Ex-soldiers will receive more cash after the government on Monday increased subsidies, according to a circular jointly issued by the civil affairs and finance ministries.
Under the new policy, which takes effect on Oct. 1, central government subsidies will rise 15 percent for handicapped soldiers and militia, as well as families of dead soldiers. Central government will also pay an additional 600 yuan (98 U.S. dollars) to ex-soldiers who have returned to their rural homes.
Central and local governments will share an increase of additional subsidies, from the current 285 yuan (46 U.S. dollars) to 320 yuan (52 U.S. dollars) each month to ex-soldiers who receive pensions.
Subsidies for handicapped soldiers who are disabled during war will be increased to 43,630 yuan (7,152 U.S. dollars), up 5,690 yuan (932 U.S. dollars). Payments will rise to 42,250 yuan (6,926 U.S. dollars), up 5,510 yuan (903 U.S.dollars), for those handicapped during non-combat duties. The subsidy will be 40,870 yuan (670 U.S. dollars), up 5,330 yuan (873 U.S. dollars), for those who have fallen ill during service.
In addition, the new policies have raised subsidies for families of people who have been awarded as "revolutionary martyrs" to 13,860 yuan (2,272 U.S. dollars).
For former Red Army members who have returned to their villages, they will see their government subsidies rise to 30,250 yuan (4,960 U.S. dollars) and 13,650 yuan (2,237 U.S. dollars). The lower figure is for those who leave the army early.
Official figures show that since the late 1970s, when China launched its reform and opening-up drive, the government has increased subsidies for ex-service people on 23 occasions. This year, the government will pay 30.2 billion yuan (4.9 billion U.S. dollars) as subsidies for former soldiers.