted to imitate the 1956 system of the People's Republic of China and adopt the method of administrative 24 levels for grading, because with the administrative rank, then the issue of the rank of officers in the army can also be determined, but since Dongluo Island is only an enterprise at present, the content and composition of its structural wage system cannot be simply copied from this set of methods.

He had to make different specific regulations according to the different conditions on the island, and according to different positions, different needs, and different requirements, he determined six components of wages, one was the basic salary, the second was the post salary, the third was the skill wage, the fourth was the benefit wage, the fifth was the floating wage, and the sixth was the annual merit wage. Generally speaking, the purchasing power of the currency is the most intuitive reference to the price of rice, for example, in the Ming Dynasty in the 16th century, 1 tael of silver can buy 2 stones of rice, the weight is about 350 catties, of course, there are also 370 catties, or 400 catties. According to today's price level in the 21st century, Huangshi went to the supermarket to check the results, and the price of rice is generally moderate at 2 yuan, 1 catty or 1. 5 yuan and 1 catty, so 1 tael of silver is almost equal to about 600 yuan to 800 yuan.

If it is 5 taels of silver, then it is between 3,000 yuan and 4,000 yuan. However, considering that today's hybrid rice technology has greatly increased the yield of rice, the general value of rice will decrease, so the actual purchasing power of 1 tael should be greater than 800 yuan, and it will reach about 1,000 yuan.

Of course, comparing purchasing power in the 16th century with that in the 21st century is not very significant. Therefore, Huangshi wants to compare the Ming Dynasty across the sea, first of all, Huangshi regards its own territory Dongluo Island as a developed country, while the Ming Dynasty is only a developing country.

Assuming that the price of similar goods in two types of countries is the same, for example, it can be considered that an egg should be the same price in the Ming Dynasty and Dongluo Island, or a simple processed steamed bun should also be the same price, but if the quality of the same type of product is very different, then the natural price will also be different, for example, the price of a garment or hoe that has been processed through multiple processes should not be the same.

Moreover, Huangshi also regarded Dongluo Island and the Ming Dynasty as the relationship between two political and economic entities, so in the possible investment and trade, there is still the problem of exchange rate between the "yuan" of Dongluo Island and the "copper coin" of the Ming Dynasty.

The term "exchange rate", also known as the "foreign exchange market" or "exchange rate", in modern times refers to the ratio at which one country's currency is exchanged for another, and is the price of one currency to another. Since the names of the currencies of various countries in the world are different and the value of the currencies is also different, the currency of one country must set an exchange rate for the currencies of other countries, which is the exchange rate.

In the short run, a country's exchange rate is determined by the demand and supply of the country's currency for foreign currencies. Foreigners' purchases of domestic goods, investment in their home countries, and the use of their own currencies for speculation can affect the demand for their own currency. The desire of the country's residents to buy foreign products, investment in foreign countries, and foreign exchange speculation affect the country's currency supply. In the long run, the main factors influencing exchange rates are, inter alia, relative price levels, tariffs and quotas, preference for domestic goods over foreign goods, and productivity.

Because Dongluo Island now has such a large territory, such a small population, and the sea fish it produces are not exported to the Ming Dynasty on the other side of the sea, the exchange rate between the "renminbi" and the "copper coin" cannot be a "floating exchange rate", but can only use a fixed exchange rate, that is, an exchange rate formulated and announced by him, and can only fluctuate within a certain range.

In this way, the amount of copper coins that can be exchanged for 1 cent "RMB" is determined by him, but he has made up his mind before, Dongluo Island will be isolated from the outside world for a long time, so the main trade object of Dongluo Island is still modern society. Therefore, the exchange rate of "RMB" and "copper coin" is not in a hurry to be formulated, but the exchange rate with the modern "RMB" has been set early on, 1:10, that is to say, 1 yuan of Dongluo Island "RMB" is equal to 10 yuan of modern "RMB".

Huangshi had planned to set aside 40 million yuan as a "gold reserve" and implement the "gold standard", under which the value of each unit of currency was equivalent to a certain amount of modern yuan, so he could actually issue 4 million "yuan".

After all, this was only in the early days of banknote issuance, and the amount of banknotes issued must be guaranteed by the equivalent of modern renminbi to ensure the value of Dongluo Island banknotes. However, if the economic development in the future is expanding day by day, and the resources for trade with modern society are not abundant enough, then the inflow and accumulation of modern renminbi will be relatively limited. In the later period, paper money continued to be issued only through its own coercive power and credibility as a guarantee, so that the value of paper money no longer depends on how much yuan it can be exchanged for, but on the social wealth on the territory.

The amount of money to be issued at that time makes Huangshi a little headache when he thinks about it now, because it is a fairly basic problem in macroeconomics, but there are many angles of corresponding explanations, and there is a most basic formula is the "monetary quantity theory", which is the quantitative equation: MV=PY.

Among them, M is the amount of money required for circulation, V is the velocity of money, that is, the number of times a banknote changes hands in a certain period, while P is the price level, and Y is the real GDP.

The right side of the formula is the nominal GDP, and the M on the left is not the amount of money issued in the strict sense, but it is the amount of money that is actually needed for circulation. Therefore, a basic money demand function is to divide the V on the left, and the amount of money issued is not far from this eight or nine.

Of course, in fact, the issuance of money is controlled according to certain rules, and GDP is an important factor in the rules. It's just that how to calculate GDP is not what Huangshi knows about it, which doesn't even have the level of half a bucket of water in economics. It's just that it's still in the early stage of currency issuance, and it's still far from the later stage, so he still has time to study it slowly, or find someone to study it.

……

As for why Huangshi should consider the distributable income of the residents, this is because this factor is also related to the price level that he is going to set on Dongluo Island, if the price of goods is very high, and the wages set by Huangshi for them are too low, then their disposable income will be too low, then it will inhibit their consumption behavior, which is not conducive to the economic cycle in the entire political system, they will be frugal, and they will only store money, then the amount of money circulating in the market will shrink significantly, resulting in a shortage of money.

Therefore, Huangshi has to implement a policy of high income, high taxes, and low prices to stimulate the consumption power of the island's residents. Between income, taxes, and prices, he also has to refer to various factors, the most important of which is the Engel coefficient.

The Engel coefficient is based on the food expenditure of the population to maintain the minimum need, divided by the Engel coefficient of the lowest income group in the same period, to obtain the minimum standard of living. At the same time, it is also a commonly used method to determine the poverty line internationally. The Engel coefficient is the ratio of household food expenditure to total income, which decreases with the increase of household income, that is, the larger the Engel coefficient, the poorer it is.

The concept of this Engel coefficient is that because the consumption of food is basic and will not increase with the increase of income or consumption, it can be regarded as a rigid demand. Therefore, when a person's or family's income or consumption increases, his or her food expenditure as a percentage of total consumption decreases. Thus, food expenditure as a percentage of total consumption, i.e., Engel's coefficient, can be cited to determine someone's quality of life. The higher the Engel coefficient, the worse the quality of life, and the lower the coefficient, the higher the quality of life.

Yellowstone would have to find a minimum consumption point for most households on the island based on food, clothing, and fuel, which would be 66 percent of the living budget of poor households, and between 35 percent and 40 percent for middle-income households.

In this way, when Huangshi set a penny for a steamed bun, he smiled, so calculated, An Ruyi and the others are the same as themselves back then, and the income from the salary can buy 5,000 steamed buns, which can be regarded as entering the middle and upper income class.

And if Huangshi asks Qu'er's restaurant to price a meat dish for 4 cents, a vegetarian dish for 2 cents, a bowl of broth for 3 cents, and a rice dish for 2 cents, then they will have to spend 3 jiao a day, and only spend 9 yuan a month, plus the consumption of snacks, then the consumption of food accounts for almost 30% to 40%.

……

The level of wages is another consideration when Huangshi sets the salary and price level for An Ruyi, and there are several types of salary grades, such as technical salary grades, job salary grades and post salary grades, etc.

Among them, the technical wage scale is based on the technical complexity, accuracy and responsibility of the work, as well as the knowledge and production skills that the worker should have to complete the work, and determines the technical salary level on this basis. It is a measure of the technical level of laborers, and is the main basis for determining wage grades and wage standards.

The salary level of the post is determined according to the technical complexity, complexity of labor and the size of responsibility of various positions.

For example, the salary scale of the position is determined according to the specific tasks held by the leaders, engineering technicians and managers in the enterprise. It is applicable to leading cadres, technical personnel and staff who take on different positions. The wage scale reflects the difference in the average amount of social labor provided by workers to society, and is the basis for determining the difference in the number of wages of workers.

Dongluo Island is now just a large enterprise, if the wage level can be reasonably selected, then it is conducive to correctly handling the relationship between various departments and within the department, then it is conducive to encouraging the people on the island to improve their technical level and labor proficiency, so as to promote the improvement of labor productivity on the island.

Originally, Huangshi also wanted to imitate the 1956 system of the People's Republic of China and adopt the method of administrative 24 levels for grading, because with the administrative rank, then the issue of the rank of officers in the army can also be determined, but since Dongluo Island is only an enterprise at present, the content and composition of its structural wage system cannot be simply copied from this set of methods.

He had to make different specific regulations according to the different conditions on the island, and according to different positions, different needs, and different requirements, he determined six components of wages, one was the basic salary, the second was the post salary, the third was the skill wage, the fourth was the benefit wage, the fifth was the floating wage, and the sixth was the annual merit wage. Generally speaking, the purchasing power of the currency is the most intuitive reference to the price of rice, for example, in the Ming Dynasty in the 16th century, 1 tael of silver can buy 2 stones of rice, the weight is about 350 catties, of course, there are also 370 catties, or 400 catties. According to today's price level in the 21st century, Huangshi went to the supermarket to check the results, and the price of rice is generally moderate at 2 yuan, 1 catty or 1. 5 yuan and 1 catty, so 1 tael of silver is almost equal to about 600 yuan to 800 yuan.

If it is 5 taels of silver, then it is between 3,000 yuan and 4,000 yuan. However, considering that today's hybrid rice technology has greatly increased the yield of rice, the general value of rice will decrease, so the actual purchasing power of 1 tael should be greater than 800 yuan, and it will reach about 1,000 yuan.

Of course, comparing purchasing power in the 16th century with that in the 21st century is not very significant. Therefore, Huangshi wants to compare the Ming Dynasty across the sea, first of all, Huangshi regards its own territory Dongluo Island as a developed country, while the Ming Dynasty is only a developing country.

Assuming that the price of similar goods in two types of countries is the same, for example, it can be considered that an egg should be the same price in the Ming Dynasty and Dongluo Island, or a simple processed steamed bun should also be the same price, but if the quality of the same type of product is very different, then the natural price will also be different, for example, the price of a garment or hoe that has been processed through multiple processes should not be the same.

Moreover, Huangshi also regarded Dongluo Island and the Ming Dynasty as the relationship between two political and economic entities, so in the possible investment and trade, there is still the problem of exchange rate between the "yuan" of Dongluo Island and the "copper coin" of the Ming Dynasty.

The term "exchange rate", also known as the "foreign exchange market" or "exchange rate", in modern times refers to the ratio at which one country's currency is exchanged for another, and is the price of one currency to another. Since the names of the currencies of various countries in the world are different and the value of the currencies is also different, the currency of one country must set an exchange rate for the currencies of other countries, which is the exchange rate.

In the short run, a country's exchange rate is determined by the demand and supply of the country's currency for foreign currencies. Foreigners' purchases of domestic goods, investment in their home countries, and the use of their own currencies for speculation can affect the demand for their own currency. The desire of the country's residents to buy foreign products, investment in foreign countries, and foreign exchange speculation affect the country's currency supply. In the long run, the main factors influencing exchange rates are, inter alia, relative price levels, tariffs and quotas, preference for domestic goods over foreign goods, and productivity.

Because Dongluo Island now has such a large territory, such a small population, and the sea fish it produces are not exported to the Ming Dynasty on the other side of the sea, the exchange rate between the "renminbi" and the "copper coin" cannot be a "floating exchange rate", but can only use a fixed exchange rate, that is, an exchange rate formulated and announced by him, and can only fluctuate within a certain range.

In this way, the amount of copper coins that can be exchanged for 1 cent "RMB" is determined by him, but he has made up his mind before, Dongluo Island will be isolated from the outside world for a long time, so the main trade object of Dongluo Island is still modern society. Therefore, the exchange rate of "RMB" and "copper coin" is not in a hurry to be formulated, but the exchange rate with the modern "RMB" has been set early on, 1:10, that is to say, 1 yuan of Dongluo Island "RMB" is equal to 10 yuan of modern "RMB".

Huangshi had planned to set aside 40 million yuan as a "gold reserve" and implement the "gold standard", under which the value of each unit of currency was equivalent to a certain amount of modern yuan, so he could actually issue 4 million "yuan".

After all, this was only in the early days of banknote issuance, and the amount of banknotes issued must be guaranteed by the equivalent of modern renminbi to ensure the value of Dongluo Island banknotes. However, if the economic development in the future is expanding day by day, and the resources for trade with modern society are not abundant enough, then the inflow and accumulation of modern renminbi will be relatively limited. In the later period, paper money continued to be issued only through its own coercive power and credibility as a guarantee, so that the value of paper money no longer depends on how much yuan it can be exchanged for, but on the social wealth on the territory.

The amount of money to be issued at that time makes Huangshi a little headache when he thinks about it now, because it is a fairly basic problem in macroeconomics, but there are many angles of corresponding explanations, and there is a most basic formula is the "monetary quantity theory", which is the quantitative equation: MV=PY.

Among them, M is the amount of money required for circulation, V is the velocity of money, that is, the number of times a banknote changes hands in a certain period, while P is the price level, and Y is the real GDP.

The right side of the formula is the nominal GDP, and the M on the left is not the amount of money issued in the strict sense, but it is the amount of money that is actually needed for circulation. Therefore, a basic money demand function is to divide the V on the left, and the amount of money issued is not far from this eight or nine.

Of course, in fact, the issuance of money is controlled according to certain rules, and GDP is an important factor in the rules. It's just that how to calculate GDP is not what Huangshi knows about it, which doesn't even have the level of half a bucket of water in economics. It's just that it's still in the early stage of currency issuance, and it's still far from the later stage, so he still has time to study it slowly, or find someone to study it.

……

As for why Huangshi should consider the distributable income of the residents, this is because this factor is also related to the price level that he is going to set on Dongluo Island, if the price of goods is very high, and the wages set by Huangshi for them are too low, then their disposable income will be too low, then it will inhibit their consumption behavior, which is not conducive to the economic cycle in the entire political system, they will be frugal, and they will only store money, then the amount of money circulating in the market will shrink significantly, resulting in a shortage of money.

Therefore, Huangshi has to implement a policy of high income, high taxes, and low prices to stimulate the consumption power of the island's residents. Between income, taxes, and prices, he also has to refer to various factors, the most important of which is the Engel coefficient.

The Engel coefficient is based on the food expenditure of the population to maintain the minimum need, divided by the Engel coefficient of the lowest income group in the same period, to obtain the minimum standard of living. At the same time, it is also a commonly used method to determine the poverty line internationally. The Engel coefficient is the ratio of household food expenditure to total income, which decreases with the increase of household income, that is, the larger the Engel coefficient, the poorer it is.

The concept of this Engel coefficient is that because the consumption of food is basic and will not increase with the increase of income or consumption, it can be regarded as a rigid demand. Therefore, when a person's or family's income or consumption increases, his or her food expenditure as a percentage of total consumption decreases. Thus, food expenditure as a percentage of total consumption, i.e., Engel's coefficient, can be cited to determine someone's quality of life. The higher the Engel coefficient, the worse the quality of life, and the lower the coefficient, the higher the quality of life.

Yellowstone would have to find a minimum consumption point for most households on the island based on food, clothing, and fuel, which would be 66 percent of the living budget of poor households, and between 35 percent and 40 percent for middle-income households.

In this way, when Huangshi set a penny for a steamed bun, he smiled, so calculated, An Ruyi and the others are the same as themselves back then, and the income from the salary can buy 5,000 steamed buns, which can be regarded as entering the middle and upper income class.

And if Huangshi asks Qu'er's restaurant to price a meat dish for 4 cents, a vegetarian dish for 2 cents, a bowl of broth for 3 cents, and a rice dish for 2 cents, then they will have to spend 3 jiao a day, and only spend 9 yuan a month, plus the consumption of snacks, then the consumption of food accounts for almost 30% to 40%.

……

The level of wages is another consideration when Huangshi sets the salary and price level for An Ruyi, and there are several types of salary grades, such as technical salary grades, job salary grades and post salary grades, etc.

Among them, the technical wage scale is based on the technical complexity, accuracy and responsibility of the work, as well as the knowledge and production skills that the worker should have to complete the work, and determines the technical salary level on this basis. It is a measure of the technical level of laborers, and is the main basis for determining wage grades and wage standards.

The salary level of the post is determined according to the technical complexity, complexity of labor and the size of responsibility of various positions.

For example, the salary scale of the position is determined according to the specific tasks held by the leaders, engineering technicians and managers in the enterprise. It is applicable to leading cadres, technical personnel and staff who take on different positions. The wage scale reflects the difference in the average amount of social labor provided by workers to society, and is the basis for determining the difference in the number of wages of workers.

Dongluo Island is now just a large enterprise, if the wage level can be reasonably selected, then it is conducive to correctly handling the relationship between various departments and within the department, then it is conducive to encouraging the people on the island to improve their technical level and labor proficiency, so as to promote the improvement of labor productivity on the island.

Originally, Huangshi also wanted to imitate the 1956 system of the People's Republic of China and adopt the method of administrative 24 levels for grading, because with the administrative rank, then the issue of the rank of officers in the army can also be determined, but since Dongluo Island is only an enterprise at present, the content and composition of its structural wage system cannot be simply copied from this set of methods.

He had to make different specific regulations according to the different conditions on the island, and according to different positions, different needs, and different requirements, he determined six components of wages, one was the basic salary, the second was the post salary, the third was the skill wage, the fourth was the benefit wage, the fifth was the floating wage, and the sixth was the annual merit wage.