Tsang and team to take 5.38pc pay cut as Exco eyes civil service
A pay cut of 5.38 per cent for ministers and political appointees will be announced by the government this week.
The move follows comments last month by Chief Executive Donald Tsang Yam-kuen that he and his team were willing to 'stand shoulder to shoulder with the people' amid the economic downturn.
The reduction, to take effect next month, will be the first for top officials since the severe acute respiratory syndrome outbreak in 2003.
The Executive Council is likely to discuss the findings of the administration's pay trend survey tomorrow and propose pay cuts for 18,200 civil servants in the upper bands.
Civil servants on or above point 34 on the master pay scale - HK$50,475 a month - are expected to have their pay cut by 5.38 per cent. The government is believed to favour freezing wages in the lower and middle bands.
The pay cut for ministers and political appointees could be announced as early as tomorrow.
The pay trend survey found that private sector wages had dropped by 0.17 per cent for lower-paid staff, 1.34 per cent in the middle range and 4.79 per cent for high earners.
Civil servants in the lower, middle and upper bands could face pay cuts of up to 0.96 per cent, 1.98 per cent and 5.38 per cent, respectively.
A source familiar with the issue said the administration intended to establish a certain degree of relativity between pay adjustments for political appointees and senior civil servants. 'The government decided to introduce a pay cut of 5.38 per cent for political appointees because it wants to use the pay trend survey as a yardstick in making the adjustment,' the source said.
Former chief executive Tung Chee-hwa and 14 principal officials took a pay cut of 10 per cent in 2003 to demonstrate their willingness to share the pain with the community. But the government did not explain the rationale for the size of the cut at the time, sparking claims that it was arbitrary.
Mr Tsang earns HK$371,855 a month. The salaries of the chief secretary, financial secretary and secretary for justice are HK$330,565, HK$319,385 and HK$308,585, respectively. Ministers are paid HK$298,115, while deputy ministers and their political assistants are paid from HK$134,150 to HK$223,585.
All political appointees had a pay freeze last year, while senior civil servants had a 6.3 per cent pay rise. The source said a pay adjustment mechanism for political appointees was needed in the long run.
Meanwhile, the administration will consult civil service unions about Exco's proposal for a pay cut for senior civil servants. The top policymaking body may make a final decision as early as June 23.
The government plans to table a bill in the Legislative Council on a pay cut for senior civil servants before July 8, when the last meeting of the legislative session will be held.
Another source believed the pay cuts for appointees and senior civil servants would be welcomed by the public.
