<p>Digital transformation and entrepreneurial activity are key variables influencing corporate behavior. To optimize income distribution and reduce income inequality, it is essential to delve into the impact of digital transformation and regional entrepreneurial activity on employee wages. This paper employs data from Chinese A-share listed companies from 2014 to 2023 to examine the impact of digital transformation on employee wages and the moderating role of regional entrepreneurial activity. Theoretical analysis suggests that digital transformation may suppress employee wages through the job substitution effect but can also enhance wages via productivity gains and job creation. Regional entrepreneurial activity moderates this impact by mitigating the job substitution effect and amplifying productivity and job creation effects. Empirical results indicate that: (1) digital transformation significantly increases employee wages; (2) regional entrepreneurial activity positively moderates the relationship between digital transformation and employee wages; (3) the promoting effect of digital transformation on employee wages is mainly observed in the non-SOEs, manufacturing, and eastern region samples. Based on these findings, the paper proposes three policy recommendations. First, encourage enterprises to undertake digital transformation to boost wage growth. Second, strengthen regional entrepreneurial support and optimize the entrepreneurial environment. Third, implement differentiated policies to optimize resource allocation for digital transformation.</p>