The workers of the FAW-Volkswagen Automotive Co. were given a very generous bonus amounting to 27 months of salary. This provides us with an idea of just how big China’s auto market has become. The employees of the joint venture carmaker also got double salary for eight months this year. This news broke from an anonymous post that included an internal PowerPoint file with these data.
According to other sources, workers who recorded full attendance in 2011 got as much as 63 months of salary. FAW-VW has confirmed this report. This trend of very high pay increases in the past five years has been exceptional. FAW-VW gave double-salaries to workers for two months in 2007.
The figures continued to increase steadily. In 2008, there were five double-salary months. There were six months in 2009, seven months in 2010 and eight months in 2011. FAW-VW clarified that base monthly salary only makes up about a third of the total take-home monthly income. He also explained that the 27 months are for base monthly salary and not the total monthly income.
According to a source, a regular employee’s monthly salary base is about 3,000 yuan. It’s not clear if the double pay is included in the "take-home monthly income.” This means that a typical employee would get a take-home pay of 189,000 yuan (US$29,814) in 2011 -- equivalent to around $39,752 (pre-tax, if the tax rate is at 25%) in the U.S.