Salary Extremes Among Employees in Chinese Companies

Beijing and Shanghai Non-Private Sector Employees' Annual Salary Exceeds 190,000 Yuan
Private Sector Salaries Also Reach 100,000 Yuan... Widening Regional and Industry Gaps in China

[Asia Economy Senior Reporter Cho Young-shin] Last year, the average annual salary of employees in non-state-owned enterprises in China (including state-owned and foreign-invested enterprises, as well as companies invested from Hong Kong, Macau, and Taiwan) surpassed 100,000 yuan. This is the first time the average annual salary in China's non-state-owned enterprises has exceeded 100,000 yuan.

The average annual salary last year more than doubled compared to 2012, indicating a steep rise in labor costs in China, which is expected to impact the cost competitiveness of companies operating in China.

[Image source=Yonhap News]

Additionally, the wage gap between regions remains significant, highlighting the persistent challenge of balanced regional development.

According to local Chinese media such as Beijing Business Daily on the 22nd, the average annual salary of employees in non-state-owned enterprises across 31 provinces, municipalities, and autonomous regions in China was 106,837 yuan (approximately 20.22 million KRW). This represents a 9.7% (9,458 yuan) increase compared to the previous year.

Local Chinese media, citing the National Bureau of Statistics Statistical Yearbook, reported that the average annual salary of employees in non-state-owned enterprises last year more than doubled compared to 46,769 yuan in 2012.

Among the 31 provinces, municipalities, and autonomous regions, 10 areas recorded average annual salaries exceeding 100,000 yuan, including Beijing, Shanghai, Zhejiang Province, Guangdong Province, Jiangsu Province, Qinghai, Chongqing, and Xizang (Tibet).

Regionally, Beijing and Shanghai ranked first and second with average annual salaries of 194,651 yuan and 191,844 yuan, respectively. The province with the lowest average annual salary among the 31 regions was Henan Province at 74,872 yuan, showing a difference of more than 110,000 yuan compared to Beijing.

By industry, the IT and telecommunications sector had the highest average annual salary at 201,506 yuan, followed by the science and technology services industry and the financial industry, each exceeding 150,000 yuan.

Notably, the average annual salary of employees in the financial industry within Shanghai's non-state-owned enterprises was recorded at 397,655 yuan, reaffirming Shanghai's status as China's financial hub.

Last year, the average annual salary in China's private enterprises was 62,884 yuan, an 8.9% increase from the previous year. Among the 31 provinces, municipalities, and autonomous regions, Beijing's average salary exceeded 100,000 yuan (100,011 yuan), with Shanghai and Guangdong ranking second and third at 96,011 yuan and 73,231 yuan, respectively.

The province with the lowest average annual salary in China's private enterprises was Heilongjiang at only 42,071 yuan. Along with Heilongjiang, Jilin and Liaoning?collectively known as the three northeastern provinces?had average salaries of 47,886 yuan and 50,169 yuan, respectively, significantly below the overall average.

Local Chinese media forecast that due to the resurgence of COVID-19 and the resulting lockdown policies this year, the average annual salaries in both non-state-owned and private enterprises in 2022 may decline somewhat.

This content was produced with the assistance of AI translation services.