Average salary in China: how people live in China

Minimum wage in China

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

Depending on the region, the official minimum wage in China in 2021 ranges from 1,000 to 2,420 yuan per month, equivalent to 155 to 375 US dollars. By law, regional and city authorities must review minimum wage rates at least once every two years. From April 1, 2021, the highest minimum wage is received in Shanghai (2,420 yuan), and the lowest in the Guangxi region (from 1,000 to 1,400 yuan).

According to official data from the National Bureau of Statistics and the Ministry of Regional Development of China, in 2014, 19 regions increased the minimum wage, in 2015 27, in 2021 9, in 2021 11, and in 2021 10 provinces of China plan to increase the level of minimum wage for their workers by an average of 7%.

General information

It's no secret that China has always been a very closed state. Despite the fact that modern China has become an active participant in international politics and the attitude towards foreigners is no longer as prejudiced as it was several decades ago, practical and demanding residents of the Middle Kingdom prefer to surround themselves only with ethnic Chinese. This trend also applies to employment. Both at the level of mentality and due to the peculiarities of the legislation, it is customary, first of all, to hire citizens of the country for work in Chinese firms and companies. Foreigners will be employed only if the selected vacancy is not applied for by Chinese nationals or ethnic Chinese - immigrants from the Middle Kingdom, who for some reason have citizenship of another country. Of course, Chinese organizations need highly qualified specialists, but one should not assume that there are few of them among the country’s citizens.

Comparison of average salary in China with other countries (2017)

Despite such a noticeable leap in economic development, in 2016 China did not even enter the top hundred countries in terms of minimum wage. In addition, about 40% of the population is forced to work in positions with very low salaries.

The average salary in China at the beginning of 2021 was $750 per month . This indicator was calculated taking into account all professions and all regions of the country. To be fair, it is worth clarifying that this figure excludes income taxes and contributions to the pension fund, which are paid by both employers and employees in China.

Just six months ago, Chinese salaries were the same compared to the Russian average (excluding Moscow). Now they earn almost 50% more. So you’re thinking, either go there to work for your uncle, or open a production facility here and compete with Chinese goods.

Gatget

https://forum-taobao.com/showthread.php?t=4906

Graph comparing Chinese minimum wages with other countries
Salaries in China can vary significantly depending on many factors. The first and perhaps obvious one is the settlement. Thus, the highest wages are observed in the economic and cultural centers of the state - in Beijing and Shanghai. Here the average monthly wage exceeds $1,000. The population earns slightly less in Zhejiang, Tianjin, Shandong, Jiangzu - these cities are distinguished by their developed industry. The lowest wages are received by workers in small towns and villages, such as Gansu or Jiangxi. As a rule, on average, residents of villages and agricultural provinces earn $150–200 a month, and a salary exceeding $400 is considered more than high in these regions. It must be said that this money is usually enough for residents to cover everything they need: food, clothing, transport and housing, since prices for all types of goods and services in such regions of the country are much lower than in big cities.

The national currency of China is the yuan. At the end of 2021, its exchange rate is 8.8 rubles or 0.15 US dollars.

The size of the enterprise also affects the level of wages. For example, a company with five hundred employees will be able to offer higher wages to its employees than a company with half as many employees. In this case, the difference can be from 5 to 20% - it all depends on the specialization, city and other features.

Wage growth in China has been accelerating significantly recently

People with higher education earn more than those who graduated from a technical school or who have no education at all. While in the Russian Federation one can often argue with this, in the Celestial Empire this truth works. The fact is that since the time of Confucius, an educated person has been revered in society more than others, while education in China has long been a prerequisite for officials, especially in high positions.

My brother and I went. I worked at a nightclub in Beijing, where I could earn $50–70 in tips per night, on top of my $1,300 salary. At the same time, there are much fewer drunken and violent people there than here.

Victor

https://vesti-ukr.com/strana/223749-ukraintsy-uezzhajut-na-rabotu-v-kitaj?utm_placement=112

Video: salaries and work in China

Tax deductions from salaries in China

Not only the income of Chinese citizens, but also of visiting workers is subject to taxation. The main types of taxes include:

• business tax (3-10% depending on the focus of the enterprise, it is only levied on firms or companies with foreign investment);
• income tax (paid by employees and amounts to 10-15% of wages);
• tax on additional earnings (this tax applies only to foreigners who have lived more than 5 years in China and have additional income abroad).

In addition to this, there are other types of taxes. For example, VAT is included in the price of goods and is paid directly upon purchase of any product. A consumption tax is charged if the purchased product requires a license. In addition, there is a tax on children in China - due to the fact that the country is overpopulated, the Chinese authorities have introduced a special tax, which is paid by families with two or more children.

Visa to China for Russians

To travel to China for any purpose, a citizen of the Russian Federation needs to obtain a visa. Exceptions are the cities of Hong Kong and Macau, where you can enter for two weeks or a month without a visa.

A citizen of the Russian Federation can obtain a visa upon arrival if he crosses the border as part of a group that has been previously agreed upon with the authorities. In other cases, Russians must obtain in advance a permit stamp of one of the following types:

• tourist;
• working;
• student;
• transit;
• journalistic;
• national.

You need to submit a photo, a letter from the inviting party and a basic package of documents to the Chinese Embassy. The cost of a visa depends on its type and the period for which it is issued. Friendly relations have long been established between China and Russia, so citizens of our country are extremely rarely denied visa permits. Highly qualified specialists and representatives of professions in demand in the republic are especially welcome in China.

Average salary in China

Over the past years, wages in China have been growing faster than in the vast majority of countries in the Asia-Pacific region (APR) and the world as a whole. For example, according to research by the international consulting company ECA International, at the end of 2021 alone, the actual increase in average wages in the Chinese state, that is, taking into account inflation, amounted to 4.7%, while for all countries of the Asia-Pacific region it was about 2.6%, and in the world around 1.5%. Nominal growth in average wages in China is estimated at 7%.

According to official data from the Chinese National Bureau of Statistics and the Ministry of Transport and Communications, the average salary in China in 2021 (in cities) is 82,461 yuan per year ($11,910) or 6,872 yuan per month ($995). At the same time, the average monthly income of skilled workers in the 37 largest cities is estimated at 7,629 yuan ($1,175). The city with the highest salaries is Beijing, where experienced professionals earn an average of 10,157 yuan ($1,565). In Shanghai they earn 9,621 yuan ($1,480), in Shenzhen 9,134 yuan ($1,405) and in Guangzhou 7,965 yuan ($1,225).

For example, the average salary in Bulgaria is $695 per month, which means the Chinese already have a higher income level. In addition, according to a large recruiting company from China, ZW HR Consulting, foreign specialists with work experience, in-demand skills, and who speak English and Chinese can count on a salary that is at least 15–25% higher than the national average.

Average salary level in rural areas

It is logical that in rural areas the average salary in China will be lower than in the capital and large cities. Ukrainians and Russian citizens sometimes go to China to work on agricultural farms. But when considering this option, you need to understand that on average you will be paid no more than $100 per month in Chinese currency.

The average salary for rural residents can be $400. But their actual work schedule is amazing. To get this money in hand, they work 10 hours a day, seven days a week.

Employment of foreign citizens

Most of the jobs offered to foreigners are related to either the entertainment industry or computer engineering and programming.

As China aims to further automate production processes, those who specialize in these areas can apply for jobs. But you will need an international diploma, as well as perfect knowledge of English and Chinese.

Obtaining a work visa

A work visa to China is issued by the employer. You can also find vacancies on the Internet - now you don’t have to fly to the country to do this. Chinese employers successfully practice interviews and other stages of hiring via the Internet.

To obtain a work visa, you will need an invitation from the employer, as well as a passport, foreign passport, application, and health insurance.

Work permit

A work permit is also issued by the employer after several months of successful training of the employee. But it is worth noting that before official employment, that is, during the internship, the employer can pay the minimum wage.

Features of medical care in China

A Russian citizen can easily work as a doctor in China; there are no obstacles to this. Moreover, Chinese patients themselves have great confidence in foreign doctors and clinics, especially private ones, strive to get such specialists.

But before making decisions about concluding a contract, you need to know some of the features of modern medicine in China. And the first thing that needs to be taken into account is that healthcare in its modern form began to develop in the country in the 1960-1970s; before that, traditional folk medicine methods mainly dominated.

Medical care in China is paid, but the principle is that if you earn enough, then pay for it yourself, and in other cases the state will help.

You can watch the video below about how dentists work in China.

This system has its disadvantages:

• normal hospitals, and therefore professional medical care, are available only in cities;
• there are always long queues in hospitals;
• during hospitalization there is no free food, this is all at the discretion of the patient, although there are paid cafes in the hospitals themselves;
• old methods of treatment are present, especially in surgery;
• assistance, even if there is a threat to life, will be provided only after payment;
• there is no ambulance;
• There are no pharmacies in cities, only inside hospitals, and doctors prescribe medications to the maximum to ensure profit for local hospitals.

However, there are also positive aspects in serving patients in Chinese hospitals:

• clinics and hospitals in large cities are provided with excellent technology;
• all tests and examinations are done literally in a matter of days, there is no need to wait in line for an ultrasound or MRI, however, it will cost money, as in Russia, where all processes are accelerated when there is payment.

In principle, these are all the positive aspects of Chinese medicine. There are many Chinese people, thanks to their good standard of living, they live a long time, and the country has introduced strict measures on childbearing. Therefore, healthcare is not such a priority in the country.

Nevertheless, ordinary Chinese, despite all the difficulties and paid medicine, are ready to pay money and turn to foreign specialists who are more trusted.

Taxation procedure

The Chinese tax system is quite complex. But a number of categories of citizens enjoy social benefits, which helps them save money.

The main tax that all individuals pay to the state is income tax. The tax rate depends on the salary. For the minimum salary it will be 5%, and for the maximum - 45%. However, those who earn less than 4,000 yuan are exempt from paying it.

Chinese citizens are also required to pay other types of social contributions and taxes to government authorities. These include:

• on income - from 5% to 45%;
• for added value - up to 17%;
• for ownership of real estate - 1.2%;
• for the purchase and use of personal transport - 10%;
• for education - 3%;
• at the start of construction - 7%;
• for the transfer of ownership rights - up to 5%.

In addition, mandatory for a Chinese citizen, as well as a foreigner who works here, are payments to the Pension Insurance Fund (on average 8%), Medical Social Contributions (2%), to the Unemployment Insurance Fund (0.2%), and Savings fund (12%).

Of course, large social contributions and taxes “do not please” the Chinese. Therefore, there is outrage in the country about this, which forces the government to regularly review certain norms and rules of legislation.

Salaries by city

Regional indicators strongly depend on the status of the locality. In general, the incomes of residents of the capital can be 3–4 times higher than the salaries of those living in the provinces. Moreover, in cities, salaries are 2–3 times higher than in rural areas.

In Pekin

The official minimum salary for a resident of the capital is 3 thousand yuan. Guest workers are paid a third less. The average salary in Beijing is 15,000 yuan (about $2 thousand). There is a lot of competition for such vacancies, so a migrant is not always able to start a career with a decent salary locally. The city is one of the business centers of the republic. Specialists in the field of finance and trade flock here.

In Shanghai

In this large metropolis, the minimum rate exceeds the capital's income by 15–0%. On average, city residents can count on 16–17 thousand yuan. Shanghai is the cultural capital of the People's Republic of China. Actors with European appearance are in demand here.

To Guangzhou

In another large region, salaries are set at 2000 yuan (minimum) and 10–15 thousand (average). Guangzhou remains the scientific center of China. Researchers and financial sector workers earn the most here.

Pension provision

The retirement age for Chinese men is 60 years old and for women it is 55 years old. Those who worked in companies in the industrial sector, as well as in government agencies, can count on payments. The size of the pension benefit depends on the length of service and working conditions.

Those citizens who do not belong to these categories are forced to get out on their own upon reaching retirement age, since the state does not guarantee them any payments. Eastern traditions of caring for the elderly generation are bearing fruit - citizens are cared for by their adult children and grandchildren.

The monthly deduction from wages to the Pension Fund of the Russian Federation is 12%. In this case, 4% is allocated from the employee’s income, and the remaining 8% is paid by the employer himself.

The country's pension system is in crisis, according to official sources and local media. This is primarily due to the large number of people, which is why a political doctrine has even been introduced according to which a family should have only one child.

Tax system

The country has an extensive scale of fees. But taxes in China are not as high as in Europe. This provides an additional incentive for the influx of investment and labor migrants.

Income tax

The Chinese government has established a progressive tax scale. The minimum personal income tax rate is 5%. Only those individuals whose monthly earnings exceed 4,000 yuan are subject to the tax. The maximum rate is 45%. Such fees apply to a small segment of wealthy Chinese.

Social contributions

This category includes several additional payments:

• 8% of income is allocated to the insurance pension;
• Another 2% goes towards health insurance;
• 2% of income is paid towards unemployment insurance;
• a fee of up to 12% is transferred to the Savings Fund (provides compensation for loss of housing).

In total, each Chinese citizen pays on average about a quarter of his income to the treasury. This indicator is considered softer compared to that in European countries and the United States, where direct and indirect taxes spend from a third to half of citizens’ income.

Features of finding a job in China

Before you start looking for a job on the Internet, you need to study all possible vacancies and the conditions for obtaining them. In such a situation, reviews from those who have already been able to find work in China can significantly help.

The search for jobs should start with agencies, the official website of the embassy, ​​which can offer work for foreigners. In addition, relatives or friends who live in China or have experience working in this country can help.

Many people who want to work in the Middle Kingdom are more interested in culture, cuisine and the growth of the country’s economy. Not everyone strives to find employment with a high salary. Especially young people who are not very concerned about earning money fall into this category. She is interested in the experience and experience gained.

If we talk about vacancies for Ukrainians, Russians, Belarusians and other representatives of the CIS countries, many of them relate to the field of education, industrial, chemical, space and IT technologies. The professions of translators, dancers, models, diverse artists, programmers, and teachers are considered quite popular.

There is plenty of work for girls in China. Vacancies can be not only in the entertainment and service sectors, but also in the cultural, educational and engineering sectors.

Finding a job is highly dependent on professional skills, education, personal qualities and knowledge of the Chinese language. Without these criteria, it is difficult for girls to find a decent job.

Average salary of various professions by industry

In China, the maximum salary depends on the specific industry. Employees receive the highest:

• financial institutions;
• education;
• IT communications;
• healthcare;
• Sciences;
• sports.

A Chinese engineer earns approximately $650. Melter at the plant $740 – $900. The minimum wage is paid to blue-collar workers, in manufacturing, hotels and restaurants. For example, in Jiangsu the salary of an ordinary worker does not exceed $240. Since there are very few available vacancies, highly qualified specialists quite often occupy low-paid positions.

The qualifications of a worker and his professional activity in a particular industry are the main determining factors in a person’s future earnings. Moreover, it does not matter at all whether he is Chinese or a person of another nationality.

Bank employees and financial workers receive the highest salaries. IT specialists are in second place. The salary of directors of companies engaged in the provision of economic services reaches 14,000–19,000 yuan. If we convert these amounts into rubles, we get 135,275–183,584 rubles.

How much do representatives of various professions get paid in China?

Experts note an increase in monthly payments in all areas of work. Thus, the national average minimum wage is $325. However, citizens complain about the proportional increase in the cost of essential products and the decrease in purchasing power.

The ranking of the highest paid professions in China (starting from the lowest value) is as follows:

1. Specialists involved in the pharmaceutical industry are highly valued by employers. For drug manufacturers, the average salary ranges from 9 to 10 thousand dollars per year.
2. Internet trading in China is booming, and although only 21% of workers have a university degree in economics, the annual income is $12,000.
3. China is a country with a developed industrial complex. The state is sensitive to protecting the environment from the negative impact of human activity. According to statistics, the average salary of employees of environmental structures was 14 thousand dollars.
4. Imports and exports play a leading role in the formation of GDP, so qualified customs officers had an average income of $1,300 per month. Due to the accelerating pace of turnover, such specialists are extremely in demand.
5. A chartered accountant in China makes about 17 thousand per year. Specialists with experience in doing business with foreign investors, analysts of international economic trends and financial auditors are especially in demand.
6. Salaries for website editors range from 17 to 20 thousand.
7. Insurers in China received an average of $2,000 a month this year.
8. Telecommunications have taken the path of active development. The income of engineers specializing in network integration and adapting them to international quality standards has increased significantly. The average salary in this sector was $2,500 per billing month.
9. 3G workers are in demand all over the world, and China is no exception. The monthly income of a highly specialized employee starts at $3,000.
10. The undoubted leaders among the highest paid professions are translators. Close cooperation with foreign business partners involves overcoming the language barrier. The average salary for synchronized swimmers is $3,400.

If we consider income statistics in large cities for various industries, the maximum possible salary is distributed as follows (in US dollars for one billing month):

• finance and accounting - 2700;
• sphere of integrated technologies – 3500;
• electric power industry – 2920;
• science and education – 3430;
• healthcare – 2460;
• culture and entertainment – ​​1300;
• wholesale and retail trade – 1530;
• mining - 4080;
• social sector – 1620;
• transport services – 1306;
• real estate – 1089;
• construction - 1780;
• production – 2450;
• agriculture – 980;
• services – 1420;
• public catering – 2320.

But these are statistical data for Beijing, and to obtain real information on the country it is necessary to divide the above figures at least in half. In China, the minimum income has barely reached 21% of the global average, which puts the country in 159th place in terms of wages. There is a large gap between the salaries of different social classes.

Requirements for applicants for engineer jobs

The most important thing is knowledge of the English language at an above-average level. Sometimes the ability to speak Chinese is a requirement. Some employers want an engineer with particular excellence in mathematics or computer science.

A prerequisite is having a higher technical education. There are different requirements for work experience, but there must be at least a year. You must be able to work with Auto Cad, Compass 3D, Solid Works and similar programs.

Watch the video: Working as an engineer in China.

Salary in Guangzhou

The highest earnings in Guangzhou are among workers in the fields of education, science and finance. The city is home to a huge number of banks and various financial-related businesses. Teachers and teachers of foreign languages ​​are always in demand in Guangzhou, as a huge number of educational institutions are concentrated here and many special courses are offered. The average salary of an English language tutor is $30 per hour, and that of a transportation process engineer is from $1,000 per month.

Jobs for foreigners: vacancies, salaries

Many foreign citizens come to China. The following vacancies are open to foreigners:

• teacher of Russian and English languages;
• model;
• actor;
• songwriter;
• dancer;
• manager;
• logistician;
• home assistant;
• engineer.

China is always looking for specialists in the IT, light, metallurgical and chemical industries, pilots, translators, programmers, doctors, and school teachers. Here, the experience of a foreigner is highly valued and they are guided by his experience at his previous place of work. But the average salary of a foreigner in China depends largely on language skills. If he does not speak Chinese, then it is unlikely that he will get a good job and feel comfortable in a new place. If a Chinese citizen earns an average of $750, then the average wage of a migrant will be $600.