In 34.1 percent, 21.2 percent and 18.2 percent of the counties in Henan, Shaanxi and Shandong provinces, respectively, the average monthly pay of teachers and staff in primary schools is less than 1,000 yuan ($146). The average monthly pay of teachers and staff in junior middle schools is also below 1,000 yuan ($146) in 25 percent, 20.7 percent and 18 percent of the counties in Henan, Shaanxi and Shandong provinces.

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At the 2008 sessions of the National People's Congress (NPC) and the National Committee of the Chinese People's Political Consultative Conference (CPPCC), Zhang Donghong, a CPPCC member from coastal city of Dalian in northeast China, submitted a proposal to raise the salaries of teachers up to the level of civil servants'. He pointed out that the salary level of primary and middle school teachers in Dalian was low and suggested that the issue should be addressed.

Zhang published the result of his study in the proposal. His research shows that in Dalian City, the actual pay of senior primary school teachers with 12 years of work experience was 1,200 yuan ($176), and that for senior middle school teachers with 20 years of work experience was 1,500 yuan ($220). A teacher's income was only about half that of civil servant's with similar qualifications. This caused a drain of teachers in Dalian.

Income disparities also exist between primary and middle school teachers in rural and urban areas. The report indicates that the average annual income of primary and junior middle school teachers in rural areas was only about 68.8 percent and 69.2 percent, respectively, of their counterparts in urban areas.

Low income has caused high turnover rates and teacher shortages in primary and middle schools in rural areas, especially in far-flung areas.

For a long time, China's education expenditure has been relatively low, resulting in low pay for teachers.

In 1993, the Outline of China Education Reform and Development explicitly pointed out that, "education expenditure will reach 4 percent of Gross Domestic Product (GDP) by the end of this century." Yet in 2008, the share of education in GDP reached just 2.9 percent, while the world average is 7 percent.

Local governments have shouldered an excessively large share of the education burden, so governments in economically backward regions have difficulties guaranteeing sufficient education funds.

Policy implementation

Bringing teachers' pay levels up to those of civil servants is not a new topic in China. Article 25 of the Teachers' Law of the People's Republic of China, which was implemented on January 1, 1994, stipulates that the average salary of teachers should not be lower or higher than that of the civil servants, and that it should be gradually raised.

Article 31 of the amended Law on Compulsory Education that went into force on September 1, 2006 also states that their average pay should not be lower than that of civil servants.

In March 2008, the Ministry of Human Resources and Social Security, the Ministry of Finance and the Ministry of Education jointly issued a notice on guaranteeing teachers' pay in compulsory education. The circular stressed that the average pay of teachers in compulsory education should be no lower than that of local civil servants.

Some local governments have taken specific measures to increase the pay of teachers in compulsory education.

In 2008, Hainan Province spent over 300 million yuan ($44 million) on performance-based pay for teachers. Hu Guanghui, Director of the Education Department of Hainan Province, said that Hainan increased primary and middle school teachers performance-based pay from 150 yuan ($22) to 300 yuan ($44) one year ahead of schedule. In the future, as Hainan's fiscal revenue increases, the government will raise the performance-based pay for teachers up to the level of the civil servants in the province.

The State Council's decision to increase pay for teachers in compulsory education is generally viewed as positive. Some school principals predict that performance-based pay will encourage teachers to improve their own qualifications, increase their teaching loads and discourage them from loafing or quitting.

By linking teaching loads and quality with income, performance-based pay could motivate teachers and intensify competition.

However, some teachers are skeptical of performance-based pay, as they suspect that performance will be measured by student grades or admission rates, which may not reflect their extra efforts.

Some experts also suggest that performance-based pay should not widen the income gap between teachers in different areas or schools. There should be some balancing mechanism to ensure that teachers are paid consistently across schools or regions.