The results of the "Pay Trend Survey", which affects the range of civil service pay increases, were released today (17th). This year's "General Pay Trend Indicators" for senior civil servants was 8.3%, mid-level civil servants were 5.58%, and junior civil servants were 3.2%.
After deducting salary increments, the net indicator of pay trends for senior civil servants is 7.26%, for intermediate civil servants 4.55% and for junior civil servants 2.04%.
Li Luanhui, chairman of the Salary Trend Investigation Committee, said that the government will take into account the five factors of Hong Kong's economic situation, government financial situation, salary adjustment requirements, living index indicators, and civil servant morale based on the "Net Salary Trend Indicator" before deciding the final adjustment. salary range.
He pointed out that the net index obtained this time is undoubtedly larger, and it is related to the rapid economic rebound of 6.4% last year, emphasizing that it is a true reflection of market conditions.
Li Luanhui pointed out that the salary level of civil servants has always been determined with reference to the private market. Otherwise, it will be difficult to attract new recruits to join the government, and it will be difficult to retain current civil servants. However, the final salary adjustment still depends on the negotiation between the government and the staff side.
The government will propose a salary increase plan later this month, which will then be discussed and finalized by the Executive Council.
Li Luanhui pointed out that this year, 160 private companies were invited to provide salary data from April 2 last year to April 1 this year. Finally, 111 companies responded, and about 130,000 sets of data were collected, and then the relevant data was obtained.
In the past two years under the epidemic, the salary trend indicator has shown a slight increase and then a fall, but in the end the government decided to freeze the salaries of civil servants, and this year the indicator has been adjusted upwards significantly. Li Luanhui believes that it reflects the rebound of the private market after the salary freeze under the epidemic.
Is the economic contraction indicator rising?
Lee: Survey retrospective non-forward looking
Private market data show that in the past year, about 80% of employees' basic salaries have been increased; 50% of employees have recorded increases in additional salaries such as bonus commissions, 3% have maintained a stable level, and less than 20% have decreased.
However, with the economy contracting by 4% in the first quarter of this year, why has the wage trend indicator soared?
Li Luanhui explained that in general, private companies decide to raise wages during the Chinese New Year in February, and the adjustment is based on last year's economic performance.
He pointed out that the salary trend survey is to collect data on the private market in the past year, and the mechanism is not to make predictions. The mechanism is carried out every year, which is sufficient to cover and reflect market conditions in different periods, and "there is no problem in long-term calculation".
High-level indicators high?
Li: It rose sharply due to market conditions
The survey found that senior employees had the highest salary increases. Li Luanhui pointed out that generally in the private market, senior employees' salary rises and falls are "reacted very quickly". When the market is not good, they also reduce their salary quickly, because their overall income is quite affected by bonuses. and other variable compensation effects.
The higher indicator this year reflects that the job market was more fluid last year, and employers were "willing to pay more bonuses to keep people."
Li Luanhui believes that the survey results have objectively, accurately and truly reflected the market situation, and the committee also has full-time staff, management and third parties.
He said there will be a meeting with different civil servants' unions next week, and the final salary increase will be subject to consultation between the unions and the government.
He emphasized that the salaries of civil servants have always been determined with reference to the private market, so salary trend indicators are very important data. If there is a large gap between the salaries of civil servants and the private market, it will make it difficult for the government to attract and retain talents.
The salary trend survey revealed that the net salary indicators of civil servants at all levels ranged from 2.04% to 7.26%.
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In the past two years, the salary has been frozen, and the net salary index last year was all negative.
The Salary Trend Survey is conducted on an annual basis to measure the changes in salary in the private sector from year to year, and calculates the "Master Pay Trend Indicator". The Government will deduct the incremental salary from the total rate to obtain the "Net Pay Trend Indicator".
In last year's salary trend survey, after deducting incremental salaries, the net indicators of salary trends for senior civil servants were -2.04%, -0.54% for intermediate civil servants, and -0.68% for low-ranking civil servants, all negative figures.
However, in the end, there was no salary reduction in accordance with the mechanism. The Chief Executive in Council decided to freeze the salaries of all civil servants for two consecutive years.
The Disciplinary Review Committee has returned to the Pay Trend Committee. The four central committees have gathered for the first time in 8 years that the net indicators of civil service pay trends are all negative.
At the end of the salary survey, the labor union advocates freezing wages: poor data, worrying about wage cuts for wage earners, civil servants to reduce labor this year?
Union urges suspension of pay survey, freezes salaries, MPs advocate pay rise to boost morale
