The Diet on Friday enacted a ruling bloc-proposed 1.7 percent wage cut for lawmakers and a government-proposed 0.1 percent wage reduction for central government employees.

The House of Councilors passed the cut for Diet members -- from 1.324 million yen to 1.301 million yen a month from fiscal 2006 -- and an average cut of 4,000 yen in annual pay for central government workers in the current fiscal year.

The salary for Diet members had been cut by 10 percent from fiscal 2002 to 2004 amid budget constraints. But the reduction was discontinued in fiscal 2005 due to opposition from the Liberal Democratic Party.

The Democratic Party of Japan, the nation's main opposition party, had submitted a bill to the Diet to maintain the 10 percent cut. But the measure was scrapped when the House of Representatives was dissolved in August.

The DPJ later submitted a bill for a 6.8 percent reduction, but this was voted down Tuesday by the Lower House.

Meanwhile, the wage cut for government workers, which includes a 0.36 percent reduction in monthly pay and a 0.05-month hike in annual bonuses to 4.45 months' worth, was approved by the Diet in accordance with recommendations issued by the National Personnel Authority in August.

The wage cuts for government workers will save the government 5 billion yen in spending outlays.