Tencent Raises Salaries by 10%, Sets Up Housing Fund with interest-free mortgage

An email sent by Tencent CEO Mr. Ma Huateng to all its staff showed that the largest Chinese Internet company is planning an across-the-board pay raise by approximately 10%, setting up a RMB 1billion (US$ 153.2million) worth of “Tencent Housing Fund” to provide interest-free mortgage to qualified staff who are also first-time house-buyers.

Tencent to date has a total headcount of over 10,000.

According to the mail, Mr. Ma thought that rising house prices and CPI index, increasing inflation in China and some other factors all affected Tencent staff’s life quality, so the company made extra budget request for the sake of an overall pay raise. Except for the inflation, housing price in big cities such as Beijing, Shanghai and Shenzhen (where Tencent is based) is skyrocketing high, causing many intellectuals escaping from those places, which leads to the war for talent.

On the other hand, with the booming of groupbuying service, online video and e-commerce, Chinese technology companies now have a large appetite for employees. Many websites have already giving pay raise in case of poaching or for the sake of poaching competitors’ staff. Tencent’s move could also attract more talents.