Chinese Companies Cut Year-End Bonus, Ban Employees From Public Discussion
Last Updated:February 17, 2026, 12:25 IST
As China’s workforce approaches the year-end bonus season ahead of Lunar New Year, the atmosphere is markedly subdued compared with previous years
(Representative Image)
As China’s workforce approaches the year-end bonus season ahead of Lunar New Year, the atmosphere is markedly subdued compared with previous years. Social media no longer brims with posts flaunting large payouts; public discussions about bonuses have largely faded.
Once seen as a barometer of corporate health, industry momentum, and the broader economy, year-end bonus packages for 2025 have grown smaller, less common, and unevenly distributed. Slowing economic growth, squeezed profit margins, and heightened external uncertainty have all contributed to the change. Many companies have even prohibited employees from discussing bonus details in public, signaling a broader shift toward a “low-key” workplace culture. This contrasts sharply with the lavish bonuses and gifts distributed during China’s tech and real estate booms.
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Data Highlights the Shift
A 2026 market outlook and salary report by global HR firm Randstad underscores the trend. About 26% of respondents reported they would receive no year-end bonus for 2025, while nearly half said their bonuses would be limited to one to two months’ salary.
“Beyond a handful of profitable, high-growth AI and internet companies, year-end bonuses are unlikely in most industries, or will be extremely limited,” said Echo Luo, a Guangzhou-based job-hunter. Even companies with growth projections are keeping hiring conservative. “Only a few business units are planning small headcount increases, while the vast majority of departments have frozen hiring,” she added.
The trend extends to the public sector as well. Zhao Xin, a grassroots civil servant in Guangzhou, said he received a performance-based bonus equivalent to about one month’s pay. His unit has gradually reduced non-tenured staff in recent months, reflecting widespread tight staffing and constrained budgets in local departments.
Foreign enterprises are no longer seen as benefits pacesetters. Stella Wu, an HR manager at a German chemical firm, said exchange-rate fluctuations and headquarters’ metrics have limited bonus pools, with only a small share of employees eligible for payouts.
“Our China unit met targets in yuan terms, but when converted to euros, it fell short of headquarters’ expectations,” she explained. Following a companywide pay freeze last year, the firm only resumed modest salary increases of 3–5% in 2026.
A few companies are bucking the trend. JD.com and Dreame Technology disclosed details of their bonus packages. JD reported a 70% year-on-year increase in total year-end bonuses, with more than 90% of employees receiving full or above-target payouts.
Dreame, a smart hardware and AI company, added one gram of gold per employee on top of its standard bonus. Founded in 2017, Dreame is known for high-speed digital motors, AI algorithms, and motion control technologies, and is rapidly expanding into automotive power systems and humanoid robotics.
The disparity in bonuses is increasingly shaped by broader policy priorities. High-tech and e-commerce sectors outperform traditional manufacturing and consumer industries, reflecting government support for advanced manufacturing and strategic emerging sectors.
Private firms, particularly traditional manufacturers, face concentrated pressures from overcapacity, weak domestic demand, and intensifying competition. As a result, reducing year-end bonuses has become a common cost-cutting measure.
Li Cheng, a restaurant owner in Dongguan, a major manufacturing hub in Guangdong, said many factories are ending production earlier than usual for the Spring Festival due to insufficient orders. “The days when year-end bonuses were used to lure workers back early to meet holiday demand are long gone,” he remarked.
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February 17, 2026, 12:25 IST
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