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Updated December 31st, 2021 at 06:42 IST

China slashes public officials' salaries, welfare benefits by up to 25%: Reports

After a video of a municipal govt employee went viral describing its wage drop, a media report showed that China had cut the salaries of its public officials.

Reported by: Aparna Shandilya
China
Image: AP | Image:self
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After a video of a municipal government employee went viral describing its wage drop, a media report showed that China had cut salaries of its public officials by up to 25%. An employee of the Hangzhou municipal administration has been the talk of the country after posting a video on social media complaining about a 25% pay cut.

She wrote, "Listen to this. My annual pay is going to be slashed by around 25 per cent. That’s 50,000 yuan ($7,850) less. How can I live?" according to Nikkei Aisa.

Chinese officials, according to the media agency, removed the video and linked posts after it went viral. However, no official announcement about salary cuts for public employees has been made. Similar salary deductions have also been recorded in rich regions such as Guangdong, Jiangsu, Shanghai, and Tianjin, according to the report. In Nikkei Aisa, Katsuji Nakazawa argued that a 20% pay decrease for public officials with no explanation would be a significant issue in countries other than China.

The salary of government employees in China are split into two components. The first is fixed pay, which is governed by national norms. According to Nikkei Asia, the other option is merit-based remuneration with welfare benefits. Bonuses, incentives, and other allowances and subsidies, including those connected to transportation and housing, are all part of merit-based pay and welfare benefits. They vary widely from region to region, depending on the fiscal status of each.

China's work market has changed dramatically in the last two years

According to SCMP, more Chinese are foregoing once-coveted private-sector positions in favour of a solid career in the public sector. The work market has changed dramatically in the last two years as a result of a virus-induced economic downturn and strict regulations. As the world's second-largest economy continues to be tested by the coronavirus pandemic and an ageing society, Xi Jinping has a hard task in stabilising employment next year.

According to the Society of China Analysis and Forecast (2022), an annual report published last Friday by the Chinese Academy of Social Sciences (CASS), the country must also ensure that adequate jobs are generated for young people and fresh graduates, while simultaneously addressing structural unemployment.

According to the report, China's job market has yet to rebound to pre-pandemic levels. According to official data, 12.07 million jobs were created in the first 11 months of this year, down from 12.79 million in the same period last year.

(With inputs from agencies)

Image: AP

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Published December 31st, 2021 at 06:42 IST

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