The city of Beijing recently announced a new minimum wage rate, but the figure is not enough to cover basic living costs.
Authorities also said in its announcement that the rate was not mandatory, but only a guideline.
The bureau added that “the minimum wage is only a theoretical minimum. In actual application, companies don’t need to follow this limit—except for in extreme cases.”
Each Chinese city has its own tax and fee standards. In Beijing, a resident doesn’t need to pay income tax if his monthly income is lower than 5,000 yuan ($758.5).
According to different online Chinese income calculation tools, a Beijing employee on a 2,200-yuan monthly salary can receive about 1,650 yuan ($250) per month after deductions.
In major Chinese cities, the cost of living is relatively high.
A monthly salary of 1,650 yuan can pay for renting an apartment about 200 square feet. Many Beijing residents opt for renting a small room instead. In recent years, media reports have highlighted scenarios where more than ten people live in the same three-bedroom apartment—a potential fire hazard.
The minimum wage is also insufficient for the city’s high food prices.
At the Beijing wholesale market Xinfadi, the cheapest pork product was 16.5 yuan per 500 grams (about $2.27 per pound), according to its website. Pork is the most popular choice for protein in China.
Meanwhile, a Big Mac at McDonald’s cost 23 yuan (about $3.49).