Liu Qiangdong: 10%-20% salary reduction above the deputy director

International Business News – In an email to all employees, Liu Qiangdong, the founder and chairman of the board of directors of Jingdong Group, said that he would “raise and lower” the treatment of employees and executives: on the one hand, he would gradually convert outsourced employees into Deppon’s own employees, and ensure that every Deppon employee would have “old age and medical care. “At the same time, a “housing guarantee fund” will be set up for all grassroots employees in logistics and customer service, including all Deppon employees, and Jingdong will invest tens of billions of dollars in the next ten years to provide interest-free loans for grassroots employees to buy houses; thirdly, Liu Qiangdong himself will donate 100 million RMB, and Jingdong Group and other business groups will also contribute a certain percentage of cash to provide a substantial amount of housing for grassroots employees. In addition, in order to improve the welfare of grassroots employees and to minimize the pressure on the company, the cash salary of senior managers of Jingdong Group will be reduced by 10%-20% from January 1, 2023, the higher the position, the more it will be reduced.

Liu Qiangdong said in an email that all of Jingdong’s success today cannot be separated from the efforts and persistence of its brothers. After the successful merger with Deppon, the total number of employees in the Jingdong system has exceeded 540,000, and it is believed that Jingdong can directly bring more than 1 million jobs to the country and society in the future.

“Deppon’s existing employees, whether outsourced or owned, are our brothers. Since January 1, 2023, we will gradually pay all the five insurance and one pension for more than 100,000 Deppon brothers to ensure that every Deppon brother can have old age and medical care, and provide basic protection for our brothers. In the past, although Deppon’s practice is legal and compliant, and the proportion of five insurance and one fund paid is far more than other similar companies, there are still many outsourced brothers who cannot enjoy the full amount of five insurance and one fund like their own employees. We will gradually convert our outsourcing brothers into Deppon’s own employees according to certain conditions! Let everyone be more secure!” Liu Qiangdong said in the letter.

At present, Jingdong is the only company in the industry that signs formal labor contracts with front-line logistics employees and pays “five insurance and one fund”. According to public data, Jingdong spent more than 33 billion yuan on compensation and benefits for front-line employees in the first three quarters of 2022.

“The group took out 10 billion yuan to set up a ‘housing guarantee fund’ for all the group’s grassroots employees, including all the Deppon brothers. I hope this will help all employees who have worked for more than five years, including every courier brother and customer service brother, to realize their wish to buy a house. This is a revolving interest-free loan fund, which means that in the next ten years, the group will accumulate a total investment of tens of billions of RMB.” Liu Qiangdong said in the letter.