In 2023, China announced big pay cuts for staff at its three main financial agencies: the People’s Bank of China (PBOC), the National Financial Regulatory Administration (NFRA), and the China Securities Regulatory Commission (CSRC). Starting this month, salaries for these employees will be reduced by about 50%.
This decision is part of a larger plan to align their pay with other civil servants in the government. The regulators had been earning much higher salaries than regular government workers, which raised concerns. For example, heads of departments at the CSRC earned around 300,000 to 400,000 yuan a year, which is nearly double what other government employees earn.
The goal of these cuts is to help boost consumer spending as China works to improve its slowing economy. Despite the pay cuts at the financial regulators, many government workers recently received surprise salary increases of around 500 yuan ($70) per month, showing a split in how wages are being managed.
In the past, the PBOC, NFRA, and CSRC had a different pay system that allowed them to earn more than other state workers. However, they will now have their incomes reduced to match other government agencies like the Ministry of Finance.
This change comes at a difficult time for China, as the government tries to stabilize economic growth and improve spending among its millions of civil servants. Many young people are still attracted to civil service jobs due to their security and benefits, even as some local governments struggle to pay their workers.
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