China will raise the pensions for retired enterprise employees and increase living allowances for college students from impoverished families, against increased inflation.

The State Council decided on December 22 to raise the retired enterprise employees' pensions about 10 percent from 2010 levels, or about 140 yuan ($21.2) per person per month on average, beginning January 1, 2011.

There are more than 50 million retired enterprise employees in China. It is the sixth consecutive year China has raised the pensions for retired enterprise employees.

The State Council also decided to increase state allowances for 4.3 million needy college students from the current 2,000 yuan ($303) per student per year to 3,000 yuan ($455).

It also decided to extend tuition waivers to 4.4 million vocational school students, and provide 1,500 yuan ($227) in allowance to each of China's 4.82 million needy high school students on annual basis.