Average Minimum Wage in China

China’s minimum wage by law is the lowest income level that an employer is obligated to pay an
employee. Additional compensation supplied by the employer such as overtime pay, night shift bonuses,
transportation allowances, etc., are not included in the minimum wage, but some regions in China
include these compensations depending on its own rate of minimum wage considering their local
circumstances such as living expense, work opportunities, and level of development. As a matter of fact,
China actually has some of the greatest income disparity in the world because of how diverse its socio-
economic situation and employment levels there. Through the years, China’s monthly minimum wages
are increasing through the years as presented by the table below from Trading Economics (2022).

China’s minimum wage has been increasing even with the COVID-19 pandemic crisis. On 2019,
before the pandemic happen, the country’s average minimum wage was 2,480 Chinese Yuan per month
(370.76 US Dollar), the country maintained its minimum wage of 2,480 CNY through 2020 amidst the
crisis. On 2021, the economy starts to recover and wages in some regions in China have escalated, the
country’s average minimum wage have 2,590 CNY per month (387.20 USD). As of now, 2022, China still
maintained the 2,590 CNY according to Trading Economics (2022) using their econometric models, they
predict that China minimum monthly wages will have a long-term average value of about 2,750 CNY
(411.12 USD) in 2023.