China Implements Surprise Wage Hike for Millions of Government Workers

China has raised millions of its government employees’ wages in a move that was least expected. The new measures announced suddenly concern approximately 48 million civil servants including teachers, policemen, and civil servants , whose average monthly wages have been upped by 500 yuan ($68.50).

The massed salary increase paid via a single lump sum payment and backdated to July will infuse the Chinese economy with between $12bn and $20bn. Junior government workers received a monthly pay raise of about 300 yuan ($41) to become the first Chinese civil servants to be paid more since 2015 when local officials had a 30% pay rise to address corruption and to boost domestic consumption.

Similarly, the Chinese government has not disclosed much about the implementation of this huge wage increase drive, especially the sources of funds and the total cost of the exercise. The State Council Information Office has not replied to requests for comment on this major economic policy, revealed first by Bloomberg, and corroborated by affected workers through social media and direct messages.

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