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The Cost of Living in China and your Salary

Written by Robert Vance on March 21, 2008 – 11:11 pm

As you are looking for a job in China, you will see a wide range of salaries on the internet. Some salaries will appear shockingly low while other salaries will seem fit for a king. Why the discrepancy? Is it always best to opt for the highest salary and most attractive benefit package?

The cost of living is a very important aspect of determining how good a salary package really is. For example, in Central China, where I first taught English, the cost of taking a taxi was around 3.00 RMB (about $0.43) for the first 2.0 KM. In Southern China, I have seen prices higher than 12.00 RMB(about $1.70) for the first 2.0 KM. Of course, you may rarely use taxis, but the price of a taxi can be one good indicator of the cost of living in a region. Another important measure for cost of living are housing prices. A salary of 7,000 RMB might sound attractice, but it won’t last long if you are paying 4000 RMB a month just for housing. Do not trust what your school tells you about housing costs in China. They will always quote you the lowest price which probably represents the worst living conditions in the city. Do your own research.

How do you do your own research? Use the search engines and look for information posted by other foreigners. I have found that there is information for almost every area in the country. Read what others are saying about the cost of transportation, housing, and food. Then, based on what you find, create a sample budget for yourself taking into consideration food, housing, utilities, transportation,entertainment and travel expenses. Be liberal with your estimates since you will probably always spend a little more than you anticipate.

There are areas of China were 4000 RMB a month is more than adequate while in other places, a salary of 10,000 RMB would be too little. Doing research on the cost of living can provide for you a powerful negotiating tool as well. Don’t be afraid to ask for more money especially during these times when there are teaching shortages throughout China. English is a big business in China and many schools have plenty of money to spend on foreign teachers so make sure you are being paid a competitive rate before you put your name on that contract.

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