Bank of China has reportedly moved to reduce the salary gap among its employees.

According to sources cited by Reuters, the move is in response to Beijing’s ‘common prosperity’ drive which was launched in 2021, with the bank specifically looking to narrow the gap between its employees and mid- and high-level managers.

The report notes that the bank has launched an internal "salary management system reform plan”. An inspection team operating under the Central Commission for Discipline Inspection found that the bank’s pay system had issues of “wealth inequality” in 2022.

The plan was initially implemented at Bank of China’s headquarters in the first half of 2023, and is now being rolled out to branches across the country with plans for completion within the next two years.

The plan sees employees below mid-level managers get 10-15 per cent salary increases, with similar raises for higher-level managers.

Bank of China is the fourth largest lender in the country by assets. It, along with other commercial and investment banks in China, have suffered record low profit margins as a result of disruptions to the property sector and local government debt.

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