FAW-VW denies reports that it will award workers with yearly bonuses of 40 times their monthly salaries

Gasgoo.com (Shanghai October 24) - Reports have begun circulating recently that FAW Volkswagen will be awarding staff with yearly salary bonuses of up to 40 times their base monthly salaries. Some reports have gone as far as putting that number as high as 55 times. However, FAW-VW denied such reports as entirely baseless.

A China Business News report appearing today quotes representatives from FAW-VW's public relations department as saying that there was no such policy, adding that the joint venture had no idea where such a rumor would have originated from. The representative added that the JV's staff is awarded bonuses on a monthly basis.

FAW-VW's policy for salary bonuses made headlines earlier this year, with news that it was awarding its workers with a yearly bonus equivalent to 27 months' salary. An assembly line worker explained that his monthly bonuses were usually twice his base salary of 3,000 yuan ($476.67). The aforementioned worker added that his monthly salaries plus bonuses this year have been twice to triple his base salary.

FAW-VW has performed very strongly this year, with it placing first in the monthly sales rankings from May to September. The JV has sold a total of 973,600 vehicles over the first three quarters of the year, representing year-on-year growth of 28.3 percent. FAW-VW has already managed to fulfill 81 percent of its sales target for the year.