Business

State to stop civil servants' pay cuts

The government will stop cutting the basic salaries of civil servants in fiscal 2004, for the first time in six years, now that the gap has lessened between salaries in the public and private sectors.

The National Personnel Authority said Friday it has recommended the Diet and Cabinet make no changes in basic monthly pay and bonuses for employees in the year to March 2005. This comes after a two years of basic pay reductions and five years of bonus cuts.

The average basic annual income, including bonuses, stands at 6.3 million yen for administrative workers.

The recommendations, if implemented, are expected to encourage local governments to end cuts to their employees’ incomes.

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