chapter  32
14 Pages

Changing patterns of pay systems in China

WithQi Wei

This chapter first describes the macro pay system environment in China, in which pay systems evolved after the People’s Republic of China (PRC) was established; second highlights the key areas that have been investigated in recent empirical studies on pay practices such as pay transformation, pay disparity, and the pay–performance link; and third provides a case study example of performance-related pay (PRP) in China’s public schools. The case study illustrates the pay reform introduced to the Chinese public sector particularly its public service units (PSUs) 1 in 2009 with PRP as its central theme.