How is the average salary of a Chinese?

From the country's fast-growing urban centers to its frontier countryside, wages are rising rapidly across China.

China's 31 provinces boosted minimum wages by an average of 24% last year, according to Yin Weimin, China's minister of human resources and social security. Meanwhile, the average monthly income for migrant workers rose 13% to $256.89 (1,690 yuan).

Six provinces already have raised minimum wages this year, and labor shortages and government mandates will likely compel the remaining 25 to follow suit.

The central government is targeting an increase in minimum wages of 13% a year through 2015.

"There is an inseparable connection between the pace of economic development, employment and inflation," said Wen. "When the pace of economic development is fast, there is more employment, but inflationary pressures are also bigger."

Higher wages have fanned inflation, but they're draining the country's gorged manufacturing base.

Indeed, Chinese workers are no longer at the bottom of Asia's pay scale. In 2009, monthly factory wages:

1)      in Ho Chi Minh City, Vietnam were about $100,

2)      they were $148 in Jakarta, Indonesia,

3)      and $47 in Dhaka, Bangladesh.

Source: Pay to Play: What China's Rising Wages Mean for Investors, By Jason Simpkins, Managing Editor, Money Morning, March 22, 2011


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