"We will ensure that people's income increase be kept pace with economic growth and people's salary growth be kept pace with the productivity rise," he said.
He said the government will tackle the problem from three aspects:
-- Increase the salary of the low-income group and the minimum living allowances.
-- Contain the salary in the industries with overly high incomes.
-- Protect lawful income, ban illegal income and regulate excessively high income.
Exchange rate reform
Chinese Premier Wen Jiabao told Internet users Sunday the country will push forward the yuan's exchange rate reform in a prudent and gradual manner to ensure social stability.
He reiterated the principle that China should reform its currency exchange mechanism independently, gradually and controllably, calling it a point of national sovereignty.
China would stick to the market-based, managed floating exchange rate regime, which was tied to a basket of foreign currencies, he said.
"The gradual advance of the RMB exchange rate reform and a more flexible exchange rate are necessary for our socialist development. However, we oppose politicization of the issue," he said.
With the global economic downturn, China has come under increasing pressure from Western countries that allege its currency is deliberately undervalued to gain an unfair trade advantage.
Wen said that in terms of yuan's real value against the US dollar, it had gained 53 percent since the mid-1990s, and 22 percent since 2005 when China initiated its exchange rate reform. It had advanced 3.7 percent since June last year when China resumed the reform.
"A one-off and hefty appreciation of the yuan will bankrupt many export businesses with the loss of workers' jobs, especially those of rural migrant workers," he said.
Exchange rate reform should be considered in light of its impact on business performance and employment, he said.
On February 25, the central parity rate was set at 6.5757 per US dollar.