Shenzhen mayor Xu Qin announced this week that the minimum salary in the city will increase by 13% to 1808 yuan as of February 1. The minimum hourly wage will increase by 13.8% to 16.5 yuan, Shenzhen Special Zone Daily reports.

Local governments in China are required to raise their minimum wage levels at least once every two years. The last increase in the minimum salary was made in March this year when it was raised by 100 yuan to 1600 yuan a month.

Shenzhen has long had the highest minimum wage in China. Last year Wired published an op-ed arguing that the latest increase “could cause a ripple effect across the world’s major technology companies.”

Apple, HP, Samsung and Nokia are among the companies that have parts and products manufactured in Shenzhen, so the wage rise could impact the cost of computers, handsets and games consoles worldwide. Original equipment manufacturers such as Foxconn might start looking elsewhere for cheaper bases. But even though manufacturing costs are rising across China, the country is still highly attractive to manufacturers due to its infrastructure.

The announcement was made at the 101st executive meeting of the municipal government, a meeting at which the development of e-commerce was heavily emphasised.