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2008-09 civil service pay adjustment

A spokesman for the Civil Service Bureau (CSB) announced today (June 3) that the following pay offers have been made to the staff sides of the four central consultative councils in the civil service:

(a) a pay increase of 6.30% for directorate and civil servants in the upper salary band with effect from April 1, 2008;

(b) a pay increase of 5.29% for civil servants in the middle salary band with effect from April 1, 2008; and

(c) a pay increase of 5.29% for civil servants in the lower salary band with effect from April 1, 2008.

The above pay offers were decided by the Chief Executive-in-Council (CE-in-Council) having regard to: the net pay trend indicators (PTIs) as derived from the findings of the recently completed Pay Trend Survey(PTS), the state of the economy, the Government's fiscal position, changes in the cost of living, the staff sides' pay claims, and the state of civil service morale.

"The pay offers for directorate officers and civil servants in the upper salary band, and for those in the middle salary band are the same as the relevant net PTI."

"The pay offer for civil servants in the lower salary band is brought up to the net PTI for the middle salary band. This is because the CE-in-Council has decided to invoke the 'bring-up' arrangement," the spokesman said.

The "bring-up" arrangement was introduced in 1989, under which the pay adjustment rate for civil servants in the lower salary band will, subject to the decision of the CE-in-Council, be brought up to the net PTI for the middle salary band if the net PTI for the former is lower than that for the latter.

"Whether or not the 'bring-up' arrangement should be invoked is a decision made by the CE-in-Council each year, in the context of the annual civil service pay adjustment exercise. That it is invoked for 2008-09 does not imply that it will necessarily be applied in future years, and the staff sides should have no expectation that it will be," the spokesman said.

"The CE-in-Council's pay offers for 2008-09 are made on the clear understanding that should the next (or subsequent) six-yearly pay level survey reveal a differential of more than plus/minus 5% in the pay (inclusive of any embedded 'bring up' portion) between civil servants of a particular job level and their counterparts in the private sector, then adjustment (either upward or downward) would be made to bring the pay for the concerned civil servants back to the limit (upper or lower as appropriate) of the plus/minus 5% acceptable range, in accordance with the established framework," the spokesman continued.

The net PTI for each salary band is obtained by deducting the cost of increments paid to civil servants in 2007-08 from the relevant gross PTI derived from the 2008 PTS. The net PTIs for the three salary bands are as follows:

Salary Band

Net PTIs

Upper
(monthly salary from $45,971 - $91,765)

6.30%

Middle
(monthly salary from $14,990 - $45,970)

5.29%

Lower
(monthly salary below $14,990)

3.90%

The CE-in-Council will consider the response of the staff sides to the pay offers, and then make a final decision on the 2008-09 civil service pay adjustment. The Administration will then make a submission to the Finance Committee of the Legislative Council for approval.

Tuesday, June 3, 2008

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