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China’s civil servants to get long-delayed pay rise, but will it boost economy?

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After a few years of belt-tightening, millions of Chinese civil servants are expected to bring home a much-delayed pay rise ahead of Lunar New Year later this month.

Several civil servants and workers at public institutions in China said they had received notification from their finance or human resources departments about an increase in their basic monthly pay.

They said the amount, ranging from 300 to 500 yuan (US$41 to US$69), would be effective before the holiday, also known as Spring Festival, which falls on January 29. But the exact amount will vary depending on location, local budgets, position and seniority.

An official in the central government in Beijing said he and his colleagues were formally notified about the pay rise in the last week of December.

“It certainly helps to improve morale in the office as the festive season is just around the corner. But we are also reminded not to openly discuss it,” he said, declining to be named due to the sensitivity of the issue.

For those whose pay will rise by 500 yuan, the net increase in take-home pay is around 350 after social security contributions.

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