China gives government workers first big pay bump in a decade to boost economy

3/1/2025 17:06

Millions of government workers across China were given surprise wage increases this week, people affected by the move said, as Beijing looks to boost spending to support the slowing economy.



On a combined basis, the immediate payout would amount to a one-time shot to the economy of between about $12 billion and around $20 billion if all 48 million people counted as public-sector workers collected on the terms described to Reuters.



The last time China publicly announced a nationwide increase in pay for civil servants was in 2015, when the government raised pay for local officials by more than 30% as part of an effort to combat corruption and lift consumers' spending power.



This time, monthly wages for government employees were increased by an average of about 500 yuan ($68.50), according to people contacted by Reuters or who had posted on social media. Some junior government workers reported monthly increases of near 300 yuan ($41).