Blix's insider Alejandro Gomis confirmed rumors circulating a few years ago about the highest salaries in LPL. According to his sources, about seven top Chinese players had an annual salary of 30 mln RBM (~ $4 mln) a few years ago. Zhuo "knight" Ding (Suning, Top Esports) probably had the highest-ever salary, reported at 45 mln ($6.6 mln).
These record-breakers caused the disparity between top-tier earners and regular players. In 2020, LPL imposed salary caps to fix the situation. According to Gomis, there are several tiers of these restrictions. The very top players, who perform in the league and internationally, are considered the best. The next, "A-Tier," includes players exceptional in LPL but not worldwide.
The teams also have salary caps that shouldn't exceed $1.5 mln. There are "indications" that this restriction was increased, but the insider cannot confirm it. A "Luxury Tax" exists to penalize those who break the rules, depending on how much they exceed the salary caps.
There are several exceptions for team salaries. For example, "each team can bring one player every year who is not governed by Financial Fair Play." In other words, they can invite a prominent foreign player. This is how Faker was able to receive offers exceeding even the mentioned astonishing numbers.
