China: reduction of salaries of civil servants by 30% in some provinces. Also in China they discover Mario Monti….
Something is changing in Chinese local administrations. It was recently reported that government civil servants in Guangdong, Zhejiang, Jiangsu and other places have received substantial wage cuts, with salaries dropping by as much as 30%, which has attracted public attention. In addition, the authorities asked doctors in a hospital in Zhaotong city, Yunnan province, to return their compensation for the night shifts and overtime for the past five years.
To give a practical example that circulated on Chinese social media, a state employee of the Longhua region could until yesterday earn 370 thousand Yuan per year, about 52 thousand euros (in spite of the Chinese who work for a bowl of rice .. ). Now many have discovered that their salary has dropped by around 100,000 Yuan, or 14,000 euros. In other areas there have been civil servants who have seen their salary cut by 40%.
Letter in which doctors are asked to pay back overtime.
The problem is that even in China, local governments are starting to have big budget problems. Lockdowns drove revenue and spending higher, due to the huge expense of mass testing. In addition, another important income from local administrations, that is the taxes for the sale of public land to private individuals, fell due to the real estate crisis, which made these operations no longer interesting as before.
Added to this is the difficulty of administrations in adapting to the new post-covid reality. For example, the revenues, and therefore the expenses, of the Zhejiang province grew by 10% before the covid, but in 2020 they grew only by 2.83%, so there is a need to put the budgets in order.
Then Mario Monti in the Chinese version comes into action, and it is NOT a light thing: the bonuses usually given to public employees from 40 to 50 thousand Yuan have been cut. The doctors of the hospital in the Zhaotong region were asked to return 12 million Yuan in overtime and night shifts, equal to approximately 1.7 million euros. Of course, there have been strong protests, with employees complaining that the costs of rent, housing and food have not come down, but there isn't much to be done. Even if this social tension is new for a country that, until yesterday, distributed money without too many controls. This risks having serious repercussions on the consent to the government.
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The article China: Reduction of the salaries of civil servants by 30% in some provinces. Also in China they discover Mario Monti…. comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/cina-riduzione-degli-stipendi-dei-dipendenti-pubblici-del-30-in-alcune-province-anche-in-cina-scoprono-mario-monti/ on Thu, 30 Jun 2022 20:01:08 +0000.