China has cut down the salaries of its public servants by up to 25 per cent, a media report revealed after a video of a municipal government employee went viral "describing its pay cut."
Katsuji Nakazawa wrote in Nikkei Aisa that a 20 per cent cut in public servants' salaries with no explanation would be a huge issue in countries other than China.
An employee of the Hangzhou municipal government has become the talk of the land in the country, as she posted a video on social media speaking about her pay cut by around 25 per cent.
"Listen to this," she wrote. "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?" as per Nikkei Aisa.
After the video went viral, Chinese authorities deleted it and related posts, as per Nikkei Asia.
However, no official announcement has been made about reductions in public servants' pay. But similar sharp pay cuts in affluent regions such as Guangdong, Jiangsu, Shanghai, and Tianjin have also come to light,it reported.
In China, public servants' salaries are divided into two parts. One is fixed pay, for which there are uniform national standards. The other is merit-based pay plus welfare benefits, Nikkei Asia reported.
Merit-based pay and welfare benefits involve bonuses, incentives, and various allowances and subsidies, including those related to transportation and housing. They differ greatly from region to region depending on each region's fiscal situation.
One Chinese source predicted that the move to cut the pay of not only public servants but all workers in the public sector will spread across the country. Employees at state-owned companies who have enjoyed high pay will be no exception, Nikkei Asia further reported.
( With inputs from ANI )
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