German companies in China expect wage increases of 5.99% in 2019
It is the first time the forecasted average wage increase has picked up since the survey is conducted on a China level: 5.99% in 2019, 5.90% in 2018.
The mild uptick, however, is not evenly distributed across regions. An acceleration of the average salary increase is expected in the Yangtze River Delta areas and Guangzhou. North China (Beijing, Tianjin, Other North), Shenzhen and Other Pearl River Delta areas are expected to put forward lower wage increases in 2019.
Rising labor costs, recruiting and retaining qualified staff remain the top three HR related issues.
Sentiment still remains positive in the ability for productivity to match wage increases (50.7% consider it likely), although more conservative than in the previous edition (58.2% likely).
Introduction to the report:
Every year since 2012 the German Chamber of Commerce in China conducts among its membership a China-wide salary survey aimed to monitor the evolution of compensation. This report represents its 11th Edition and has been elaborated in partnership with Direct HR Group.
The report covers a set of production-related positions (blue collar workers, operators, shift leaders,…) as well as several functional areas (administration, sales, purchasing, finance, HR, engineering / r&d, quality, logistics, and consulting / project management ) for three levels of seniority based on job-experience.
Further to compensation and expected wage increases the survey offers additional insights into other HR related issues (productivity, HR challenges German companies face in China, and more).
The China Labor Market & Salary Report is the intellectual property of the German Chamber of Commerce China.