In recent years, China’s economy has been in a continuous slump, with local finances facing difficulties and widespread reports of layoffs and pay cuts across various industries, including rumors of salary reductions for public servants. However, as the year drew to a close and the new year began, news of salary increases for Chinese public servants emerged from unofficial sources, confirmed by insiders to Epoch Times. Experts say that Beijing’s decision to increase salaries for public servants is aimed at ensuring political stability, a practice that goes against universal values and international norms.
Reports from Reuters and Bloomberg at the end of last year touched upon the news of salary increases for Chinese public servants. It was reported that this salary adjustment dates back to July 2024, with an average monthly wage increase of around 500 yuan per person. The raised salaries were issued as one-time bonuses at the beginning of the new year. However, some grassroots government employees have indicated that their actual salary increase was only around 300 yuan.
The last nationwide salary adjustment for public servants in China was announced in 2015, with subsequent minor adjustments over the years until the outbreak of the pandemic halted further changes. This recent adjustment marks the first one since the pandemic.
There has been no official confirmation or public mention of the salary increase in Chinese state media or government documents, with sporadic discussions only found on mainland social media platforms.
Tian Liang (pseudonym), working in a municipal government department in Zhejiang, confirmed to Epoch Times on January 10th that the salary increase is indeed real. The amount of raise varies for each person, as per Tian Liang’s office where younger colleagues received an increase of 330 yuan per month. “I personally received a raise of 450 yuan per month, but it’s a drop in the bucket. In 2025, deductions for individual pension funds will increase, and the salary withheld from previous years will not be reimbursed to me.”
Tian Liang had previously disclosed to Epoch Times in October last year about salary reductions for public servants, citing a cumulative reduction of over 20% since 2021 which was implemented through various means rather than direct salary cuts.
On January 10th this year, another informant, Ming Sheng (pseudonym), informed Epoch Times that his father, a leading figure in a government department in a major city in mainland China, also received a salary increase. “My father’s salary has increased by around 1000 yuan per month. Here, middle-level cadres saw an increase of about 300 yuan, deputy directors increased by about 500 yuan, directors by about 700 yuan, and vice department heads by around 1000 yuan.”
It remains unclear if only public servants received salary increases. An office worker at a state-owned bank in Hubei province informed an Epoch Times reporter on January 10th that since the end of last year, their branch’s annual salary had decreased by about 10%.
However, as reported by Radio Free Asia, teachers in various regions expressed on social media that they had received retroactive salary payments. Hong Kong’s Sing Tao Daily reported that a woman employed in a municipal institution in northeast China mentioned salary increases and that the salary increments from the end of 2024 would be paid out as bonuses.
Many media analysts speculate that the purpose of the Chinese authorities’ salary increases for public servants may be to boost consumption. This is reflected in recent statements by officials in Chongqing urging officials to lead by example in consumption, which has sparked heated discussions online.
A regional economic work meeting was held in Rongchang District of Chongqing on January 6th. Local media reported that the district secretary, Gao Hongbo, urged officials to lead in consumption, suggesting they buy a new set of clothes before the Chinese New Year for themselves, their families, and their children. “I hope that every weekend we will dine out with our families. The average consumption in Rongchang is 60 to 100 yuan per person, so our consumption can bring in 1 million yuan.”
Chinese financial blogger “Masked Finance” expressed on social media regarding the public servants’ salary increase: “With all the tight funds in society and the huge debt pressures facing local governments, how much can really be added? Will giving public servants a raise make them buy houses? I don’t think so.”
American economist David Huang told Epoch Times that while the surface rationale for increasing public servant salaries is to stimulate consumption, stabilize social structure, and enhance welfare, the ultimate goal remains to ensure political stability.
He noted that the authorities are trying to prevent dissatisfaction among public servants, especially at the grassroots level who do not receive special services like high-ranking officials do. By increasing salaries, they aim to prevent economic distress from sparking social instability. These public servants form the foundational support for the regime, and the modest salary increases are seen as strengthening their execution capabilities and loyalty.
“In the current economic hardship, with everyone experiencing pay cuts, even a slight increase further widens the gap, portraying them as helpers of the ruling class to maintain administrative efficiency. Especially when sometimes these grassroots public servants are required to carry out actions that go against morality and social ethics, such as imposing fines on unfortunate drivers,” Huang explained.
He stated that Beijing’s decision to increase public servant salaries in response to the economic downturn reflects a kind of centralized governance philosophy, which contradicts universal values and international norms. In times of economic difficulty and public displeasure, the government should generally lead by example in pay cuts, particularly for public servants. However, the authorities are instead enhancing the incomes of both the violent organs that uphold their rule and the regular administrative personnel.
Senior figure in the mainland capital market, Xu Zhen, told Epoch Times that the Communist Party’s decision to nationally adjust public servant salaries at this time is essentially reliant on issuing national debt, indicating a need for the tax department to generate more revenue to prop up the Communist Party’s continuation. This exposes the current dire straits the Communist Party finds itself in.
Zhejiang public servant Tian Liang stated, “The public servant team was already somewhat unstable, which is why the Communist Party has come up with a loud announcement of salary increases, even though they are minimal.” He added, “They just want to give public servants the illusion that the Communist Party still values public officials, without realizing that all this money is being borrowed, and in the future, every individual will have to repay it, which is an act against conscience. They want public servants to bear the stigma.”