China raises minimum wages amid drive to boost household spending

China has recorded a five-year peak in the number of provincial governments raising minimum wages, official data showed, as Beijing pledges to “invest in people” to support economic growth over the course of its latest five-year plan.Twenty-seven of the mainland’s 31 provincial-level jurisdictions have increased monthly minimum wages over the past year, with half introducing double-digit rises – outpacing China’s 5 per cent gross domestic product growth rate in 2025 – according to the Post’s calculations based on data released by the Ministry of Human Resources and Social Security this month.The higher pay – part of a broader effort to spur household spending – would mostly benefit factory workers and those in low-paying service roles, such as cleaners, security guards and supermarket cashiers, analysts said.“Consumption capacity is directly related to income distribution. If residents have sufficient income, they will be able to consume,” said the authors of a research note by Yuekai Securities on January 11.“To fundamentally solve the issue of weak consumption, the key still lies in reforming [the] income distribution system.”Hebei province in northern China recorded the largest increase, raising its minimum wage to 2,080 yuan (US$299) per month from 1,800 yuan – a 15.6 per cent rise since the start of 2025.