Average Salary is typically calculated by the National Bureau of Statistics or local statistical bureaus based on a certain statistical caliber. Average salary generally refers to the total salaries of employees over a certain period divided by the number of employees.
According to the requirements of laws and regulations such as the Statistics Law of the People’s Republic of China, the National Bureau of Statistics publishes the average salary of non-private unit employees and private unit employees in urban areas annually (previous year). Provincial and municipal governments also publish local average salary levels, and these data are usually made public on official government websites.
According to relevant laws, average salaey data can be used to:
1. adjust the minimum wage standards, serving as a reference basis for the upper and lower limits of social insurance contribution bases.
2. being used for the calculation of social security benefits, such as the calculation of basic pension and the distribution of unemployment benefits.
3. serve as an important indicator for measuring the income level of residents, providing a basis for the government to formulate relevant policies.
Recently, related authority released the average local salary for 2023 ( please be noted that, the updated data in always from the previous year) in the website: (Unit: Yuan)
Related provisions in Social Insurance Law of the People’s Republic of China(中华人民共和国社会保险法)
Article 15:
…The basic pension is determined
based on the individual’s cumulative contribution years, contribution salary, average salary of local employees, personal account amount, average life expectancy of the urban population and other factors.
( For more information, please check our previous post: More on Social Insurance)
Article 56:
…Maternity allowance shall be calculated and paid according to the average monthly salary of the employee in the previous year of the employer to which the employee belongs.
(For more information, please check our previous post: Female employee rights in China)
