Hey There Big Spender! Beijing Number One in Average Monthly Salary
The Beijing government released fall employment data this week, revealing that Beijingers, on average, earn the most of any workers in China. At RMB 11,623 per month, Beijing ranks first out of 38 cities included in the study. Changchun, unlucky number 38, records an average monthly income almost half that, at RMB 6,608 per month. While these numbers are interesting in and of themselves, the ranking doesn’t communicate the full complexities of salaries in Beijing and income dynamics China-wide.
Here’s what you need to know to go beyond the numbers:
High salary, high costs
While Beijing is home to high-earners, it also has a relatively high cost of living – especially for basic necessities. Even with decreasing rental prices prompted by COVID-19, average rent in Beijing for a one-bedroom apartment reached RMB 5,391.54 per month in late 2020, and increases to RMB 6,426.52 per month and RMB 9,882.61 per month for a three- and four-bedroom apartment, respectively. In terms of the overall cost of living, Beijing is ranked tenth as one of the most expensive city’s worldwide in 2020, up from eighth place in 2019.
Beijingers are making WAY more than minimum wage
In comparison to China’s minimum wage, Beijingers are making it rain-minbi. Beijing’s monthly minimum wage is currently RMB 2,200 per month. The highest minimum wages are in areas of Guangdong, Jiangsu, and Zhejiang provinces, which are all over RMB 2,000 per month, as well as Beijing, Shanghai, Shenzhen, and Tianjin. Shanghai has the highest minimum wage in China, at RMB 2,480 per month, while at the lowest end, provinces may mandate half that – like rural areas of Liaoning, which require only RMB 1,120 per month.
Income inequality is still high in China
Despite the rosy picture for Beijing residents, income inequality in China remains high. As of May 2020, Premier Li Keqiang confirmed that more than 600 million Chinese live on a monthly income of RMB 1,000, despite per capita income of about RMB 470,000 annually. This means that while Beijing residents may be living large, substantial portions of the Chinese population are living month to month.
COVID-19 is expected to further this divide
China has promoted reducing income inequality as a policy goal for years, but COVID era policies are expected to undermine progress, at least in part. A February study found that around a third of Chinese households earning annual incomes of between RMB 10,000 and 30,000 would experience significant income decreases in 2020, compared to only 11 percent for households making over RMB 200,000 per year. A separate study in June validated these findings, concluding that out of 5,000 households surveyed in June, those earning less than RMB 50,000 suffered the biggest income decreases in 2020.
READ: Minimum Wage Rates Across the Country
Images: Mitchell Luo (via Unsplash)
