China to Boost Minimum Wage 13% Per Year
By wchung | 15 Jul, 2026

China aims to reduce the ballooning income disparity between rich and poor by boosting the minimum wage by at least 13 percent a year over each of the next five years, said the Ministry of Human Resources and Social Security Wednesday.

By 2015 the minimum wages in most parts of the country will exceed 40 percent of the average income of urban residents, the ministry said.

During just the first quarter of this year 13 provinces raised their minimum wages an average of 20.6 percent to offset the impact of surging inflation that sent the consumer price index up at a 5.4% annual rate and food prices up by 14%. The inflation has sparked growing unrest over China’s widening income gap.

In Shenzhen the minimum monthly wage set by law is 1,320 yuan ($203), China’s highest level. The highest minimum hourly wage is 13 yuan ($2) in Beijing.

The ministry vowed to reduce income disparity among industries over the next five years.

China’s goal is to boost the real per capita net income of all residents over 7 percent a year over the next five years.