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KITA Report:‘Minimum Wage in China Reached 59.2% of That in South Korea’
Minimum Wage Comparison
KITA Report:‘Minimum Wage in China Reached 59.2% of That in South Korea’
  • By Jung Suk-yee
  • May 2, 2016, 03:15
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The average minimum hourly wage of workers in five major cities including Beijing and  Shanghai has reached actually around 70% of their counterpart in South Korea.
The average minimum hourly wage of workers in five major cities including Beijing and Shanghai has reached actually around 70% of their counterpart in South Korea.

 

According to the Korea International Trade Association’s recent report, the average minimum hourly wage of workers in Beijing, Shanghai, Tianjin, Guangdong and Shenzhen has reached 59.2% of that of their counterparts in South Korea.

The percentage had been 40.3% in as recently as six years ago, which implies that South Korean firms in China are under increasing pressure for productivity improvement. Some experts point out that the percentage is actually about 70% as the Chinese workers are enjoying more welfare benefits.

The Chinese government recently released data on six regions’ minimum monthly wages. The list was topped by Shanghai, which recorded an amount of 2,190 yuan. In the meantime, the Guangdong Province recently announced that it would freeze the minimum wage at 1,895 yuan from last year to next year, which is quite unprecedented among major regional economies of China. 

Nowadays, manufacturing robots are becoming easier and easier to see in production sites in China. Three years ago, China became the country with the largest robot sales volume in the world. The industrial robot sales volume in China for last year is estimated at approximately 75,000 units, up 36.6% from a year ago, and the amount is predicted to reach 150,000 and 260,000 in 2020 and 2025, respectively.