The Chief Executive in Council (CE-in-Council) decided at the meeting today that the pay for civil servants in the upper, middle and lower salary bands and the directorate for 2020-21 would be frozen with retrospective effect from 1 April 2020. I know that you may be disappointed with the decision.
In arriving at this decision, the CE-in-Council has, as in the past, fully and thoroughly considered all the relevant factors under the annual civil service pay adjustment mechanism, including the net pay trend indicators (PTIs); the state of Hong Kong's economy; changes in the cost of living; the Government's fiscal position; the pay claims of the staff side; and civil service morale.
I understand that the decision may not fully meet the expectations of all our colleagues, especially when the net PTIs and the headline Composite Consumer Price Index are both in the positive this year. However, we must also understand that the economic situation is austere in Hong Kong and the Government is under heavy financial pressure. The CE-in-Council must fully consider and carefully balance all the relevant factors in deciding on the annual civil service pay adjustment.
Hong Kong is facing many challenges. Our colleagues in various bureaux and departments are doing their best to fight the COVID-19 pandemic, and at the same time tackling social violence which is showing signs of revival. In order that civil servants and our society can focus their attention and efforts on helping Hong Kong overcome the epidemic as soon as possible, the arrangement on the pay adjustment procedure has been adjusted this year in that we sought the CE-in-Council’s decision right after we had received the staff side’s pay claims. But colleagues can rest assured that we, as always, have listened attentively to the views of the staff side in the course of the adjustment exercise, and I have personally met the representatives of the staff side. All the staff side’s claims and justifications for pay adjustment have been truthfully reflected to the CE‑in-Council, so that they could take all the relevant factors into consideration in a holistic manner before reaching a well-informed decision.
The Chief Executive and all Members of the Executive Council give full recognition to our colleagues for their hard work and contribution in the past year, especially your efforts in dealing with the social events and fighting the COVID-19 pandemic. A pay freeze for the entire civil service is definitely not an easy decision to make. As such, the Chief Executive and Members of the Executive Council would like to convey their sincere gratitude and appreciation to all colleagues who have remained dedicated and devoted to your duties.
At this difficult juncture, I hope that our colleagues could understand the decision on the civil service pay freeze. Let us tide over such difficult times with the general community in Hong Kong through concerted efforts. I believe that all of you, under the leadership of the Chief Executive, will continue to stay committed to your duties with professionalism and rise to the challenges ahead.