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Up 823 yuan / month! Do you understand the average salary correctly?

author:Happiness Fukuda
Up 823 yuan / month! Do you understand the average salary correctly?

Days

Shenzhen Municipal Bureau of Statistics released

"2023 Shenzhen Urban Units

Communiqué on the annual average wage of employed persons》

Announced the 2023 urban non-private units in Shenzhen

The average annual salary of on-the-job workers is 174,640 yuan

It is equivalent to 14,553 yuan / month

Up 823 yuan / month! Do you understand the average salary correctly?

Compared with 13,730 yuan/month in 2022

It has risen by 823 yuan/month

Up 823 yuan / month! Do you understand the average salary correctly?

Source: Shenzhen Municipal Bureau of Statistics

Employed persons in urban units in Shenzhen in 2023

Bulletin of the annual average wage data

According to the feedback approved by the Guangdong Provincial Bureau of Statistics, the average annual wage of employees in urban non-private units in our city in 2023 will be 171854 yuan, a nominal increase of 5.6% year-on-year, and a real increase of 4.8% after deducting price factors. Among them, the average annual wage of on-the-job workers in urban non-private units was 174,640 yuan, a nominal increase of 6.0 percent year-on-year, and a real increase of 5.2 percent after deducting price factors.

In 2023, the average annual wage of employees in urban private units in our city will be 94,215 yuan, a nominal increase of 4.3% year-on-year, and a real increase of 3.5% after deducting price factors.

Shenzhen Municipal Bureau of Statistics

June 30, 2024

01

Average wage

How is it calculated?

The average salary refers to the salary before taxes

It doesn't just include the actual salary received each month

It also includes unit withholding

Housing provident fund and social security fund and other individual contributions

as well as room charges, utility bills, etc

Average wage: refers to the per capita level of wages paid by the unit during the reporting period (quarterly or annual).

The calculation formula is: average salary = total salary in the reporting period / average number of employees in the reporting period.

Total salary: refers to the total amount of labor remuneration directly paid by the employer to the employees of the unit during the reporting period (quarterly or annual). This includes hourly wages, piece-rate wages, bonuses, allowances and subsidies, overtime pay, and wages paid under special circumstances.

The total salary is the pre-tax salary, including the individual income tax, social insurance fund and housing provident fund and other personal contributions directly withheld or paid by the unit from the individual's salary, as well as housing fees, water and electricity charges, etc. Whether costed or not, paid in money or in kind, should be included in the calculation of gross wages.

Other than that

Self-employed, freelancers, etc

Non-unit employees are not included in the statistics

↓↓↓

Statistical scope

Labor wage statistics mainly count the employment and wages of legal entities, and are not within the scope of statistics for self-employed persons, freelancers and other non-unit employees.

Private legal entities in urban areas (including industrial activity units that are statistically recognized as legal entities) specifically include: private limited liability companies, private joint-stock limited companies, sole proprietorship enterprises and partnership enterprises in domestic enterprises.

Non-private legal entities in urban areas (including industrial activity units that are statistically recognized as legal entities) specifically include: domestic-funded (including government agencies and institutions) other than private units, Hong Kong, Macao and Taiwan investment and foreign-invested enterprises.

Besides

There is a dedicated set of survey methods

to obtain and calculate the average salary

↓↓↓

According to the "Statistical Survey System for Enterprises" and the "Labor Wage Statistical Survey System" formulated by the National Bureau of Statistics, the average wage adopts the method of comprehensive survey for one set of table legal entity units, and adopts the method of sample survey for non-set table legal person units.

For example, an industrial legal person unit with an annual main business income of 20 million yuan or more is called an industry above designated size, which must be included in a set of table statistics. Wholesale trade with an annual main business income of 20 million yuan or more, and retail business units with an annual main business income of 5 million yuan or more are called wholesale and retail trade above designated size, and must be included in a set of table statistics.

02

Average wage

What's the use?

First of all, wage data can be used to compare labor cost accounting and market competitiveness. Wages reflect the price of labor, is one of the important labor market indicators, is the basis for various regions and industries to formulate wage standards and carry out labor cost accounting, and is also an important data for international comparison and evaluation of international competitiveness.

Second, wage data reflect the basic situation and changes in the primary distribution of national income, and can reflect the wage distribution relationship and the trend of wage differences between different industries and different positions, which is very important for national economic accounting and research and formulation of income distribution policies.

Finally, wage data is also an important basis for the collection and payment of various social insurances and the basic data of the compensation system.

According to the law of previous years

Adjustment of the social security contribution base

It is generally linked to the average social wage of the previous year

When wages rise, the base rises

In recent years, the national social security payment base has continued to rise, with reference to 2023, according to incomplete statistics, the lower limit of the payment base in all provinces across the country will increase by about 4%-12%, and the median will be about 7%-8%.

According to the yearbook of the National Bureau of Statistics, in 2022, the average wages of employees in urban non-private and private units increased by 6.7% and 3.7% respectively over the previous year, and the growth rate fell by 2.98 and 5.2 percentage points year-on-year.

Up 823 yuan / month! Do you understand the average salary correctly?

03

Why the average salary

Higher than we feel?

First of all, it is related to the average salary algorithm mentioned above, for example, the average salary reflects the pre-tax salary, and the public's perception of salary income is often based on the actual salary paid, and the pre-tax salary is definitely higher than the actual salary.

Second, the average salary is not equal to the individual salary, and the individual salary cannot be simply compared with the overall average salary. Average wages are more likely to be influenced by high-income groups.

Average wage is an indicator that reflects the overall situation of wages, and is an average concept calculated by the statistical department based on the aggregate data reported by each unit. Due to the different industries, regions and economic benefits of each unit, the wage level of each unit is high and low, with units higher than the overall average wage feeling that the data is low, and units below the overall average feeling that the data is high.

Up 823 yuan / month! Do you understand the average salary correctly?

According to statistics, the wage income structure is usually skewed to the right, with the mode and median concentrated on the left side of the smaller value, and a small number of high-income groups dragging a long tail on the right side to pull up the overall average income.

For example, there are five people in a certain place, and the monthly salary is 1,000 yuan, 1,000 yuan, 1,300 yuan, 1,700 yuan, and 20,000 yuan respectively. The average salary of the five people is 5,000 yuan. The next month, the salary of the highest wage earner dropped sharply to 5,000 yuan, and the average salary of the five people for that month was greatly affected by the maximum change, from the original 5,000 yuan to 2,000 yuan.

In such a situation

Why is the average salary calculated?

Mainly because of the inter-regional conduct

When comparing wage gaps between industries

It is not possible to make a one-to-one comparison with individual data

There needs to be an indicator that reflects the overall level

Hence the average wage indicator

It is mainly used for macro policy research

and not suitable for comparison with personal salaries

Up 823 yuan / month! Do you understand the average salary correctly?

What do you think about this?

Let's talk in the comments section

-END-

Edit | Xie Xin

Proofreading | Zheng Fang, Wei Ding, Wang Jianjiao, Nie Xiang

Proofreading | Lan permanently

Executive Producer | Weekly

Source of information | National Bureau of Statistics, Caixin Weekly, Sichuan Statistical Official WeChat, Shenzhen Municipal Bureau of Statistics