Average salary in China: What it means for your bottom line

What is the average salary in China?

The average salary in China is about CNY 124,110 a year (roughly USD 17,300) in urban non-private units, though pay varies widely by industry, city, and employer type.

Here is the quick view:

• IT, finance, and research pay the most across the country.
• Shanghai and Beijing top the list of high-paying cities.
• State-owned and foreign-funded firms tend to pay more than private ones.

Outsourcing is now a key way for firms to cut costs, boost efficiency, and reach skilled talent. For example, many companies offshore work to countries with competitive labor markets, such as India, the Philippines, and Eastern Europe. These regions offer skilled workers at lower cost.

Still, China is not the top pick for service outsourcing. However, it is gaining attention as a viable option. It has an evolving labor market, a growing talent pool, and a better business setting. So this article explains the average salary in China and what it means for your bottom line.

Top 3 industries for offshore services in China

China has long been known for manufacturing. However, its offshore services sector has grown into new areas.

Labor costs are rising in other regions. As a result, global firms now look to China for more than production.

The country supports a wide range of offshore operations. This shows its growing appeal as a multi-industry offshoring base:

1. Manufacturing

First, China remains a global manufacturing leader. Many firms offshore work like assembly, packaging, and parts making to Chinese factories. So they cut costs and scale output.

The country has a vast industrial base and supply chain. For example, it handles mass production of electronics, textiles, auto parts, and consumer goods. As a result, these partnerships focus on speed, high volume, and fast delivery.

2. Information Technology (IT)

China’s IT sector has grown fast. It now offers offshore services such as:

• Software development
• App design
• System integration
• Technical support

Chinese tech pros bring strong skills in AI, cloud computing, and data analytics. So firms farm out IT tasks to tap this talent and cut costs. For a wider view, see these IT outsourcing services and the case for offshore software development.

Major hubs like Shenzhen and Beijing keep drawing global firms. As a result, they attract complex technical projects.

3. Customer service

Also, customer support is another growing offshore service in China. Firms offshore call center work, live chat, and multilingual help desks to Chinese providers. To compare options, read about call center outsourcing.

These services cover both local and global markets. Often they support English, Mandarin, and other major languages. So the focus stays on cost-effective, high-quality customer care.

Each of these industries shows China’s growing role in global offshoring. In short, it offers a mix of value, talent, and technical skill.

Average salary in China annually per industry

First, knowing wage levels by industry helps you plan hiring and offshoring. Also, pay in China varies widely by sector and employer type.

The figures below build on 2023 data from Statista and the latest 2024 figures from China’s National Bureau of Statistics. They reflect earnings in urban, non-private units, which include state-owned firms, joint ventures, and foreign-funded companies.

These figures do not include private businesses or self-employed people.

Source: China National Bureau of Statistics (2024); Statista

IT, financial services, and research lead the list. Meanwhile, manufacturing, real estate, and construction sit lower. So these gaps reflect strong demand for skilled labor and the pull of urban, government-backed industries.

Average salary in China: Cities with the highest annual salaries

Overall, salary levels in China vary widely by region. Meanwhile, major cities and richer provinces pay more.

Per Statista, average pay in non-private urban firms is highest in key finance and trade hubs. In 2023, the national average sat near 120,700 CNY. It then rose to about 124,110 CNY in 2024. Still, some cities go well above this figure.

Here are the top cities and regions by average annual salary:

Source: Statista

Shanghai and Beijing lead the rankings. They hold dense clusters of finance, tech, and global firms. Regions like Tibet and Qinghai follow, which reflects state investment and smaller workforces.

Location is not the only driver. Dominant industries matter too. In fact, IT, finance, and tech pay the most across all regions. For a regional comparison, see the average salary in India and why firms outsource to India.

Average salary in China: Labor laws and wage standards

Also, China’s labor laws protect worker rights, set wage rules, and support fair workplaces.

Over the years, the government built a detailed legal framework. It aims to support income stability and staff well-being.

The 1995 Labor Law and the 2008 Labor Contract Law (amended in 2013) form the base of employment rules across the country:

• Employers must sign a written contract with each employee. It sets out duties, pay, work location, and other terms (Labor Contract Law, Article 10).
• Contracts must state working hours, pay, leave, and safety measures (Labor Contract Law, Article 17).
• The standard workweek is 40 hours, with two rest days. Flexible hours may apply in some roles under the State Council 1995 Provisions.
• Staff who work extra hours must get overtime pay. Daily overtime is capped at three hours, and monthly overtime cannot top 36 hours (Labor Law, Article 41).
• Overtime pay is set at 150% of normal wages on workdays, 200% on rest days, and 300% on national holidays like Chinese New Year (Labor Law, Article 44).
• Employers must pay wages each month. They cannot delay pay without a legal reason (Labor Law, Article 50).
• Workers get paid leave during official holidays, weddings, and funerals (Labor Law, Article 51).
• Dismissed staff must receive severance based on length of service and final monthly pay (Labor Contract Law, Article 47).

In short, these laws support fair wages and job security across China’s growing economy.

Average salary in China: Important FAQs

Here are answers to some common questions about the average salary in China.

What is the average salary in China?

The national average annual salary in urban non-private sectors reached about 124,110 CNY in 2024. So it sits a little above the 2023 level.

Which industries offer the highest salaries?

IT, financial services, and scientific research lead the rankings. For example, IT staff in urban non-private units earned about 238,966 CNY a year.

Which cities have the highest salaries in China?

Shanghai and Beijing offer the highest average annual pay. Their figures reach 229,337 CNY and 218,312 CNY.

Are salaries higher in private or non-private sectors?

Non-private firms usually pay more. For example, state-owned and foreign-funded firms tend to offer higher, steadier wages than private ones.

Is China a good option for offshoring?

It can be, depending on your needs. China offers strong tech talent and a deep supply chain. Still, many firms also weigh India and the Philippines for service work.