Japan's main ruling and opposition parties are finalizing details of a plan to slash the salaries of national public employees.

The policy chiefs of the ruling Democratic Party and the opposition Liberal Democratic and New Komeito parties appear to have succeeded in ironing out their differences over the cuts.

Trimming of government salaries and reducing the number of seats in the Lower House of the Diet are viewed as essential for advancing social security and tax reform. Prime Minister Yoshihiko Noda has described the reforms as urgent.

The government had earlier rejected an average 0.23 percent cut recommended by the National Personnel Authority for fiscal 2011. Instead, it submitted a bill for an average cut of 7.8 percent through fiscal 2013.

But the opposition parties wanted an additional 0.23 percent cut.

They said the added cut would further reduce overall payroll costs including those for retirement and pensions.

The Democratic Party has drafted a new bill calling for the smaller wage cut along with the 7.8 percent cut over a period of 2 years.

The opposition parties are expected to agree to the plan.

News credit: http://www3.nhk.or.jp/daily/english/20120125_19.html

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