(Reuters) – China has raised the wages of government workers by at least 31 percent, according to a document seen by Reuters on Tuesday, as part of efforts to combat corruption and lift the spending power of millions as the country seeks to increase consumption.
The basic salaries of some civil servants would be almost tripled, according to the document distributed to China’s cabinet and dated Jan. 12. It said the increases would be effective from Oct. 1, 2014.
The change is part of a broad effort by Beijing to reform the compensation levels of government workers to improve efficiency, reduce graft and hold officials more accountable for their own performance.
Executives at some Chinese state-owned companies, notorious for their inefficiency, suffered pay cuts this month.
“The pay hike indicates Beijing’s goal of improving the quality of life for the average Chinese,” Nomura economists said in a note. They said it was the first wage rise in eight years for central government workers.
via China raises wages for govt workers at least 31 percent – document | Reuters.
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