Due to the recent decline in local fiscal revenue, the wave of salary cuts for civil servants shocked many places in China.
According to Caixin, Chinese mainland media on June 30 reported that many civil servants along the eastern coast of China have experienced a wave of salary cuts. Various self-imposed incentive subsidies have been canceled, and the salaries of civil servants have been reduced by about 20 to 30%. The article was quickly deleted.
According to the report, civil servants in Guangdong, Zhejiang, Jiangsu, and other places have been struck by the “storm” of wage adjustments.
A section-level cadre in Longhua District, Shenzhen, estimated that his income would be reduced by more than 20%. In the past, his annual salary could reach over 55,000 dollars with extra bonuses.
A grass-roots staff member in a township in Ningbo said that the wage adjustment would directly cut the bonus, which accounts for 40% of his income. Although the basic monthly salary has been increased by 300 dollars, the overall annual income is still cut by about one-third.
Chinese mainland media reported that a department-level cadre in Zhejiang told Caixin that the reduction would be more severe in more economically developed areas.
A deputy section-level cadre in southern Jiangsu received a salary cut of about 25%, which would account for about 15,000 dollars.
The annual salary of department-level civil servants in Shanghai has been reduced by 22,000 dollars to 30,000 dollars, and the annual salary of director-level civil servants has been reduced from 35,000 to 22,000 dollars.
In addition, some civil servants in Zhejiang, Fujian, and other regions have received salary reductions ranging from 15% to 20%. For example, the number of civil servants in Zhuhai decreased by 60,000 to 80,000 and in Shenzhen by 50,000 to 100,000.
Some scholars have analyzed that the wave of salary cuts for civil servants in many places is mainly due to the recent decline in local fiscal revenue. Taking Zhejiang as an example, before the epidemic began, the general public budget revenue of Zhejiang Province maintained a growth rate of about 10% for three consecutive years. In 2020, its growth rate plummeted to 2.83%.
The local governments’ fiscal revenue announced in April has fallen sharply. Shenzhen fell by 44% year on year, Suzhou fell by 49.6%, and many cities fell by more than 30%.
The mainland Chinese media, on June 14, also reported that Jiangsu, Zhejiang, and Shanghai had established a salary reduction. The annual salary of the Shanghai Division Level was cut from 52,000 to 30,000 dollars.
However, some Weibo users said that even if civil servants cut their salaries and extra bonuses, their lives would be much better than regular workers.