Average yearly wages for employees in the public sector in Beijing, Shanghai and Tianjin surpassed RMB100,000 in 2018, according to recent data from China’s National Bureau of Statistics.
The three municipalities outranked all provinces in China for the highest public sector wages, with Beijing exceeding 10% year-over-year growth in salary and Shanghai and Tianjin salaries growing by 8.1% and 6.6% respectively. Following the top three were Zhejiang and Guangdong, both of which averaged a public sector salary of nearly RMB89,000.
As for average yearly wages in China’s private sector, the difference is staggering.
Beijing, Guangdong and Shanghai top the list for highest annual average salary in the private sector. Beijing’s average income in this sector was RMB76,908, which was 47% less than the capital city’s public sector wages. As for Shanghai, the difference was even greater with private sector workers bringing home RMB57,056 annually on average, nearly 60% less than their public sector counterparts.
Buoyed by two major metropolises in Guangzhou and Shenzhen, both with a large pool of private enterprises, the southern province of Guangdong dished out an average yearly salary of RMB58,258 for private sector workers last year, which amounted to RMB4,854 in monthly wages.
According to Economic View, the difference in salary between the two sectors can be attributed to economic fluctuations that more easily affect small private enterprises while the public sector provides better social security added to workers’ paychecks before taxes.
[Cover image via Pixabay]