JD, a leading Chinese e-commerce company, announced in early January that 92% of its employees had received their full year-end bonuses. The company's bonus budget increased by over 70% compared to 2024. Office staff with an A+ rating could receive up to 10 months' salary in bonuses. Purchasing and sales department employees are expected to receive an average of 25 months' salary in 2025, with no maximum limit.

A pile of year-end bonuses at a Chinese company. Photo: Sina

ByteDance, the parent company of TikTok and Douyin, announced a 35% increase in its total bonus budget for 2025 and a 150% increase in its salary adjustment budget compared to 2024. This move aims to ensure a leading competitive edge against global market rivals.

Beyond software companies, manufacturing businesses are also increasing compensation. Battery producer CATL raised the basic monthly salary for factory workers by 22 USD. Electric vehicle manufacturer BYD increased the basic monthly salary for research and development (R&D) technical staff from 70 USD to a maximum of 645 USD.

Industry experts state that increased compensation is a strategic step to motivate employees, improve engagement, optimize human resources structure, and enhance corporate competitiveness.

"The focus of industry competition has shifted to the battle for core talent. Increasing salaries and optimizing the compensation system directly affirm the value of employees to the company", said Zhu Keli, director of the New China Economic Institute.

However, he noted that a strategy of sharply increasing compensation could put pressure on corporate profit margins in the short term.

Jiang Han, a senior analyst at Pangoal, believes these measures will create a ripple effect, prompting other companies to follow suit to maintain employee satisfaction and work efficiency. In the long run, this will positively impact the entire Internet and technology sector.

Hong Hanh (via China Daily)