Hong Kong’s civil servants are in line for record pay rise. Is it time to revamp how salary increases are determined?
- Human resources experts, bosses of small businesses say current formula places too much emphasis on private sector pay trends, does not reflect true job market situation
- However, it is ‘not unfair’ for civil servants to have a more generous salary increase this time after having their pay frozen in past two years, others say
Human resources experts and bosses of small businesses have called for a revamp of the method used to determine pay rises for Hong Kong’s 180,000 civil servants after a generous increase of up to 7.26 per cent recommended for this year raised eyebrows.
They say the current formula has placed too much emphasis on top firms and that year-end bonus or double pay – common in the private sector – should not be factored in as civil servants are already enjoying lucrative salary packages.
The latest pay trend survey, released on Wednesday, suggested salary rises starting at 2.04 per cent for junior-ranking staff to 7.26 per cent for high-earners in the civil service. If approved, the suggested 7.26 increase would be the most generous since Hong Kong returned to Chinese rule in 1997.
There is also the common practice that the government will adjust the increases for lower earners to catch up with those of the middle-rank officers. If that is to happen this year, lower earners will also be earmarked for a 4.55 per cent rise.
But the recommendations quickly drew ire from certain quarters in the community, amid the dim economic outlook and poor job market.
Hong Kong’s jobless rate surged to 5.4 per cent for the three months ended April, according to latest figures released on Thursday.
The city’s gross domestic product (GDP) shrank 4 per cent year on year in the first quarter under the combined effects of slower global demand, disruptions in cross-border trade and the coronavirus pandemic.
