Adjustments to average salaries in major cities in China

At a glance

• Average salary figures published annually in July and August are used to calculate statutory severance in major Chinese cities.
• These figures also set the ceiling for social insurance and housing fund contributions in Shanghai, Shenzhen, and Guangzhou, with Shenzhen and Guangzhou using the Guangdong provincial average for social pension insurance.
• In Beijing, the 2024 ceiling for housing fund and social insurance contributions is RMB35,283, while the severance pay cap is RMB47,103.

Many cities across China publish the average salary figures for the past year in July and August annually. The table below summarises the latest salary data that is used to calculate statutory severance in major cities in China.

The above salary caps for severance are also used as the ceiling for calculating social insurance and housing fund contributions in Shanghai, as well as the housing fund contribution in Shenzhen and Guangzhou. The social pension insurance contribution ceiling base in Shenzhen and Guangzhou uses 300% of the average monthly salary at the Guangdong provincial level instead (Cap of salary for pension insurance contribution is RMB26,421. Notably, the adjustment of social pension insurance contribution ceiling originally scheduled in July 2024 is yet to be announced). In Beijing, the ceiling amount of the housing fund and of social insurance contributions for 2024 is RMB35,283, different from the salary cap for severance (RMB47,103).