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Civil service pay policy and system

Civil service pay adjustment



Date Context Summary of development Action
17.7.98 FC FC approved the civil service pay adjustment with effect from 1 April 1998; with a pay increase of 6.03% for the upper pay band and Directorate Pay Scale Points 1 and 2 (D1 and D2) and equivalent; and 5.79% for the middle and lower pay bands. [Paper]
13.1.99 CQ Hon James TIEN raised a question on whether the Administration would, in considering the 1999 civil service pay adjustment, take into account the limitations in the methodology of the pay trend surveys (PTSs) in fully reflecting the pay trend in the private sector. [Hansard]
19.5.99 ESC ESC endorsed the proposed retention of one supernumerary post of Administrative Officer Staff Grade C (AOSGC) in the Civil Service Bureau for 18 months from 1 July 1999. In addition to taking up tasks relating to the Civil Service Reform, the AOSGC would take up the 1999 and 2000 civil service pay adjustment exercises. [Paper]
11.6.99 FC FC approved the proposed retention of one supernumerary post of AOSGC for 18 months from 1 July 1999. [Paper]
21.6.99 PS The Panel discussed the Administration's proposal of a pay freeze for 1999-2000 despite that the PTS had indicated positive growth for the middle pay band. [LegCo Brief: CSBCR/PG/4-085-001/10 Pt. 2/99](No soft copy) [Minutes]
5.00 BRIEF The Administration issued a LegCo Brief on Civil Service Pay Adjustment 2000, informing Members that having considered carefully all the relevant factors, civil service pay should be frozen in 2000-01.[LegCo Brief]
18.6.01 PS The Panel discussed the LegCo Brief on the Civil Service Pay Adjustment 2001. According to the Brief, an offer of a pay increase of 4.99% for the directorate and upper pay band and 2.38% for the middle and lower pay band, with effect from 1 April 2001, should be put to the staff sides of the four central consultative councils. [LegCo Brief and second LegCo Brief] [Follow-up Paper]
6.7.01 FC FC approved the civil service pay adjustment with effect from 1 April 2001, with a pay increase of 4.99% for the directorate and the upper pay band, and 2.38% for the middle and lower pay bands. [Paper]
18.3.02 PS The Panel discussed the civil service-related issues featuring in the 2002 Budget Speech, including the 2002 civil service pay adjustment and the progress of containing the size of the civil service. [Paper]

Panel members expressed concern about the Financial Secretary's assumption of civil service pay reduction by 4.75% in his 2002 Budget Speech before the results of the annual PTS were available, as well as the legal grounds for the Government to alter civil service pay unilaterally through legislation. [Follow-up paper]

23.5.02 PS The Panel discussed the proposals for the 2002 civil service pay adjustment in the LegCo Brief, that an offer for pay reduction of 4.42% for the directorate and the upper pay band, 1.64% for the middle pay band and 1.58% for the lower pay band, with effect from 1 October 2002, should be put to the staff sides of the four central consultative councils. The Panel noted that the draft Public Officers Pay Adjustment Bill would be provided to the staff sides for comment concurrently with the pay adjustment offer. [LegCo Brief and Follow-up paper]

The Panel met deputations and received views from representatives of major civil service councils and unions on the civil service pay adjustment.

The Panel noted the content of the following documents which were provided after the meeting to facilitate members' understanding of the subject:

  1. The 1968 Agreement between the Hong Kong Government (Now known as the Government of the Hong Kong Special Administrative Region) and the Main Staff Association (1998 Adapted version) (the 1968 Agreement). [Follow-up paper]

  2. An information note on Civil Service Pay Adjustment and Pay Trend Surveys prepared by the Research and Library Services Division. [Information Note]

  3. A fact sheet on the Hong Kong Government Service (Levy on Salaries) Ordinances, 1936 and 1937 prepared by the Research and Library Services Division. [Fact Sheet]

29.5.02 PS The Panel discussed the proposals for the 2002 Civil Service Pay Adjustment in the LegCo Brief, including the decision for pay reduction with effect from 1 October 2002 and the implementation of the pay reduction through legislation (The Public Officers Pay Adjustment Bill). [LegCo Brief]

The Panel met deputations and received views from representatives of major civil service councils and unions on the civil service pay adjustment.

Panel members considered that the Administration should introduce a piece of general enabling legislation on the civil service pay adjustment mechanism to provide the legal framework for implementing upward and downward pay adjustment. The general enabling legislation would be more appropriate than the proposed Bill which only aimed to deal with civil service pay reduction on a one-off basis.

The Panel discussed the paper on supplementary information relating to the implementation of civil service pay reduction, including the need for legislation to implement the pay reduction and the legal grounds for the Government to alter civil service pay unilaterally. [Paper] The Legal Adviser of the LegCo Secretariat also provided the Panel with his comments on the legal aspects of implementing civil service pay reduction by legislation in response to the Panel's request. [Paper]

The Panel considered the information provided by the Administration in response to Hon LEE Cheuk-yan's questions on various issues relating to the legality of the Administration's proposal to implement the pay reduction decision through legislation. [Paper]

The Panel discussed the paper on the background information on the procedure for setting up the Committee of Inquiry under the 1968 Agreement and the previous requests made by the staff side of the Senior Civil Service Council to set up such a Committee of Inquiry. [Paper]

5.6.02 COU The Administration introduced the Public Officers Pay Adjustment Bill into the LegCo and a Bills Committee was formed on 7 June 2002 to scrutinize the Bill. [Hansard "page 66"]
11.7.02 COU The Public Officers Pay Adjustment Bill was passed at the Council meeting on 11 July 2002. [Hansard "page 5"]
16.12.02 PS The Panel discussed the updated progress of the 2003 civil service pay adjustment.

After the meeting, the Administration provided supplementary information on civil service pay, including a copy of a letter from the Secretary for the Civil Service to all civil servants on "Measures to tackle the fiscal deficit" and samples of Memorandum on Conditions of Service. [Follow-up paper]

18.12.02 CQ Hon Emily LAU raised a question on whether the Administration would consider adopting arrangements similar to those of the Hospital Authority in obtaining written consent of its staff for a pay reduction, allowing civil servants a choice between accepting or rejecting pay reduction so as to avoid taking the legislative approach. [Hansard "page 92"]
25.2.03 PS The Panel discussed the proposals on 2003 civil service pay adjustment in the LegCo Brief, i.e. to restore the dollar value of all civil service pay points below Directorate Pay Scale Point 3 (D3) or equivalent to the levels as at 30 June 1997 in cash terms by two adjustments of broadly equal amount to be implemented for 1 January 2004 and 1 January 2005 respectively. For D3 and above, the pay points should be restored to the levels as at 30 June 1997 in cash terms from 1 January 2004. The Administration proposed to introduce legislation into the LegCo to implement the pay reduction. [LegCo Brief]

The Panel noted that the pay reduction proposed by the Administration was a consensus reached with the staff side after extensive consultation. [Paper and Letter]

21.5.03 COU Government introduced the Public Officers Pay Adjustment (2004/2005) Bill into the LegCo and a Bills Committee was formed on 23 May 2003 to scrutinize the Bill. [Hansard "page 78"]
10.12.03 COU The Public Officers Pay Adjustment (2004/2005) Bill was passed at the Council meeting on 10 December 2003. [Hansard "Page 87"]
15.3.04 PS The Panel discussed the paper on civil service-related issues in the 2004 Budget Speech, including civil service pay adjustment. [Paper]
29.11.04 -- The Court of Appeal handed down a judgment on the appeals of some public officers against the June and November Judgments. The Court, by a majority, allowed the appeals and proposed to make the following orders, nisi:
  1. That the applicants are entitled to the following declarations that is to say:
    (a)Section 10 of the POPAO is unconstitutional.
    (b)The applicants are not bound under their contracts of service to accept a reduction in pay.
  2. The costs of the proceedings here and below be to the applicants. [Judgment]

3.12.04 -- Announcement by the Secretary for the Civil Service (SCS) on the implementation of the civil service pay adjustments due on 1 January 2005. [Follow-up paper]
4.2.05 -- The Court of First Instance handed down a judgment on a judicial review in relation to POPA (2004/2005) Ordinance. [Judgment] [Judgment]
4.2.05 PRESS The Government announced that the Administration had decided to appeal against the Court of First Instance's judgment on a judicial review in relation to the POPA (2004/2005) Ordinance. [Press release]

SCS's transcript on the POPA (2004/2005) Ordinance. [Transcript]

5.2.05 -- Letter from SCS to civil servants on the 2004/2005 Civil Service Pay Adjustments [Letter]
21.3.05 PS At the meeting when the Panel discussed the "Civil service-related issues in the Budget Speech 2005-06", members raised concern about the estimates of the Government's contingent liabilities amounted to $9,600 million in 2006 in relation to its appeals arising from judicial reviews challenging the lawfulness of the two pieces of pay reduction legislation giving effect to the civil service pay adjustments in October 2002, January 2004 and January 2005. The Administration provided its written response to address members' concern. [Follow-up Paper][Follow-up Paper]
13.7.05--The Court of Final Appeal (CFA) handed down its judgment which ruled in favour of the Government. CFA unanimously holds that sections 4 to 6 and 10 of POPA Ordinance and sections 4 to 11 and 15 of POPA (2004-05) Ordinance are not inconsistent with Articles 100 and 103 of the Basic Law and are valid enactments of LegCo. [Judgment]
18.11.05 FC FC approved the pegging of the remuneration for the Chief Executive at 112.5% of that for the Chief Secretary for Administration with effect from 1 July 2007; and noted the financial implications of establishing an office to provide support services to former Chief Executives. [Paper]
25.6.07 PS The Panel discussed the paper on 2007-2008 civil service pay adjustment. [LegCo Brief] [LegCo Brief]
6.7.07 FC FC approved the civil service pay adjustment with effect from 1 April 2007, with a pay increase of 4.96% for the directorate and the upper pay band, and 4.62% for the middle and lower pay bands. [Paper]
16.6.08 PS The Panel discussed 2008-2009 civil service pay adjustment. [LegCo Brief] [LegCo Brief]
4.7.08 FC FC approved the civil service pay adjustment with effect from 1 April 2008, with a pay increase of 6.30% for the directorate and the upper pay band, and 5.29% for the middle and lower pay bands. [Paper]
29.6.09 PS The Panel discussed 2009-2010 civil service pay adjustment. [LegCo Brief] [LegCo Brief]

Development to date presented in background brief prepared by the Secretariat. [Background brief]

The Panel agreed to invite public views on 2009-2010 civil service pay adjustment and grade structure review.

7.7.09 PS The Panel met deputations and received views on 2009-2010 civil service pay adjustment. [Paper]
8.7.09 COU Government introduced the Public Officers Pay Adjustment Bill to the Legislative Council and a Bills Committee was formed to scrutinize the Bill. The purpose of the Bill was to adjust the pay and amounts of allowances payable to public officers with a monthly pay exceeding $48,400 by reducing them by 5.38%. [Hansard not yet available]


Bills Committee on the Public Officers Pay Adjustment Bill [Paper]

Bills Committee on the Public Officers Pay Adjustment (2004/2005) Bill [Paper]

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