Salaried workers at Bolivian state agencies, the military, police and in the private sector are to get an extra month's pay as a Christmas bonus.

President Evo Morales issued a decree for the extra cash on Wednesday.

Bolivian law already requires that salaried workers get a month's pay as a December bonus, so they will now triple their pay for the month.

Mr Morales said he made the surprise announcement as his government aims to reduce poverty and more equally distribute wealth. Bolivia is one of South America's poorest nations.

"The economy is good and the country's growth should return to the workers with a double Christmas bonus," Mr Morales said during a meeting with trade union leaders.

But Bolivia's Federation of Private Companies bitterly objected, calling the decree "politicking" and claiming it "bodes terribly for future investment."

Mr Morales has nationalised public services including telecommunications and the electricity grid, has renegotiated natural resource extraction deals, but has largely left the private sector intact.

However he has insisted that annual wage increases keep pace with inflation - now at 6.4 per cent - which has riled up the reactionary opposition.

Senator Marcelo Antezana called the bonus decree "demagogic" and predicted hysterically that it would boost inflation.

Mr Morale's decree requires that the extra monthly wage be paid every year that the country's GDP grows by 4.5 per cent.