Employee Benefits at Chinese Retail Chain Draws Attention
Chinese retail chain Dong Lai Fat (DLF) announces ambitious employee benefits including 40-60 days annual leave, 36-hour work weeks, and minimum monthly take-home pay of 8,000 yuan, setting new standards in China’s retail industry.
The recent announcement by Yu Donglai, founder of Dong Lai Fat retail chain in China, has sparked widespread discussion about employee welfare and business ethics in China’s retail sector. Operating primarily in Henan Province’s Xuchang and Xinxiang cities, DLF has outlined groundbreaking employee benefits that challenge industry norms.
The company’s progressive employment policies include reducing weekly working hours to 36 or less, implementing store closures on Saturdays to allow staff to enjoy weekends with family, providing 40-60 days of annual leave, and ensuring minimum monthly take-home pay exceeds 8,000 yuan ($1,100+).
These benefits are particularly remarkable given the local context. Xuchang and Xinxiang rank 100th and 95th respectively among Chinese cities by GDP. The average private sector monthly salary in Henan Province is around 4,000 yuan, making DLF’s minimum salary twice the regional average.
The company’s success challenges conventional retail business models. With daily revenue averaging 51,720 yuan and annual sales exceeding 14.6 billion yuan, DLF demonstrates that prioritizing employee welfare can coexist with profitability. The company reportedly distributes 95% of its profits between management and staff, with ownership retaining just 5%.
DLF’s approach has created intense competition for positions. A recent hiring round saw over 30,000 applications for just 209 positions, a selection ratio more competitive than many civil service examinations in China. This overwhelming response reflects both the attractiveness of DLF’s employment terms and the broader desire for better working conditions in China’s retail sector.
Beyond compensation, DLF’s commitment to work-life balance represents a significant departure from China’s prevalent “996” work culture (9am to 9pm, six days per week). The company’s success in a traditional retail environment, without heavy reliance on e-commerce or livestreaming sales, suggests the viability of employee-centric business models.
The impact extends beyond direct employees. As a major local enterprise, DLF influences regional employment standards and consumer behavior. The company accounts for approximately 10% of Xuchang’s total retail sales, demonstrating that ethical employment practices can coexist with market leadership.
Yu Donglai’s vision challenges the assumption that retail success requires exploiting workers. Instead, DLF shows that investing in employee welfare can create sustainable competitive advantages through superior service quality and customer loyalty. This model offers valuable lessons for traditional industries seeking to balance profitability with social responsibility in modern China.