China to raise civil servant pay

China plans to raise the salaries of civil servants and employees of public institutions as the government begins to reform the country's income distribution system to narrow the gap between rich and poor, the China Daily reported.   The official said that a total of 34.7 billion yuan will be spent this year on salary increases for 120 million people, including six million Central and local government officials, 30 million employees of public institutions, and 50 million retired military servicemen and government employees.   The salary reforms "will help create a sound environment for the reform on income distribution system," said President Hu Jintao at a high-level meeting discussing equal income distribution early this month. Hu added that the reform is also necessary to build an efficient, transparent and honest government in accordance with the Civil Servants Law which came into force in January, stipulating a uniform salary system for civil servants across the country, wrote the paper.   People working in remote, underdeveloped areas will also receive a special allowance and performance-related pay. The aim of the planned raise is to improve the welfare of government employees in China's poor and rural regions, according to the Ministry of Personnel.   This is also a measure to prevent corruption among civil servants by increasing incentives.