'Pay trend survey crucial in determining 2pc pay rise'

Civil service chief Ingrid Yeung on Wednesday said a pay trend survey that the government refers to in deciding a final pay rise was crucial in its decision-making process, even though the Executive Council's latest proposal fell short of the indicators for some staff. The blanket two percent pay rise will be backdated to April 1 if the Legislative Council gives the green light. The pay trend survey recently pointed to a 4.12 percent and 2.64 percent pay rise for senior and middle-ranking civil servants, respectively, and 1.17 percent for juniors. But Yeung told an RTHK radio show that the findings still played an important role. “The net indicators from the pay trend survey give us a very useful reference — specifically, the salary trends in the private sector, broken down by three different pay grades. What is the trend like? How is the trend moving? That is very useful,” she said. “I believe no one would want to lose this reference, and instead just pull a number out of thin air, that would be even less scientific and entirely groundless.” Yeung said the city’s 170,000 civil servants should be given a pay rise this year to recognise their efforts, maintain their morale and ensure that their salary is comparable with the private sector. Even though the SAR’s economic situation is good in the long-run and the government financial situation is improving, the minister said the city's development needs pose a big burden on the government's finances. “The [outcome of the] Middle East conflict has not become clear. The government, due to the situation there, initiated subsidies for some industries, otherwise the pressure would be passed on to the citizens. As for how things will be in the future, no one knows yet. Most importantly, it is not as though everything will be fine once it is over,” she said. “It actually reminded us that Hong Kong, as an externally oriented economy, is particularly vulnerable to such a blow. We could be severely impacted by international economic developments and financial fluctuations. So we have to be cautious in handing the government's finances.” Yeung went on to say that the relief measures were an unexpected step, which constitute an additional financial commitment. Ahead of a meeting with civil service union representatives later on Wednesday, the minister said she would analyse the current situation with them and tell them the Executive Council’s considerations, adding she believes they would understand. Edited by Tony Sabine