 |
For discussion FCR(96-97)35
on 5 July 1996
ITEM FOR FINANCE COMMITTEE
CIVIL SERVICE PAY ADJUSTMENT 1996
Members are invited -
(a) to approve, with effect from 1 April 1996 -
- an increase in salary of 7.68% for the Governor and civil servants in the directorate and the upper pay bands;
- an increase in salary of 7.67% for civil servants in the middle and lower pay bands; and
- similar pay adjustments for subvented non-government organisations (NGOs);
(b) to note that supplementary provision of about $5,118 million will be required in 1996-97 for the Governor, the civil service, reimbursement to the Housing Authority, the auxiliaries and non-government organisations subvented on a deficiency grant basis; and
(c) to note that supplementary provision of about $1,292 million may be made available, on application, for non-government organisations subvented on a discretionary grant basis, having regard to the merits of each case.
Salaries of the Governor, civil servants and staff in subvented NGOs need adjustment to reflect movements in private sector salaries in the past year.
2. We propose increases in salary with effect from 1 April 1996, of 7.68% for the Governor and civil servants in the directorate and the upper pay band, and of 7.67% for those in the middle and lower pay bands. The revised civil service pay scales are at the Enclosure.
3. We also propose similar pay adjustments for staff in subvented NGOs.
4. The pay trend survey for the period 2 April 1995 to 1 April 1996 has produced the following results -
| Pay Band
| Gross Pay Trend
Indicator
(A)
| Payroll Cost of
Civil Service
Increments
(B)
| Net Pay
Trend
Indicator
(A)-(B)
|
|---|
Upper
($38,211 - $75,950 per month)
| 8.89% | 1.21% | 7.68%
| Middle
($12,460 - $38,210 per month)
| 8.85% | 1.18% | 7.67%
| Lower
(Below $12,460 per month)
| 7.92% | 1.09% | 6.83%
|
5. We propose to increase the salaries for the middle and upper pay bands in line with the net pay trend indicators (PTIs). For the lower pay band, we propose to bring the level of adjustment up to that for the middle pay band, in accordance with a recommendation of the 1988 Committee of Inquiry which was accepted by Government. For the directorate, we propose that the salary adjustment should, as usual, follow that for the upper pay band. The Governor's salary is set at 125% of the Chief Secretary's salary (D10 level).
6. The Staff Sides of the four central consultative councils have submitted a pay claim of 7.93%, in line with the movement of Consumer Price Index (A) in 1995-96 over 1994-95, across-the-board for all salary bands so as to preserve their purchasing power. We consider that, apart from the adjustment accorded to the lower pay band as set out in paragraph 5 above, there is no over-riding reason to depart from the net PTIs. The PTIs reflect what happened in the private sector in the past year. Since wage levels were under pressure in 1995 the Government cannot ignore this fact when considering the remuneration of civil servants. It is not possible, therefore, to meet the pay claims of the Staff Sides.
7. It is Government's policy to extend the annual civil service pay adjustment to subvented NGOs which generally follow civil service pay scales.
8. The cost of the proposed pay adjustment for the Governor, the civil service and subvented organisations in terms of salary and allowances1 is estimated to be $6,410 million in 1996-97, calculated as follows -
|
$ million
| |
(a)
|
Governor and civil service (excluding seconded staff and staff working in trading funds2 )
|
2,765
| |
(b)
|
Reimbursement to Housing Authority in respect of services carried out for Government
|
33
| |
(c)
|
NGOs subvented -
(i) on a deficiency grant basis3
(ii) on a discretionary grant basis4
|
2,296
1,292
| |
(d)
|
Auxiliaries
|
24
| |
Total
|
6,410
|
9. The $3,588 million for NGOs is made up as follows -
|
$ million
| |
Education (excluding universities)
|
1,199
| |
Universities
|
681
| |
Health
|
1,270
| |
Social welfare
|
273
| |
Vocational Training Council
|
112
| |
Others
|
53
| |
Total
|
3,588 |
10. We have not made any provision under individual head of expenditure for the proposed pay adjustment in the 1996-97 Estimates. Subject to Members' approval of the proposal, we shall approve under delegated authority the supplementary provision required by individual departments and NGOs. We shall offset the supplementary provision, as necessary, by deleting an equivalent amount under Head 106 Miscellaneous Services Subhead 251 Additional commitments.
11. It is not possible to quantify at this stage the exact amount of supplementary provision needed under each head of expenditure. We estimate the total supplementary provision required for the Governor, the civil service, reimbursement to the Housing Authority, the auxiliaries and organisations subvented on a deficiency grant basis at $5,118 million. As regards organisations subvented on a discretionary grant basis, Members have previously agreed that their requests for additional funds to implement salary increases similar to those for the civil service should be considered on their individual merits, having regard to the extent to which each organisation can afford to meet the cost from its own resources. We estimate the total supplementary provision required by these organisations at $1,292 million.
12. Government's policy is that annual adjustments in civil service pay should be broadly comparable to pay adjustments in the private sector. To this end, we conduct annually a survey of pay trends in the private sector over the previous year. The results of the survey, after being discounted by the payroll costs of civil service increments, provide the basis for considering the size of the annual pay adjustment. We also take into account other factors including increases in the cost of living, the state of the economy, budgetary considerations, civil service morale, staff sides' pay claims and any other relevant factors. Each year's pay adjustment is a separate and independent exercise, determined by the circumstances prevailing at the time.
13. This system of annual pay trend surveys has been in operation since 1974. The survey is conducted by the Pay Survey and Research Unit (PSRU) of the Standing Commission on Civil Service Salaries and Conditions of Service and is monitored by the Pay Trend Survey Committee, which comprises members of the Standing Commission, the Standing Committee on Disciplined Services Salaries and Conditions of Service, the staff sides of the central consultative councils and Civil Service Branch. This year the PSRU collected data from 75 Hong Kong companies from all major sectors of the economy, covering the period from 2 April 1995 to 1 April 1996. The survey covers all full-time employees with basic salaries equivalent to non-directorate staff in the civil service, divided into the following three pay bands - upper band ($38,211 per month - $75,950 per month), middle band ($12,460 per month to $38,210 month) and lower band (below $12,460 per month).
Civil Service Branch
June 1996
1. The pay adjustment will also lead to an increase in pension payments for those who retire during the year, estimated at $337 million in 1996-97.
2. Salaries and allowances for civil servants seconded to non-departmental public organiszations or working in trading funds bodies are recovered from the respective organiszatios/trading funds.
3. A deficiency grant is designed to meet the difference in full between subvented organization's income and expenditure for a programme of activities approved by Government.
4. A discretionary grant is designed to assist organizations to meet the cost, either in whole or in part, of a programme of activities approved by Government. The degree of financial assistance is entirely at Government's discretion.
Enclosure to FCR(96-97)35
|
Point
|
As at 31.3.96
$
|
Revised
w.e.f. 1.4.1996
$
|
|---|
|
49
48
47
46 (44B)
45 (44A)
44
43
42
41
40
39
38
37
36 (33C)
35 (33B)
34 (33A)
33
32
31
30
29
28
27
26
25
24
23
22
21
20
19
18
17
16
15
14
|
72,195
69,690
67,270
64,915
62,665
60,475
58,370
55,965
53,660
51,440
49,315
47,135
45,060
43,035
41,120
39,300
38,210
36,490
34,855
33,290
31,805
30,365
29,005
27,705
26,460
25,305
24,165
23,080
22,035
20,985
19,990
19,045
18,145
17,270
16,450
15,660
|
77,740
75,040
72,435
69,900
67,480
65,120
62,855
60,265
57,780
55,390
53,100
50,755
48,520
46,340
44,280
42,320
41,140
39,290
37,530
35,845
34,245
32,695
31,230
29,830
28,490
27,245
26,020
24,850
23,725
22,595
21,525
20,505
19,535
18,595
17,710
16,860
| |
13
12
11
10
9
8
7
6
5
4
3
2
1
|
14,905
14,055
13,230
12,460
11,745
11,030
10,350
9,710
9,130
8,555
8,035
7,540
7,085
|
16,050
15,135
14,245
13,415
12,650
11,880
11,145
10,455
9,835
9,215
8,655
8,120
7,630
|
| Point | As at 31.3.96
$ | Revised
w.e.f 1.4.1996
$
|
|---|
|
8
7
6
5
4
3
2
1
|
9,225
9,045
8,860
8,685
8,520
8,355
8,195
8,035
|
9,935
9,740
9,540
9,355
9,175
9,000
8,825
8,655 |
|
Point
|
As at 31.3.96
$
|
Revised
w.e.f. 1.4.1996
$
|
|---|
| 59 | 157,250 | 169,350
| | 58 | (133,990)
129,950 | (144,200)
139,950
| | 57 | (117,750)
(114,400)
111,100 | (126,800)
(123,200)
119,650
| | 56 | (101,450)
(98,550)
95,550 | (109,250)
(106,100)
102,900
| | 55 | (88,100)
(85,400)
82,850 | (94,850)
(91,950)
89,200
| | 54 | 75,950 | 81,785
| | 53 | 73,010 | 78,615
| | 52 | 70,075 | 75,455
| | 51 | 67,455 | 72,635
| | 50 | 64,950 | 69,940
| | 49 | 62,625 | 67,435
| | 48 | 60,445 | 65,085
| | 47 | 58,280 | 62,755
| | 46 | 56,165 | 60,480
| | 45 | 54,145 | 58,305
| | 44 | 52,155 | 56,160
| | 43 | 50,290 | 54,150
| | 42 | 48,450 | 52,170
| | 41 | 46,630 | 50,210
| | 40 | 44,980 | 48,435
| | 39 | 43,350 | 46,680
| | 38 | 41,765 | 44,975
| | 37 | 40,370 | 43,470
| | 36 | 39,065 | 42,065
| | 35 | 38,145 | 41,070
| |
34
33
32
31
30
29
28
27
26
25
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
|
36,775
35,255
33,775
32,290
30,840
29,420
28,015
26,620
25,460
24,700
23,970
23,255
22,725
22,155
21,575
21,025
20,440
19,870
19,325
18,790
18,255
17,740
17,240
16,815
16,255
15,765
15,285
14,840
14,390
13,970
13,560
13,145
12,755
12,380
|
39,595
37,960
36,365
34,765
33,205
31,675
30,165
28,660
27,415
26,595
25,810
25,040
24,470
23,855
23,230
22,640
22,010
21,395
20,805
20,230
19,655
19,100
18,560
18,105
17,500
16,975
16,455
15,980
15,495
15,040
14,600
14,155
13,735
13,330 |
Note : Figures in brackets represent increments.
Point
$
|
As at 31.3.96
$
|
Revised
w.e.f. 1.4.1996
$
|
|---|
| 4 | 1441,300 | 152,150
| | 3 | (117,750)
(114,400)
111,100 | (126,800)
(123,200)
119,650
| | 2 | (101,450)
(98,550)
95,550 | (109,250)
(106,100)
102,900
| | 1 | (88,100)
(85,400)
82,850 | (94,850)
(91,950)
89,200
|
Note : Figures in brackets represent increments.
|
Point
|
As at 31.3.96
$
|
Revised
w.e.f. 1.4.1996
$
|
|---|
|
38
37
36
35
34
33
32
31
30
29
28
27
26
25
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
|
75,950
73,010
70,075
67,455
64,950
62,625
60,445
58,280
56,165
54,145
52,155
50,290
48,450
46,630
44,980
43,350
41,765
40,370
39,065
38,145
36,775
35,255
33,740
32,220
30,705
29,230
27,760
26,410
25,135
23,900
22,660
21,435
20,225
18,985
17,910
17,070
16,215
15,520
|
81,785
78,615
75,455
72,635
69,940
67,435
65,085
62,755
60,480
58,305
56,160
54,150
52,170
50,210
48,435
46,680
44,975
43,470
42,065
41,070
39,595
37,960
36,330
34,690
33,060
31,470
29,890
28,435
27,065
25,735
24,400
23,080
21,775
20,440
19,285
18,380
17,460
16,710 |
|
Point
|
As at 31.3.96
$
|
Revised
w.e.f. 1.4.1996
$
|
|---|
|
27
26
25
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
|
23,180
22,520
21,840
21,215
20,670
20,095
19,540
19,030
18,520
18,015
17,485
17,005
16,530
16,060
15,585
15,115
14,650
14,190
13,745
13,285
12,830
12,425
11,915
11,585
11,260
10,930
10,630
|
24,960
24,245
23,515
22,840
22,255
21,635
21,040
20,490
19,940
19,395
18,825
18,310
17,800
17,290
16,780
16,275
15,775
15,280
14,800
14,305
13,815
13,380
12,830
12,475
12,125
11,770
11,450 |
|
Point
|
As at 31.3.96
$
|
Revised
w.e.f. 1.4.1996
$
|
|---|
|
Chief Justice
Justice of Appeal
Judge of High Court
Registrar, Supreme Court
Chief District Judge
| 188,200
165,000
157,250
129,950
129,950
| 202,650
177,650
169,350
139,950
139,950
| |
Deputy Registrar, Supreme Court
| (125,750)
(122,100)
118,500 | (135,400)
(131,500)
127,600
| | Judge of the District Courts
| (117,750)
(114,400)
111,100
| (126,800)
(123,200)
119,650
| | Chief Magistrate
| (117,750)
(114,400)
111,100
| (126,800)
(123,200)
119,650
| | Assistant Registrar, Supreme Court
| (101,450)
(98,550)
95,550
| (109,250)
(106,100)
102,900
| | Member, Lands Tribunal
| (101,450)
(98,550)
95,550
| (109,250)
(106,100)
102,900
| | Principal Presiding Officer, Labour Tribunal
| (93,350)
(90,750)
88,100
| (100,500)
(97,700)
94,850
| | Principal Adjudicator, Small Claims Tribunal
| (93,350)
(90,750)
88,100
| (100,500)
(97,700)
94,850
| | Principal Magistrate
| (93,350)
(90,750)
88,100
| (100,500)
(97,700)
94,850
| | Coroner
| (85,400)
(82,850)
80,450
| (91,950)
(89,200)
86,650
| | Presiding Officer, Labour Tribunal
| (85,400)
(82,850)
80,450
| (91,950)
(89,200)
86,650
| | Adjudicator, Small Claims Tribunal
| (85,400)
(82,850)
80,450
| (91,950)
(89,200)
86,650
| | Magistrate
| (85,400)
(82,850)
(80,450)
(74,755)
(73,010)
71,265
| (91,950)
(89,200)
(86,650)
(80,495)
(78,615)
76,740
| | Special Magistrate
| (48,605)
(47,460)
46,325
| (52,340)
(51,105)
49,885
|
Note: Figures in brackets represent increments.
|
Point
|
As at 31.3.96
$
|
Revised
w.e.f. 1.4.1996
$
|
|---|
|
D10
D9
D8
D7
D6
D5
|
188,200
177,950
157,250
152,550
141,300
133,900
|
202,650
191,600
169,350
164,250
152,150
144,200
| | D4 | (129,950)
126,100 | (139,950)
135,800
| | D3 | (117,750)
(114,400)
111,100 | (126,800)
(123,200)
119,650
| | D2 | (101,450)
(98,550)
(95,550 | (109,250)
(106,100)
102,900
| | D1 | (85,400)
(82,850)
80,450 | (91,950)
(89,200)
86,650
|
Note :1 Figures in brackets represent increments.
2 The Governor's salary is fixed at 125% of that of a D10 officer (i.e. $235,250 as at 31.3.96 and $253,300 w.e.f. 1.4.1996).
|
Point
|
As at 31.3.96
$
|
Revised
w.e.f. 1.4.1996
$
|
|---|
|
DL7
DL6
DL5
|
167,700
141,300
133,900
|
180,600
152,150
144,200
| | DL4 | (129,950)
126,100 | (139,950)
135,800
| | DL3 | (117,750)
(114,400)
111,110 | (126,800)
(123,200)
119,650
| | DL2 | (101,450)
(98,550)
95,550 | (109,250)
(106,100)
102,900
| | DL1 | (85,400)
(82,850)
80,450 | (91,950)
(89,200)
86,650
|
Note : Figures in brackets represent increments.
|
Point
|
As at 31.3.96
$
|
Revised
w.e.f. 1.4.1996
$
|
|---|
|
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
|
16,405
15,620
14,875
14,220
13,345
12,235
11,230
10,570
9,925
9,320
8,750
8,210
7,705
7,240
6,785
6,380
|
17,665
16,820
16,015
15,310
14,370
13,175
12,095
11,385
10,690
10,035
9,425
8,840
8,300
7,800
7,310
6,870 |
|
Point
|
As at 31.3.96
$
|
Revised
w.e.f. 1.4.1996
$
|
|---|
|
4
3
2
1
|
7,950
7,240
6,545
6,020
|
8,560
7,800
7,050
6,485 |
|
Point
|
As at 31.3.96
$
|
Revised
w.e.f. 1.4.1996
$
|
|---|
|
4
3
2
1
|
6,280
5,750
5,200
4,680
|
6,765
6,195
5,600
5,040 |
|
Point
|
As at 31.3.96
$
|
Revised
w.e.f. 1.4.1996
$
|
|---|
| 44 | (133,900)
129,950 | (144,200)
139,950
| | 43 | (117,750)
(114,400)
111,100
| (126,800)
(123,200)
119,650
| | 42 | (101,450)
(98,550)
95,550 | (109,250)
(106,100)
102,900
| | 41 | (88,100)
(85,400)
82,850 | (94,850)
(91,950)
89,200
| | 40 | 75,950 | 81,785
| | 39 | 73,010 | 78,615
| | 38 | 70,075 | 75,455
| | 37 | 67,455 | 72,635
| | 36 | 64,950 | 69,940
| | 35 | 62,575 | 67,380
| | 34 | 60,400 | 65,040
| | 33 | 58,225 | 62,695
| | 32 | 56,105 | 60,415
| | 31 | 53,910 | 58,050
| | 30 | 51,905 | 55,890
| | 29 | 49,875 | 53,705
| | 28 | 47,875 | 51,550
| | 27 | 45,845 | 49,365
| | 26 | 43,835 | 47,200
| | 25 | 41,840 | 45,055
| | 24 | 39,835 | 42,895
| | 23 | 38,005 | 40,920
| | 22 | 36,855 | 39,680
| | 21 | 35,160 | 37,855
| | 20 | 33,420 | 35,985
| | 19 | 31,710 | 34,140
| | 18 | 29,990 | 32,290
| | 17 | 28,265 | 30,435
| | 16 | 26,955 | 29.020
| | 15 | 25,645 | 27,610
| | 14 | 24,550 | 26,435
| | 13 | 23,470 | 25,270
| | 12 | 22,380 | 24,095
| | 11 | 21,285 | 22,920
| | 10 | 20,170 | 21,715
| | 9 | 19.085 | 20,550
| | 8 | 18,015 | 19,395
| | 7 | 17,010 | 18,315
| | 6 | 16,030 | 17,260
| | 5 | 15,035 | 16,190
| | 4 | 13,995 | 15,070
| | 3 | 12,950 | 13,945
| | 2 | 11,915 | 12,830
| | 1 | 11,040 | 11,890
|
Note : Figures in brackets represent increments.
Last Updated on 2 December 1998
|
|
|
|
