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China – Jobs for life less popular following employee benefit cuts

02 September 2014

Public service jobs, formerly considered an ‘iron rice bowl’ or a guaranteed job for life, have become less popular following the government’s cut down on the benefits associated with the positions, reports wantchinatimes.com.

Until recently public positions were considered top jobs in China, offering many hidden benefits. A staff member in a public agency could enjoy big meals and good housing at a lower cost than people in other occupations. Their pension plans also allowed them to receive a monthly payment equivalent to 80% of their monthly salary after they retire. Public servants were also eligible to apply for travelling and subsistence subsidies.

The hidden benefits have been revoked one by one, however, since President Xi’s administration took office in 2012. Frills, such as bonuses, gift boxes, and festival pastries have also been cut.

According to a survey by the state-run Beijing News, up to 90% of Chinese public servants said their income has been decreasing year-on-year. Some have even resigned for better offers in the private sector.

Despite complaints from public servants, the Politburo of the Communist Party has approved reforms that look to adjust the payment system for employees at state-owned businesses, as a move to expand its anti-bribery practices.