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Japan: Local Civil Servants May Earn More Than National Counterparts in FY12
Source: yomiuri.co.jp
Source Date: Saturday, November 03, 2012
Focus: Institution and HR Management
Country: Japan
Created: Nov 06, 2012

The total salaries of local public servants in fiscal 2012 are projected to exceed those of national civil servants for the first time in nine years, according to a Finance Ministry estimate.

The estimate, revealed Thursday, was presented to the meeting of a subcommittee of the Fiscal System Council, which advises the minister of finance.

According to the estimate, the index for salaries of local civil servants for fiscal 2012, which ends in March 2013, stands at 106.9 against 100 for salaries of national civil servants.

Salaries of national civil servants have been cut by 7.8 percent on average for two years from fiscal 2012 to secure funds for reconstruction of areas ravaged by the March 11, 2011, earthquake and tsunami.

In response to the estimate, many members of the subcommittee called on local governments to cut the salaries of their employees. Meanwhile, the central government was urged to slash tax revenue grants to local governments.

Civil servant benefits to be cut
The government, at a Cabinet meeting Friday, adopted a legislative amendment to cut retirement allowances for federal civil servants by about 4 million yen per head.

The amendment is designed to narrow the gap between payments for private-sector employees.
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