Annual bonuses may be less generous
Most Chinese employees are expected to receive a year-end bonus, but more companies are holding back on the amount, according to a report released last week by one of the country’s leading human resources companies.
The 2018 Corporate Annual Bonus Payment Plan Report, released by CIIC HR Management Consulting, was based on a nationwide survey of 674 enterprises in late November. Twothirds of them were based in big cities — Beijing, Shanghai, Guangzhou and Shenzhen.
Ninety-three percent of enterprises responding to the survey said they would give employees year-end bonuses before the Chinese New Year holiday in early February. That was slightly less than the 96 percent who said so last year.
Moreover, the amount of money given as bonuses — previously equivalent to one or two months’ salary in most cases — is unlikely to go up for many. This year, 46 percent of the enterprises said they will increase the amount of the bonuses over last year — adding up to 10 percent. But last year, about 57 percent of the enterprises surveyed said they would increase the payouts, the report said.
Roughly 40 percent of enterprises said they would pay the same amount in year-end bonuses as they did the previous year. The remaining 15 percent will cut their year-end bonus budget.