China's Civil Service Pay System

Civil servant compensation system is essential to the whole government employee management process. It has huge impact on the stability of the society, economy and the country as well as influences on civil servants themselves. Due to the special status of civil servants with its power and responsibility over public affairs, inability of its compensation system can lead to various problems, such as malfunction of its magisterial power, low efficiency of the public services and even bribery and corruption.The current civil servant compensation system evolves from the former welfare system in the background of planned economy. Although it has been revised many times and many suggestions of scholars has been taken into consideration of, defect and urgent problems still needs to be addressed. Scientific and justified civil servant compensation system can attract talents into public services, stable the staff member of the civil servants team, and stimulate the enthusiasm and initiative of incumbent member, which will lead to optimization of governmental behavior, steady progress of the economy and the final realization of socialism harmonic society. Research on the civil servant compensation system's way of operation, inner mechanism and means of improvement has profound consequence both on theory development and practical applicationIt is analyzed in this article our country's civil servant compensation system development through institutional economics method. It is also analyzed the current civil servant compensation system's inner structure, incentive mechanism, increment mechanism, decision-making mechanism and other complementary systems. Through summarizing the western developed countries'experience on civil compensation design and management, several suggestions are proposed concerning improvement of the current civil compensation system both in theoretical level and in practical level. The article discusses the setup of supplementary system of civil compensation, with focus on the possibility of implementation of broadband pay method, setup of provident fund system and possible impact of long-term option method, in order to realize effective incentive and constraint, to inspire the initiative of civil servant and to improve the governing and management proficiency.