In recent years, news of salary cuts in the banking industry in China has been continuously emerging. On a certain social media platform, the topic of “bank salary cuts” has been viewed nearly a million times. Some netizens mentioned that they have already experienced two rounds of salary cuts, with an average monthly salary decrease of half. The latest reports indicate that a certain local bank customer manager, who used to have a monthly salary exceeding ten thousand Chinese Yuan (RMB), now earns less than 1000 Yuan.
According to data from Wind, in 2023 out of the 42 A-share listed banks, 14 of them experienced a decrease in average staff remuneration, with the largest decline reaching 13.95%.
On May 21st, Pengpai News reported that in mid-May, Zhao Jia, a customer manager at a local bank in western China, received her salary for the month – base pay plus performance bonuses, minus the monthly deductions for social security and other contributions, leaving her with less than 1000 Yuan. The previous month, this figure was over 2000 Yuan. Before the salary cuts, her monthly salary was over ten thousand Yuan.
The trend of salary reductions can also be seen in the statements made by various bank executives. Zhao Fei, Chairman of Zhengzhou Bank, mentioned during the performance briefing that the bank has proposed to “tilt the front line, optimize resource allocation” and “reduce costs and increase efficiency”, with senior executives’ salaries set to decrease by 10% annually starting from 2024. Simultaneously, the bank will streamline salary distribution differentials, reallocating the adjusted salary resources to grassroots employees.
The phenomenon of “demanding back pay” by several listed banks has also caught the market’s attention. As of the end of March this year, at least 7 listed banks disclosed specific details of recouping last year’s performance bonuses, totaling 52.8097 million Yuan.
Entering her 12th year in the banking industry, Zhao Jia, mainly responsible for bank deposits and retail business, noticed a decrease in her salary. She, who used to frequently take taxis, is now forced to choose public transportation for commuting.
The most noticeable impact is on the monthly performance bonuses. Zhao Jia mentioned that this year, the commissions earned for attracting deposits have significantly decreased compared to before, resulting in over a 90% drop in her monthly salary.
Zhao Jia stated that banks did not clearly inform employees of budget cuts in salaries, but rather reduced employees’ salaries indirectly by raising assessment standards. As per her understanding, the total amount allocated for salaries this year has declined by nearly 30%.
Wang Bin, a manager at a branch of a state-owned major bank in southern China, mentioned that the branch’s total salary allocation is determined by the higher management based on the branch’s performance increase. With the economic downturn, customer managers are unable to meet the set performance targets, leading to a decrease in the branch’s performance and consequently affecting the total amount of allocable salaries.
Wang Bin mentioned that the annual salary of customer managers at her branch has decreased by approximately 40,000-50,000 Yuan.
Working in the middle and back office of another state-owned major bank, Luo Dan shared that in her bank, the majority of employees have experienced a salary decrease.
Zhao Jia, Wang Bin, and Luo Dan all noted that compared to previous years, benefits like meal subsidies in banks have also decreased.
With the backdrop of declining salaries, where are bank employees heading to?
Zhao Jia, Wang Bin, and Luo Dan have chosen to stay. Zhao Jia mentioned that although future salaries may further decline, this is a stable and respectable job with full social security benefits and decent welfare.
Having worked in a bank for nearly 30 years, Luo Dan is approaching retirement. She mentioned that despite the salary cuts, at least she is no longer as busy and stressed as she was during her time at the branch.
However, some have chosen to leave. Yao Yao, who graduated last year, decided to resign. She mentioned that two weeks after her resignation, two other fresh graduates who joined at the same time as her also resigned. Considering the number of previous resignations among fresh graduates, out of 6 who joined, 4 have already chosen to leave.
Wang Bin observed that in recent years, most of those resigning are young people. The high pressure at work in banks might not correspond with the rewards, leading some freshly recruited employees to quit after 2-3 months in the branch. Those who decide to stay are mainly middle-aged individuals who feel the pressure of providing for their families, opting for a stable job.