Rumors about salary increases for Chinese civil servants have recently been confirmed by multiple sources online. Due to the economic downturn, the Chinese Communist Party (CCP) has decided to raise salaries for civil servants only, without providing subsidies to the general public, sparking heated discussions on the internet.
Bloomberg reported on Tuesday (December 31) that according to sources familiar with the matter, the CCP leadership is attempting to boost morale and stimulate consumption by significantly increasing salaries for civil servants nationwide, marking the first large-scale salary adjustment in many years.
Subsequently, various unofficial online sources in China further confirmed the overall salary adjustment for civil servants. The reported salary increase is in line with Bloomberg’s report, citing sources saying that the basic salaries of most civil servants have been raised by at least 500 yuan per month, effective from July 2024.
The salary adjustment is linked to the basic wage. According to one insider, the increase is around 5%. The last time China publicly raised civil servant salaries was in 2015 when the monthly average salary for 40 million civil servants nationwide was increased by 300 yuan.
As of now, the CCP has not issued any public statements regarding the salary increase plan, making it difficult to determine the scope of the adjustment and its funding source. Both the State Council Information Office and the Ministry of Human Resources and Social Security of China have not responded to Bloomberg’s request for comments.
Insiders say that this salary increase covers teachers, police officers, and civil servants nationwide.
A police officer from the southwest region revealed that he found an extra 3,500 yuan in his December salary statement, labeled as “retroactive (salary).” He mentioned that this retroactive payment was calculated from the salary increase starting in July.
The report mentioned that by making a one-time retroactive payment, the government hopes to boost the consumption of civil servants during the New Year and Chinese New Year holidays.
However, merely increasing civil servant salaries may lead to strong dissatisfaction among private sector employees, potentially sparking social backlash. Many private sector workers are facing wage cuts.
The Beijing authorities are trying to boost the economy to address the longest-lasting period of monetary tightening since 1999. So far, the CCP leadership has mainly relied on interest rate cuts and supporting the real estate sector to encourage consumption, rather than providing cash handouts to the general public.
On the social media platform Weibo, netizens commented, “People will be even less likely to spend money, won’t order takeout anymore, and will only buy discounted groceries every night.”
Some expressed their discontent, saying, “Not even giving a penny to the common folk.” “Common folk” is a self-deprecating term used on the internet.
Another netizen sarcastically remarked, “The common people have been waiting for money to make it through the winter, but they receive a pile of documents; civil servants have been issuing documents all along, but suddenly receive a significant salary increase.”
Some questioned, “Haven’t many local governments been unable to pay salaries? Where does the money for this raise come from?”
It remains unclear whether local governments have the capacity to afford this salary increase. The collapse of the real estate market has led to local governments facing a debt crisis, with many civil servants complaining about reduced bonuses, salary cuts, and even delayed salary payments. Even the wealthiest provinces in China are struggling due to economic slowdown.
A teacher from the eastern part of China told Bloomberg that while her December salary increased and she received a one-time retroactive payment since the summer, considering the recent reduction in bonuses, her actual income has not increased. A civil servant also stated that this salary increase is far lower than the losses incurred from previous rounds of salary cuts.
One netizen revealed what he knows, “It was rumored that the salary increase was 500 yuan per person, but in reality, most young civil servants received only two to three hundred yuan, only chief officers and above with more experience received over 500 yuan. In addition, in the past few years, under the guise of subsidy clean-up, the salaries were actually reduced two or three times, totaling a reduction of about 30%.”
Earlier this month, the Communist Party’s Politburo meeting promised to take action to motivate civil servants to drive national economic recovery. This stance contrasts sharply with Party leader Xi Jinping’s warning to officials a year ago to “get used to living a tight life.”
Some netizens predicted, “Civil servants just experienced a salary cut, now they are getting a raise, in a few days there might be another pay cut.”
Reuters reported on Monday (December 30) that interviews with ten civil servants in four provinces in China revealed that this year’s widespread bonus cuts and up to 30% salary cuts have prompted some to consider resigning. Local government austerity measures have resulted in sporadic layoffs.
Some civil servants mentioned that they have not received their salaries for several months, while others can barely make ends meet with only 4,000 yuan per month, having to support their families and repay loans. To avoid retaliation, most interviewees chose to remain anonymous.
Despite the CCP’s claims of job cuts, the number of civil servants has increased from 6.9 million in 2010 to the current 8 million, in addition to 31 million public employees, such as school and hospital staff.