On 25 February 2003, the Chief Executive-in-Council decided, among others, that the Administration should in consultation with staff develop, on the basis of the existing mechanism, an improved civil service pay adjustment mechanism which should comprise the conduct of periodic pay level surveys to compare civil service pay levels with those in the private sector, the conduct of annual pay trend surveys based on an improved methodology and an effective means for implementing both upward and downward pay adjustments.

To take forward the exercise, the Civil Service Bureau (CSB) set up in April 2003 a Steering Committee comprising selected members drawn from the three advisory bodies on civil service salaries and conditions of service to provide independent and professional advice for the exercise.  A Consultative Group involving staff representatives from the staff sides of the central consultative councils and the major service-wide staff unions has also been formed to provide staff input to the exercise.

In consultation with the Steering Committee and the Consultative Group, CSB has examined the relevant policy considerations and the broad framework for the improved pay adjustment mechanism.   To keep civil service colleagues and other interested parties informed of the latest developments of the exercise, CSB issued a progress report (PDF format), together with a report summary (PDF format), on 26 November 2003.

The development of the methodology of the pay level survey and the carrying out of the field work of the survey involve a lot of technical considerations.  To ensure that the pay level survey will be carried out in a credible and professional manner, we shall develop the survey methodology and carry out the actual survey work and data analysis with professional assistance from outside consultants in two stages.

For the phase one consultancy (PDF format), in accordance with the Government's established procedures for the procurement of consultancy services, we appointed in November 2003 a consultant (Phase One Consultant) to provide technical assistance in developing a feasible and detailed survey methodology.

Following intensive discussions with the Steering Committee and the staff representatives on the Consultative Group and with technical support from the Phase One Consultant, on 4 November 2004 CSB issued a consultation paper for extensive consultation until 7 January 2005. The consultation paper contains the proposals on the pay level survey methodology as recommended by the Phase One Consultant and the CSB's proposals on the general approach for applying the survey results (Details).

Following the close of the consultation period, we had received submissions from various parties, including bureau/departmental management, staff bodies, individual civil servants, non-government organisations and members of the public. In the light of the consultation feedback (PDF format) the Phase One Consultant had further refined his recommended survey methodology. 

Taking account of the Phase One Consultant's recommendations, the outcome of the extensive consultation and other relevant considerations, the Administration has decided to conduct a pay level survey for the civil service using the methodology as recommended by the Phase One Consultant and further refined following the extensive consultation. It has also decided that with the conduct of a pay level survey in 2005, there is no need to conduct a pay trend survey for 2004/05.

For the phase two consultancy (PDF format), following the Government's established procedures for the procurement of consultancy services, we appointed in June 2005 a consultant to carry out the field work of the pay level survey in accordance with the methodology developed under the Phase One Consultancy  (Phase Two Consultant).

Taking account of the necessary work steps, the pay level survey field work will comprise the following three key stages -

Under the adopted survey methodology, a job inspection process is to be carried out with the participation of management and staff to gather detailed job-related information on the civil service benchmark jobs to facilitate identification of broadly comparable jobs in the private sector on which pay data will be collected.

In September and October 2005, the Phase Two Consultant carried out staff consultation on the approach for the job inspection process. Taking account of the consultation feedback, the Consultant finalised the job inspection approach, which is set out in his interim report. In December 2005, the Consultant commenced the job inspection process in accordance with the approach set out in the interim report. To facilitate the participation of staff in the process, a leaflet on the pay level survey is prepared for their reference. The job inspection process was completed with the support of grade/departmental management and the cooperation of staff. The outcome (PDF format) of the job inspection process provides a solid foundation as well as a transparent framework for carrying out the next stage of work of the survey, namely job matching and data collection work. The Consultant has completed the pay level survey, using 1 April 2006 as the reference date and submitted its final report in April 2007.

The Chief Executive-in-Council endorsed in March 2007 the improvements to the methodology of the pay trend surveys and ordered that the 2007 pay trend survey (covering the period 2 April 2006 to 1 April 2007) should be conducted based on the improved methodology (PDF format) which represents the outcome of months of extensive consultation with staff sides representatives.

On 24 April 2007, the Chief Executive-in-Council endorsed the regular conduct of pay level surveys at six-yearly intervals, the general framework for the conduct of these surveys, and the general framework for the application of survey findings to the civil service (Details (PDF format)).

Useful Reference

- SCS's Letter to Colleagues:

-	24 April 2007
-	13 March 2007
-	12 January 2006
-	22 December 2005
-	8 September 2005
-	8 June 2005
-	24 March 2005