Is a nationwide salary increase wave coming?

A signal that sparks imagination has arrived! According to reports from the Financial Associated Press, BYD has initiated salary adjustments for its technical research and development personnel, with increases ranging from several hundred to over three thousand yuan. If only one company adjusts salaries, it can only be considered ordinary news. However, since December, it seems like top companies have made a pact: CATL, ByteDance, and BYD have announced salary increases one after another. Three giants from different fields have joined this 'salary increase wave.' Could it be a coincidence? A reassuring note first: the salary increase is not a coincidence but a swift response from leading enterprises to policy changes. The Central Economic Work Conference, which concluded on December 11, clearly stated the need to 'formulate and implement plans to increase the income of urban and rural residents.'

Discussions about salary increases happen every year, but this year's expressions have noticeably changed compared to previous years. First, past documents often focused on low- and middle-income groups, while this year it has expanded to include all urban and rural residents. This means that the policy coverage has changed, shifting from basic support to comprehensive stimulation. Second, this year's conference explicitly stated 'formulate and implement,' transforming from past principle-based opinions to concrete action plans. Subsequently, local plans, industry support, and company responses will be rolled out intensively. This time, it is serious. Third, increasing the proportion of labor compensation in the initial distribution is evident. The intention is clear: to ensure that hard work can lead to wealth more directly. Therefore, the trend is very clear.

This salary increase is a comprehensive, systematic, and institutional income enhancement reform. So why is the country bringing up 'salary increases' at this juncture? Everyone can feel the current economic environment. External uncertainties are rising, trade barriers are intensifying, and the export 'cart' is facing fluctuations at any moment. Internally, the demographic dividend is narrowing, the real estate sector is undergoing deep adjustments, and the marginal benefits of infrastructure are declining, posing challenges to traditional growth engines. Boosting resident income has evolved from a livelihood issue to a strategic pivot for economic breakthroughs. The future of the Chinese economy needs to be built on a virtuous cycle driven by domestic demand, income growth, and industrial upgrading. With clear policy indicators, it’s time to discuss implementation. Salary increases are not just a matter of lip service; will companies be willing to respond? Where will the money come from?

For large enterprises, salary increases are a necessary means to attract and retain talent. Starting from June 2025, large companies are driving a recovery in overall recruitment demand, with the number of new monthly positions surpassing the same period last year. The number of new AI positions has increased by 543% year-on-year, and the demand for talent is in a 'blowout' state. Just a few days ago, ByteDance announced the launch of a new round of global salary system reforms, clearly stating that it aims to 'ensure that employee compensation competitiveness and incentive returns are 'leading ahead of top levels' in all global markets.' Large model technologies have transitioned from the exploratory stage to a period of intensive arms races, emerging tracks are exploding, and industries are facing reconstruction. In the wave of old and new alternation, talent is the navigator. Whoever attracts the smartest minds will have a greater chance of navigating through storms and even defining the rules for the next journey.

For industrial enterprises, salary increases are not a cost issue but a value redistribution. As of November, BYD's domestic sales have seen a 'triple decline' year-on-year; why does it still have the confidence to raise salaries? That’s because people haven’t seen the other side of BYD's financial report. In the first 11 months of 2025, BYD's overseas sales reached nearly 910,000 units, far exceeding the total overseas sales for the whole of 2024. In the European market, BYD's sales in core automotive countries such as the UK, Germany, Italy, and Spain have comprehensively surpassed Tesla. In emerging markets like Brazil, Thailand, and Turkey, BYD has also entered the top ranks of local new energy vehicle sales. More importantly, regarding profit structure, according to relevant institutions, BYD's domestic net profit per vehicle is between 4,000 and 6,000 yuan, while the net profit per vehicle for overseas models reaches as high as 14,000 to 16,000 yuan. In other words, selling one overseas vehicle at BYD equals the profit of three to four domestic vehicles.

From January to October this year, the total value of China's goods trade imports and exports reached 37.31 trillion yuan, a year-on-year increase of 3.6%; among which, high value-added and independent trade accounted for an increasingly higher proportion. The export of electromechanical products reached 13.42 trillion yuan, an increase of 8.7%, directly accounting for 60.7% of the total export value. The export growth rate of 'hard technology' categories such as integrated circuits and new energy vehicles far exceeds the average level. To open up high-profit markets with technology, it is essential to attract and retain core talents that support enterprise innovation through salary increases. However, enterprises like ByteDance and BYD are still a minority in the overall economic landscape; ordinary enterprises and ordinary people face the most authentic and rough battlefield of salary increases. A nationwide salary increase raises the question: where will the money come from? How will increases occur? 1. Income from wages First, the most direct source of salary increases:

Wages. Wage income accounts for more than half of residents' income. The state has directly stepped in to compel companies to raise salaries; since 2025, more than 20 provinces have raised the minimum wage standard.

2. Operating income So, will forced salary increases drag enterprises down? This is a soul-searching question. China has over 100 million individual business owners and tens of millions of small and micro enterprise owners. Their income does not come from wages but from operating profits. The state supports small and micro enterprises through tax reductions, financing support, and optimizing the business environment to 'boost income,' indirectly promoting bosses to increase profits and employees to increase salaries. The state also provides targeted financial support. This year, the scope of special loans for stabilizing jobs and expanding positions has been further expanded, and the credit limits have been raised, such as Hubei raising the loan cap for small and micro enterprises to 50 million yuan. The approval process has also been optimized to focus on covering manufacturing, livelihood services, and other fields.

3. Transfer income The state provides financial support through pensions, medical insurance, childcare subsidies, etc., alleviating concerns for everyone. This is not strictly a 'salary increase,' but its effect is no less than a direct salary increase.

4. Property income Stabilizing the real estate market and stock market, increasing dividends from the capital market all promote the growth of residents' wealth. This does not mean allowing housing prices to surge again, but rather to avoid a hard landing of asset values. Protecting the home, which is the most important asset for Chinese families, from depreciation is itself a safeguard for the 'wealth base' of most people. Providing the public with wealth options beyond just bank savings, and allowing safe and compliant participation in the financial market to share in the benefits of economic development is more effective than any policy. When financial returns can consistently cover part of the mortgage each month, when stock market dividends can be exchanged for a new phone, and when rental income from idle properties can be saved for an annual family vacation fund, this 'passive income' brings a sense of security that stimulates consumption more than salary increases can. This round of 'salary increases' cannot just stop at the competition for talent among giant enterprises and the raising of minimum wages but must build a more three-dimensional system for nationwide income growth.