MINIMUM AND AVERAGE SALARY IN CHINA

Today, the level of salaries in China is comparable to some EU member states and significantly exceeds the indicators of most Asian countries. The Chinese economy is one of the most powerful in the world, the local government promotes the attraction of foreign investment, trade relations are actively growing and modern technologies are being introduced. All this has a positive impact on the incomes of the local population and increases the welfare of the country as a whole.

Many Chinese companies need skilled labor from abroad, so work in China is currently in high demand. Major cities such as Beijing and Shanghai are especially popular with migrant workers. Despite a certain slowdown in the economic growth of the state, according to experts, the remuneration of Chinese workers in the coming years will only increase. Next, let's find out what is the minimum and average salary in China in 2023.

Minimum salary in China

China's Ministry of Human Resources and Social Security (MHRSS) has given regions a fair amount of independence in setting official minimum wage rates. Local authorities take into account many indicators, including economic growth, average wages, living standards, unemployment, food prices and real estate prices. A detailed analysis is carried out and then a decision is made as to whether the minimum wage should be raised.

Depending on the region, China's official minimum wage in 2023 ranges from 1,420 to 2,590 yuan per month, equivalent to 205 to 375 U.S. dollars. By law, regional and city governments must revise minimum wage rates at least once every two years. In 2023, the highest minimum wage is in Shanghai (2,590 yuan) and the lowest is in Liaoning province (1,420 yuan).

According to official data from China's National Bureau of Statistics and MHRSS, 19 regions increased the minimum wage in 2014, 27 in 2015, 9 in 2016, 20 in 2017, 15 in 2018, 7 in 2019, 3 in 2020, 20 in 2021, and 7 in 2022.

Hebei Province raised the minimum wage from January 1, 2023, and Qinghai and Anhui from February 1 and March 1, respectively. Eight regions – Shanghai, Guangdong, Beijing, Tianjin, Jiangsu, Shandong, Hubei and Zhejiang – have surpassed the 2,000 yuan ($315) mark in their monthly minimum wage standards.

Important. Due to the COVID-19 pandemic in 2020, most regions in China have postponed their plans to adjust their minimum wages. Only three provinces – Fujian, Qinghai and Guangxi – have raised their minimum wages.

Note. Depending on the grade (A, B,C,D) in some provinces in China, the minimum wage rates may be adjusted.

Average salary in China

According to official data from China's National Bureau of Statistics and MHRSS, the average salary in China in 2023 (in urban areas) is 106,837 yuan per year ($15,555) or 8,905 yuan per month ($1,295). The eastern region has the highest annual salary and growth rate at 124,019 yuan (10.4%). The city with the highest monthly salary is Beijing, where experienced professionals earn 11,521 yuan ($1,675) on average. Shanghai earns 10,967 yuan ($1,595) and Shenzhen 10,477 yuan ($1,525).

Over the past few years, wages in China have been rising faster than in the vast majority of countries in the Asia-Pacific (APAC) region and the world at large. In the last year alone, the incomes of local workers have increased by 9.7%. The highest average salary in China is recorded in the field of information transmission, software and information technology services (201,506 yuan per year), and the lowest earnings are in accommodation and food (53,631 yuan per year).

To give you an example, the average salary in Bulgaria is $1,035 per month, meaning the Chinese already have a higher income level. In addition, according to ZW HR Consulting, a large recruiting company from China, foreign specialists with work experience, in-demand skills, English and Chinese language skills can expect a salary that is at least 15-25% higher than the national average.

Note. *Average wages in China by industry are based on official data from the Chinese National Bureau of Statistics and MHRSS.

In terms of individual professions, the highest salaries in China are for financiers, bankers, investment brokers and lawyers, who on average receive 9,000-10,000 yuan per month ($1,310-1,455). Managers of companies and large IT projects earn between 14,000 and 19,000 yuan ($2,040-2,765) per month.

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