The Cabinet of Prime Minister Yoshiro Mori on Tuesday endorsed a salary cut for government workers for fiscal 2000 as recommended by the National Personnel Authority, the second such reduction in two years.
For the year through March 31, the annual income for a typical state government employee will be 6,319,000 yen, down around 69,000 yen, or 1.1 percent, from the previous year. A typical employee is defined as being 40.5 years old.
The Cabinet endorsed the reduction in line with the generally declining salary of private-sector workers in the midst of the economic slump, government officials said.
This will be the first time for no additional increase, beside a regular annual increment, to be offered since the salary scale system was introduced in fiscal 1960.
Related bills to cover the recommendation will be submitted at an extraordinary Diet session to be convened Thursday, the officials said.
In August, the government's personnel board recommended a freeze on state employees' basic monthly salaries, except for the annual increment, and a cut in yearend bonuses to the equivalent of 4.75 months' salary from 4.95 months.
The authority also recommended that the allowance for those with children and other financially dependent family members be raised on average by 434 yen, or 0.12 percent per month, retroactive to April. About 40 percent of government employees are eligible for family allowances, according to authority officials.