China's Wage Bill Grew too Fast in First Quarter

China’s total wage bill for state employees grew too fast in the first quarter, because of excessive bonuses, allowances and overtime pay, the official Economic Information newspaper said.

It said the total wage bill in the period was 38.7 billion yuan, an increase of 16.7 pct over the first quarter of 1986, when the bill grew a year-on-year 16.3 pct. The increase accounted for 39.6 pct of planned wage rises in all of 1987.

It said bonus payments rose a 42.6 pct, far in excess of growth in productivity. Industrial output grew a 14.1 pct in the period.

The newspaper said state allowances rose in the period by 20 pct over the corresponding 1986 quarter, with some areas and work units increasing coal and electricity allowances on their own without proper authorisation.

It said overtime pay rose a year-on-year 32 pct, with some enterprises ignoring official regulations in their payments.