Top 20% earns 10 times more than low-income society in China
Updated: 2014-12-24 09:31
China's income gap has widened to an alarming level, much higher than that of Russia and the US, according to the 4th Income Distribution and Enterprises Salary Reform Summit.
The average salary among the top 20 percent high-income earners is about 10.7 times higher than that of the bottom 20 percent low-income group, said an expert from the State-owned Assets Supervision and Administration Commission (SASAC). The equivalent ratio is 8.4 times in the US, 4.5 times in Russia, and 4.9 times in India.
The yawning wealth gap is likely to trigger social instability and weaken productive development, he warned.
Experts from the SASAC also said China would step up market-oriented income distribution for competitive enterprises and sectors.
Further salary system reform among State-owned enterprises is also necessary. Measures including open recruitment systems and market-oriented salary mechanisms could also help distribute earnings more evenly, it was added.