China Annual Salary Data 2020
The National Bureau of Statistics of China released the latest data about the average annual gross salary of employees working in urban areas in 2020.
According to the figures, the average annual wage of employees working in urban non-private units in 2020 rose by a nominal 7.6%, reaching CNY 97,379 (equal to 14,113 USD). The Eastern provinces (including Shanghai, Jiangsu, Zhejiang, Shandong) registered an average annual wage of CNY 112,372 (USD 16,286) and a growth rate of 8.0%. The increase in Northeastern provinces is higher than the national data (8.2%), but the recorded average annual wage in the area is still CNY 77,631 (USD 11,251).
In terms of industries, the highest average gross annual salary is registered in Information Transmission, Software and Information Technology Services, with an average annual salary of CNY 177,544 (USD 25,731, increased by 10% compared to the previous year), followed by Scientific Research and Technical Services (CNY 139,851 / USD 20,268) and Finance (CNY 133,390 / USD 19,332).
The highest annual salary increase has been registered in Farming, Forestry, Animal Husbandry, and Fishery, with a +23.4% compared to the previous year. However, the industry has the lowest average annual salary, with CNY 48,540 (equal to USD 7,035).
According to the figures by registration status, employees working in foreign-invested companies, including sino – foreign joint – ventures, receive the highest average annual salary of CNY 112,089 (USD 16,245), with a yearly increase 5.1%. Those working in joint-stock enterprises earned an average of CNY 108,583 (USD 15,737), followed by the employees of state-owned enterprises (CNY 108,132 / USD 15,671).
Since the contribution base for the payment of the social insurance and the cumulative housing fund contributions is determined according to the employee’s average salary in the previous year, the rise in the average gross salary in 2020 will result in an increased contribution base; companies shall be prepared to face an additional burden during 2021.