Hong Kong Executive Council approves 2.5 per cent pay rise for civil servants without giving in to demands for more, citing need for prudence
- Increase to cost taxpayers an extra HK$6.8 billion a year, but rate is lower than what major unions wanted
- ‘We need to handle pay adjustments of civil servants prudently as a responsible government,’ Civil Service Bureau spokesman says
Hong Kong’s key decision-making body has rejected lobbying efforts by civil service unions and formally approved a 2.5 per cent pay rise for all government workers, citing the need for fiscal prudence amid economic uncertainties.
A week after initially endorsing the increase, the Executive Council agreed on Tuesday to send the proposed pay rise, which will cost taxpayers an extra HK$6.8 billion (US$866.3 million) a year, to the legislature, where it is widely expected to pass.
The rate is far below the 7.26 per cent increase a pay trend committee proposed for senior government workers and the 4.55 per cent bump suggested for middle-rank ones, but higher than the 2.04 per cent recommended for junior civil servants.
“Considering the uncertainties in Hong Kong’s economic outlook and the expected deficit in this financial year, we need to handle pay adjustments of civil servants prudently as a responsible government,” a Civil Service Bureau spokesman said after the council meeting, the last one before the summer recess.
The government also sought to recognise the contributions of civil servants in fighting the Covid-19 pandemic, even as some from the government workers’ side criticised the pay hike for not reflecting the contributions of their colleagues during the coronavirus pandemic. They were lauded for how they “shouldered high-risk tasks on the front line and provided backup” in the Omicron-fuelled fifth wave.
“[They] have been dedicating themselves in maintaining public services. Therefore, after balancing various factors, the Chief Executive-in-Council decided to raise the civil service pay by 2.5 per cent on a flat basis,” the spokesman added.
The factors considered were pay trend indicators, the state of Hong Kong’s economy, changes in the cost of living, the government’s fiscal position and civil service morale.
The spokesman added that all four major civil service unions were informed of Exco’s decision, and the government would seek the Legislative Council’s approval of the offer as soon as possible so that the adjustment in wages could be paid to staff next month.. The pay bump takes effect from last April.
