Rumor has it that China’s 48 million civil servants are about to receive a pay raise, with authorities potentially injecting around 100 billion yuan into the Chinese economy. However, critics argue that this move to increase salaries is favoring better-off civil servants, leading to another form of social inequality.
According to reports from Reuters, Chinese civil servants have received a pay raise this week, with an average monthly increase of around 500 yuan.
Estimates suggest that if all 48 million Chinese civil servants were to receive this level of salary increase, it would inject around 12 to 20 billion US dollars into the Chinese economy in one go.
Furthermore, retirement pensions for retired Chinese civil servants are also set to see significant increases.
In fact, rumors of Chinese civil servants receiving a pay raise starting from New Year’s Day 2025 had been circulating on Chinese social media networks two weeks ago, and were subsequently disclosed by foreign media outlets.
Bloomberg reported on December 31st, citing insiders, that the top decision-makers of the Chinese Communist Party are attempting to boost morale and stimulate consumption by significantly increasing the salaries of all civil servants nationwide, marking the first large-scale salary adjustment in years.
However, solely raising civil servants’ wages could trigger strong discontent among private sector employees, potentially leading to social backlash. Many private sector workers are currently facing the dilemma of declining wages.
The Chinese authorities are attempting to revive the economy in response to the longest period of sustained monetary tightening since 1999. So far, the top leadership of the CCP has mainly relied on interest rate cuts and support for the real estate industry to encourage consumption, rather than distributing cash directly to the general public.
On the social media platform Weibo, some users expressed their sentiments, with one commenting, “The common people will be even less likely to spend money, won’t even order takeout, just buying discounted groceries every night.” Others vented their frustration, saying, “Not a single cent is given to the masses.” “Masses” is a self-deprecating term used on the internet.