Minimum wage per hour in China 2020, by region

In 2020, the minimum hourly wage in Beijing was the highest in China at 24 yuan per hour. In the past decade, China has been shifting from a cheap labor driven economy to more matured, service-oriented markets and industries. While the economy continues to grow, prices and wages keep on increasing as well.

How do wages differ across the country?

China’s provinces and municipalities are divided into districts of different levels. Most provinces set different minimum wages for different districts depending on the cost of living and level of development. Usually, provincial capitals and major cities enjoy higher hourly wages than smaller towns and rural areas of the same province. In 2020, the highest minimum hourly wages in China were to be found in Beijing, Shanghai, and Tianjin municipalities with 24, 22, and 20.8 yuan respectively, whereas employees in Qinghai and Yunnan provinces who received a minimum wage were paid the least – between 13 and 15.2 yuan per hour. Minimum monthly wages that year were the highest in Shanghai and the lowest in Anhui province. The average annual salary in urban China was around 82,400 yuan in 2018.

What are the prospects?

Regional governments in China are required to update their minimum wages at least every few years. Gansu, Guizhou, Tianjin, Qinghai, and Zhejiang – provinces and municipalities that have not adjusted minimum wages in the past two years – are likely to do so in 2021. Along with economic development, increasing living standards, increasing prices and a shrinking labor force, overall minimum wages will likely continue growing in China.

Minimum wage per hour in China as of March 2020, by region

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Source

Release date

April 2020

Region

China

Survey time period

March 2020

Supplementary notes

Note: 1 yuan equals approximately 0.14 U.S. dollars and 0.13 euros (as of March 2020).

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