iPhone maker Foxconn International Holdings will no longer pay compensation to families of employees who kill themselves to discourage further suicides, China's Xinhua news agency said on Tuesday.

Xinhua cited posters in Foxconn's Shenzhen complex as saying the company had concrete evidence that some of its employees who killed themselves in a recent spate of suicides had done so in order to win compensation money for their families.

Most of the victims' families received more than 100,000 yuan ($14,640), Xinhua said.

The act is wrong. Life is precious. To prevent such tragedies, Foxconn is to cease releasing compensation other than that provided by law, Xinhua quoted the poster as saying.

Foxconn is owned by Taiwan's Hon Hai Precision Industry, which has announced two wage rises in the past two weeks for workers at the sprawling plant in Shenzhen, where some 400,000 staff assemble iPhones and other gadgets.

Hon Hai Chairman Terry Gou, Taiwan's richest man, also told shareholders on Tuesday he would limit overtime at plants in China to no more than three hours a day.

(Editing by Will Waterman)

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