1. Common Salary Adjustment Mechanisms

A. Performance-Based Adjustments

Salaries are frequently linked to individual or team performance metrics, with top performers often receiving significant raises—ranging from 10–15% for those with the highest ratings. In tech and manufacturing sectors, skill-based pay structures reward certifications or project contributions, with skill-related wages sometimes increasing from 30% to 40% of total compensation.

B. Annual/Regular Adjustments

Most companies conduct annual salary reviews, typically in March or September, aligning adjustments with profitability and market benchmarks. The average raise in 2025 stands at 5–6% across industries. Additionally, all employers must comply with regional minimum wage hikes; for example, Shanghai’s minimum wage reached ¥2,690 per month in 2025.

C. Role or Promotion-Based Changes

Promotions are commonly accompanied by salary increases, with managerial role transitions often bringing 10–20% raises. Lateral job transfers may also involve pay adjustments to reflect new responsibilities or regional cost-of-living differences.

D. Special Adjustments

Ad-hoc raises may be implemented to address inflation or policy changes, such as Xinjiang’s 2025 minimum wage increase to ¥2,070. To retain critical talent, companies sometimes offer off-cycle salary adjustments or stock options outside regular review cycles.

2. Frequency of Salary Increases

3. Key Influencing Factors

Government wage growth targets, such as Sichuan’s 6% baseline for salary increases, significantly shape corporate policies. Industry dynamics also play a role: tech and retail sectors offer more frequent adjustments (with a 4.9% average raise in 2025), while manufacturing sectors tend to have more stable, less frequent changes.