China’s Iron Rice Bowl Cracks, Civil Servant Salaries Plummet, Many Local Governments Can’t Pay

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At a time when private enterprises are constantly going bankrupt, China's so-called 'iron rice bowl' system is also facing salary cuts and layoffs.
This year, the salary cuts for civil servants began in Zhejiang. According to a relative of a civil servant in Zhejiang, Yao Lin, who spoke to foreign media, since 2025, civil servant salaries in the area have been reduced again. He said his relative is an ordinary section chief, and this year they saw a salary cut of 50 to 60 thousand yuan. Middle-level leaders are seeing an even bigger drop in income. Although the unit still covers social security and health insurance, the overall burden has clearly increased.

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