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newsletter: China’s wages still low

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New government figures indicate that per capita income in China still trails developed countries, and people in the cities enjoy a far better standard of living than their country cousins. Urban per capita income stood at 8,065 yuan in the first half of 2008, while people in the country drew 2,528 yuan according to the data.

China has been in the limelight recently thanks to the Beijing Olympics. Since the 1980s when most of the population depended on the government for their jobs and housing, China has undergone an economic transformation and will shortly become the world's third-biggest economy.

Those in Beijing are the richest in terms of healthcare and wellbeing. Their per capita wages much higher than the national average. According to Beijing's municipal bureau of statistics, per capita income of its residents was 21,989 yuan last year, up 13.9% from 2006. Those living in the rural outskirts made 9,559 yuan. As people flock from the countryside to the city looking for higher wages, Beijing's population is swelling, including five million people classified as migrants.

A small two-bedroom apartment near the Olympic Bird's Nest venue costs upwards of 300,000 yuan. Property escalated in price following China's entry into the World Trade Organization in 2001 and its winning bid for the Summer Games. Employers often help with buying an apartment as part of a total reward package.

That is not the only benefit companies offer. In China women can retire at age 55 and men at age 60. State pension kicks in at 60 for women and many employers' voluntary benefits for their staff continue into retirement when they pay around 75% of a full salary. China's international benefits compare favourably with other countries. Unlike elderly people in developed nations like the US, employers often pay health insurance for life.

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