Massive year-end bonuses at Chinese internet, tech companies

Chinese internet and tech companies have unveiled what they would pay as year-end bonuses, with the top payout hitting the equivalent of 10 months' salary — a significant move that industry experts said will help retain and attract high-caliber talent and enhance corporate competitiveness moving forward.

They emphasized that these initiatives will not only further stimulate employee enthusiasm, improve their sense of belonging and optimize talent structure, but also help companies gain an upper hand in the highly competitive tech sector, while also elevating the industry's compensation levels.

The year-end bonus plans came as the tone-setting Central Economic Work Conference in December listed implementing urban-rural income growth plans to boost the domestic market as one of the priorities for economic work in 2026.

Chinese e-commerce giant JD said 92 percent of employees received their full year-end bonus and its total investment in bonuses has increased by more than 70 percent compared to that in 2024.

Within the departments that achieved a 19-month salary system at JD for 2024, employees with an "A+" performance rating could receive a bonus of 10 additional monthly salaries, which is equivalent to 22 months' pay for the entire year, while staff members with "A" and "B+" performance ratings could get 21 — and 19-month salaries, respectively, the company said.

It is noteworthy that JD's procurement and sales departments were expected to receive an average of 25 months' salaries in 2025, with no upper limit.

ByteDance, the owner of popular short-video apps TikTok and Douyin, announced a 35 percent rise in total annual bonus allocations for employees in 2025, while spending on salary adjustments was set to go up sharply, increasing by 150 percent compared with 2024.

In addition, the company raised both the minimum and maximum limits of total compensation packages across all job levels.

ByteDance said in an internal letter to employees that the move was to ensure that employee compensation competitiveness and incentive returns are "leading among top-tier peers" across global markets. It will continue to increase investments in talent, enhance salary competitiveness and strengthen equity-based incentive programs.

Zhu Keli, founding director of the China Institute of New Economy, said the significant increase in year-end bonuses of internet and tech companies was a direct response to the Central Economic Work Conference's call for increasing residents' incomes to unlock consumption potential and help smooth the domestic economic circulation.

"The focus of industry competition has shifted to the battle for core talent. The salary increases and optimized incentive systems are aimed at retaining key employees and attracting high-quality talent, highlighting these companies' recognition and affirmation of employees' value," Zhu said.

He added the move will boost employee confidence, improve corporate operational efficiency and stimulate employees in striving for breakthroughs in key businesses, but that a sharp increase in salaries might also squeeze short-term profit margins for enterprises.

Chinese battery maker Contemporary Amperex Technology Co Ltd (CATL) said it would increase the monthly base salary of frontline staff by 150 yuan ($21.5) for 2025 to better attract and retain employees.

BYD announced a pay rise for its technical research and development staff, with the increase ranging from 500 yuan to 3,000 yuan, and a maximum rise of up to 4,500 yuan.

A series of year-end bonuses and salary incentives have demonstrated that these firms attach great importance to and care for employees, and these initiatives are crucial to maintaining the stability of employees, motivating their work enthusiasm and creativity, and improving team cohesion, said Jiang Han, a senior analyst at market consultancy Pangoal.

It will also improve the compensation and salary level of the industry, and enhance enterprise competitiveness in the talent market, he said.

He said other firms may follow suit, given that salary increases will be conducive to enhancing employee job satisfaction and happiness, thus helping elevate work efficiency and innovation capacities. "In the long run, these measures will have a positive impact on the internet and tech sector."

fanfeifei@chinadaily.com.cn