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Millions of government workers in China to get 60% pay raise

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Staff writer ▼ | January 22, 2015
China's 39 million civil servants and public workers will get a pay raise of at least 60% of their base salaries as part of pension plan overhaul.
China workers employees
Huge   39 million civil servants and public workers
Hu Xiaoyi, a vice minister of human resources and social security, said at a press conference Tuesday that government agencies and public institutions have been notified of detailed plans for the salary increase.

The pay raise "will make sure that the overall incomes for most of these workers will not decrease after the reform, and some of them could actually earn a bit more," he said.

Hu did not provide details of the plan, which will cover civil servants and public workers, such as teachers and doctors.

Copies of documents obtained by Caixin show that top civil servants, including President Xi Jinping and Premier Li Keqiang, will see their monthly base salaries rise to 11,385 yuan from 7,020 yuan (to $1,833 from $1,130), starting in October. The base salaries of the lowest civil servants would more than double to 1,320 yuan. It is unclear if the plans Caixin saw are final.

Data from the State Administration of Civil Service show that China had nearly 7.2 million civil servants and more than 31.5 million public-sector workers employed by institutions such as schools and hospitals at the end of 2013.

Those workers do not contribute to their pension fund, meaning taxpayers fund their retirements.