"Claiming the economy is tough, asking to return bonuses... 'Still, job competition remains fierce'"

Annual Salary Cut Up to 11.8%
Repayment Demanded from Retired Employees as Well

Following the economic downturn, Chinese banks have not only drastically cut salaries but have also demanded the return of already paid bonuses.

On the 1st, Hong Kong's South China Morning Post (SCMP) reported that according to the annual reports of Chinese banks last year, the average annual salary of employees at Bohai Bank, headquartered in Tianjin, was 438,000 yuan (approximately 81.74 million KRW), representing an 11.8% decrease compared to the previous year. Ping An Bank cut salaries by 8.5%, while China Merchants Bank and China CITIC Bank each reduced salaries by 6%. Commercial Bank and Guangda Bank also implemented cuts in the 3% range.

Ten financial institutions, including state-owned banks and joint-stock lending institutions, demanded the return of performance bonuses totaling 99.88 million yuan last year. This marks a notable change compared to 2022, when only three institutions reclaimed bonuses. China Merchants Bank ordered 4,415 employees to return a total of 43.3 million yuan, while Bank of China issued similar instructions to 2,059 employees, and Bohai Bank to 499 employees.

A banker in Guangzhou told SCMP, "Almost every employee in the industry has experienced salary cuts over the past few years, and currently, the ratio of paid wages to actual wages is about 60%." He explained, "An employee who has worked as a banker for 20 years might earn around 200,000 yuan annually." He added, "Still, competition to enter the banking sector remains fierce," noting, "Colleagues at the same company all graduated from prestigious global universities, and their post-tax income is about 6,000 yuan."

SCMP reported that China is promoting the establishment of a "modern enterprise system with Chinese characteristics" as part of President Xi Jinping's goal to build a financial superpower, which means financial institutions are facing various changes and regulations. Since 2021, regulatory authorities have been implementing procedures to delay salary payments and reclaim bonuses from senior executives and employees, including those who have resigned or retired. Banks accounted for about 90% of the 461 trillion yuan Chinese financial industry last year, with the majority under government control.