China Salary Growth Guide: Understanding RMB Raises

Salary growth in China can be rapid, especially in Tier 1 cities like Shanghai, Beijing, and Shenzhen. This guide explains how to properly calculate and benchmark your RMB pay raise.

Calculating Your Percentage Increase

The universal formula applies regardless of currency:

((New RMB - Old RMB) / Old RMB) × 100

Example:

• Old: ¥15,000
• New: ¥18,000
• Increase: ¥3,000
• Calculation: 3000 ÷ 15000 = 0.20 (20%)

Use our China Salary Increase Calculator for quick math.

Gross vs. Net (Social Insurance)

In China, the difference between Gross Salary and Net Pay can be large due to "Five Insurances and One Fund" (Social Insurance + Housing Provident Fund).

• Negotiate on Gross: Always discuss your raise in terms of pre-tax monthly gross salary.
• Housing Fund: A higher gross salary increases your Housing Provident Fund accumulation, which is tax-free money for housing.

Typical Growth Rates

• Internal Raise: 5% - 10%
• Job Switch: 20% - 30% or more

Related Tools

• China Investment Return Calculator
• China Price Increase Calculator