Under this system, the country is divided into eleven wage regions. Thus, there are eleven different variations of the thirty wage-grades of civil servants. The differential between each regional scale is about 3 percent, making a disparity of 30 percent between the highest and the lowest scales. There has been scant information in the Chinese press as to how the scales are determined or where the eleven regions are. The fist or highest scale is reported to be in force at Hai-k'ou on Hainan Island, the second in Canton and Shanghai, and the third in Peking and Tientsin.
Source: wiktionary