Chinese authorities have decided to raise the pension for corporate retirees by 10 percent to cope with the rising cost of living, according to a cabinet meeting on January 9.

The new rules took effect retroactively on January 1.

According to a press release issued after the meeting, the pension for corporate retirees in 2013 will be raised based on the basic level of their monthly pension per capita in 2012.

The Central Government pledged to establish a pension-adjusting mechanism to ensure that pensions for corporate retirees could be raised gradually.

China has raised pensions for corporate retirees since 2005. Their per-capita monthly pension has been lifted from 700 yuan ($112) in 2004 to 1,721 yuan ($277) in 2012.