Media companies like iQiYi, Youku, Tencent, Daylight Entertainment, Huace Film and TV, Linmon Pictures, Ciwen Media, Youhug Media, Hengdian World Studio and New Classics Media have released joint statements to put a cap on the salaries of actors and actresses. This is inline with the government’s move to address the increasing income gap and the perceived “money worship” among others.
As part of a crackdown, actors’ finances have come under intense scrutiny with Fan Bing Bing investigated for tax evasion, Huang Xiaoming for stock manipulation, and Zhao Wei who is facing a class action suit from investors after suffering heavy losses on a company that the actress and her husband have taken over.
Calls for a Salary Cap
The Chinese government has called for a salary cap so that the aggregated salary of all actors and guests will not exceed 40% of total production cost for any TV series, web series or movie. The salary of the main cast cannot be larger than 70% of total production cost. The companies mentioned have agreed to follow the government. It’s reported that with this initiative, an actor’s individual income would be capped at 1 million yuan per episode and 50 million yuan per season.
We have still yet to hear a celebrity react to this news. However, this will greatly affect some of the highest paid A-listers like Yang Mi and Angelababy.
NRTA Enforces Allocation Ratios for Television Dramas
Updated Feb 10, 2022: China’s National Radio and Television Administration (NRTA) has issued a development plan for Chinese TV Dramas to strictly deal with actors and related institutions who have violated laws and regulations such as tax evasion, “yin-yang contracts,” and “high remuneration.” They will be strictly enforcing an allocation ratio. Total remuneration of all actors in each TV series shall not exceed 40% of the production cost. The main actor’s remuneration shall not exceed 70% of the total remuneration.
What do you think about this move by the government?