CHINA

China Pushes Minimum Wage Hikes to Spur Sluggish Consumption

Published: Aug. 28, 2025 1:12 p.m. GMT+8

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A wave of minimum-wage increases is sweeping across China, with major economic hubs like Beijing and regions such as Hunan province announcing fresh hikes as part of a national push to lift incomes for the country’s lowest-paid workers.

The moves, which will affect millions, signal a renewed effort by authorities to address wage stagnation and stimulate consumer spending. Nearly half of China’s provinces have now announced or prepared for increases this year.

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Major Chinese regions, including Beijing, Hunan, and Shanghai, are increasing minimum wages to address wage stagnation; nearly half of provinces plan hikes in 2024-2025.
Beijing's monthly minimum will rise to 2,540 yuan, Shanghai's to 2,740 yuan—the highest nationally; other regions see similar, though varied, increases.
Minimum wage comparison is complicated by differences in gross/net calculations and high social-security contribution bases, which remain burdensome for low-income workers.

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Who’s Who

Caixin: Caixin is an organization that conducts analysis, as indicated by a "Caixin analysis" mentioned in the article. They report on economic topics, specifically providing insights into the minimum wage and social security systems in various Chinese provinces. The article also lists contact information for one of their editors.

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What Happened When

2021：: Xinjiang's last minimum wage increase occurred.

2022：: Chongqing and Sichuan raised their top-tier minimum wages by 300 yuan.

2023：: Beijing increased its minimum wage by 100 yuan.

2023：: Anhui province reported its top-tier minimum wage at 2,060 yuan, clarifying that the figure included personal deductions.

January 2025：: Chongqing and Sichuan raised their top-tier minimum wages by 230 yuan.

March 2025：: The Special Action Plan to Boost Consumption, calling for mechanism to raise minimum wage, was released by the central government.

2025：: Provinces of Guangxi and Qinghai implemented minimum wage increases that pushed their top-tier minimum wages above 2,000 yuan for the first time.