Minimum Wage in China: Rates, Trends & Compliance

What Is the Minimum Wage in China?

In China, the minimum wage is not set nationally but varies by region. Different provinces and municipalities determine their own minimum wage levels, with economically advanced regions such as Beijing, Shanghai, and Shenzhen having higher wages due to the higher cost of living. The minimum wage is adjusted regularly by local governments to account for inflation and regional economic conditions.

As of 2025, some notable examples of minimum wage include:

• ‍Shanghai: ¥2,690 per month (approximately $370 USD)
• ‍Beijing: ¥2,420 per month (approximately $330 USD)
• ‍Shandong (e.g., Jinan, Qingdao): ¥2,200 per month
• ‍Wuhan: ¥2,210 per month (approximately $300 USD)
• ‍Guangxi: ¥1,690 per month (approximately $230 USD)

Minimum Wage in China Based on Region

Average vs Reasonable vs Typical Minimum Wages

The average minimum wage across China generally falls between CNY 1,850 to CNY 2,690 monthly, with wide variation between regions.

• Reasonable Minimum Wage: In major cities like Shanghai and Beijing, where the cost of living is higher, a reasonable monthly wage typically ranges from ¥2,420 to ¥2,690.
 
• Typical Minimum Wage: This wage tends to be lower in smaller cities and rural areas. In less developed areas, the typical minimum wage may range from ¥1,690 and ¥2,100 monthly.

For instance, workers in highly competitive industries or high-cost cities may receive wages closer to the higher end of the range. Conversely, wages in rural or less developed cities and regions are typically closer to the lower end.

How Does Minimum Wage Apply to Different Workers in China?

Full-time employees, part-time workers, interns, and expatriates are all subject to the minimum wage laws in China, though the application may differ based on their employment status.

Full-Time Employee Wages

Full-time employees in China are entitled to the minimum wage, which varies by region. These employees typically work 40 hours per week. In major cities such as Beijing and Shanghai, full-time employees generally earn wages that are closer to the upper end of the scale, particularly in skilled or specialized industries.

Part-Time Employee Wages

Part-time employees in China are also entitled to the minimum wage on an hourly basis. However, the total wage they receive will depend on the number of hours worked. Part-time workers must be paid at least the minimum hourly wage, which is the same as full-time employees, though they may not earn as much due to fewer working hours.

Interns and Trainees

Interns and trainees may not always receive the full minimum wage, particularly if their position is classified as a learning or training opportunity rather than a formal employment contract. Unpaid internships are common in some sectors, particularly in fields like education, where internships are a part of educational programs. However, some employers offer stipends or minimum wage payments to interns, especially if the internship is formalized through a contract.

Expats

Expatriates working in China are subject to the same minimum wage laws as local employees. However, expatriates in managerial or specialized roles often earn higher wages, especially in multinational companies. For example, top-level executives and highly skilled expatriates may earn significantly more than the statutory minimum wage. They are also entitled to other benefits such as housing allowances, bonuses, and relocation assistance, which are not included in the minimum wage calculation.

Minimum Wage for Top Paying Roles in China

 
• Senior Executives: Senior-level executives, particularly in multinational corporations, typically earn wages well above the minimum wage, often in the range of CNY 30,000 to CNY 50,000 per month.
 
• Technology Managers: Managers in the technology sector, particularly in cities like Shenzhen, can earn between CNY 15,000 to CNY 30,000 per month.
 
• Skilled Labor (e.g., Engineers): Engineers and highly skilled professionals in industries like IT or manufacturing can earn between CNY 10,000 to CNY 20,000 monthly, depending on experience and location.

Factors Influencing Minimum Wage in China

Industry-Specific Variations

Minimum wages in China vary significantly across different sectors. For example, cities like Shenzhen, known for their booming tech industry, often have higher minimum wages due to the high demand for skilled workers. Conversely, workers in manufacturing or service industries, especially in smaller cities, tend to earn lower wages, with many workers earning near the statutory minimum.

Economic Conditions

The economic conditions of a region significantly impact minimum wage rates. In times of economic growth, wages generally increase to keep up with inflation and demand for labor. Conversely, during economic slowdowns, wage growth may slow, and some regions might freeze or adjust wages less frequently.

Government Policies and Legislation

Government policies and local government bodies play a significant role in determining the minimum wage. Policies around labor rights, cost of living adjustments, and employment standards are continually reviewed by the central and local governments, with periodic increases to maintain workers' purchasing power.

Tax Implications of Minimum Wage

For employees earning the minimum wage, the personal income tax is relatively low. In China, employees who earn less than CNY 5,000 per month are generally exempt from paying personal income tax. However, employers are still required to make contributions to social insurance, including pensions, healthcare, and unemployment insurance.

Minimum Wage History and Trends in China

China’s minimum wage policies have changed significantly from 2010 to 2025, driven by the country's economic growth, urbanization, and efforts to reduce income inequality. In 2010, the national minimum wage was about ¥865 per month, reflecting a 27% increase from the previous year. By 2015, the average minimum wage had risen to ¥944, a significant increase over five years.

However, between 2015 and 2016, the growth rate slowed to 14.5%, down from 17% in 2015. Recently, especially between 2023 and 2025, China has continued to adjust its minimum wage to keep up with inflation and the rising cost of living. For example, Shanghai’s minimum wage reached ¥2,690 per month, and Beijing’s hourly rate became the highest at ¥26.4.

These changes are part of China’s broader plan to increase domestic spending and reduce income gaps between urban and rural areas. The government aims to encourage fair wage growth to boost the purchasing power of low- and middle-income people, ultimately supporting the economy.

‍

How To Stay Compliant When Hiring in China With Playroll

Expanding your business internationally is exciting, but it comes with the challenge of understanding complex legal and payroll requirements. One of the hurdles is ensuring you comply with local minimum wage laws. Playroll makes this process easier by acting as your trusted Employer of Record:

 
• Scale Your Global Team: Legally hire and onboard employees in 180+ regions, ensuring full compliance with local labor laws, tax regulations, and statutory benefits.
 
• Pay Your Team Accurately: Your global workforce is always paid on time, and we ensure continuous compliance with local minimum wage and tax laws.
 
• Guaranteed Legal Compliance: Our comprehensive compliance checks and expertly crafted contracts guarantee your agreements meet local legal standards, including minimum wage laws, tax regulations, and benefits. This way, you can focus on growing your business without worrying about compliance risks.