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Matthew Cheng

Hong Kong’s civil service chief has pledged to deliver a “reasonable and attractive” pay adjustment once the economy and public finances improve, following the legislature’s approval of a flat 2 per cent pay rise for civil servants this year.
The Legislative Council’s finance committee on Friday scrutinised HK$6 billion (US$765 million) in spending for the annual pay adjustment for civil servants and associated provisions for subvented organisations, after an earlier decision by the city’s top decision-making Executive Council.
Several lawmakers criticised the increase, which took effect retroactively from April, saying it fell short of the pay trend survey’s recommendation and the unions’ demands.
The survey released last month proposed increases of 4.12 per cent for senior civil servants, 2.64 per cent for middle-ranking staff and 1.17 per cent for junior employees.
Lawmaker Aaron Bok Kwok-ming said the adjustment lagged cumulative inflation, voicing concern that it would damage the civil service’s attractiveness.
“The pay adjustment affects not only the civil servants but also teachers, social workers, and employees of subvented organisations,” Bok said. “Suppressing the pay rise will dampen domestic demand and ultimately harm the local economy.”

Fellow lawmaker Lam Chun-sing cautioned that placing too much emphasis on public perception in pay adjustments could lead to unnecessary confrontation between civil servants and the public.
Last November’s Tai Po fire, which exposed some departments’ failure to exercise oversight, prompted calls for a smaller pay rise this year.
“It seems like the lower the pay rise, the happier the residents will be. Otherwise, they will be unhappy,” Lam said, describing the sentiment as undesirable.
Legislator Kingsley Wong Kwok urged the government to make up the salary shortfall when public finances improve to keep pace with inflation.
In response, Secretary for Civil Service Ingrid Yeung Ho Poi-yan rejected suggestions that pay increments were suppressed, stressing the need to maintain prudent use of public money amid rising geopolitical uncertainties.
“If Hong Kong’s overall condition improves in the future, we must offer a pay adjustment that is reasonable, motivating to morale, sufficiently attractive and able to retain staff,” Yeung said.
She reiterated that the pay trend survey was only one of six factors the Exco considered when determining annual civil service pay adjustments. Other factors include the state of the economy, the cost of living, the government’s fiscal position, staff pay claims and civil service morale.
Separately, the finance committee gave the green light to inject HK$4.6 billion into the Post Office Trading Fund to sustain Hongkong Post’s operations for the next three years.

Self-financing since 1995, the government-owned postal service provider has recorded eight consecutive annual deficits, accumulating nearly HK$2.9 billion in losses.
Secretary for Commerce and Economic Development Algernon Yau Ying-wah said the government would put forward a reform proposal by 2028, but stopped short of providing a specific timetable or further details.
He expressed openness to a slew of suggestions from lawmakers, including converting Hongkong Post to a government department, raising postal fees, and extending post office operating hours.


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Hong Kong society

Hong Kong civil service chief vows ‘attractive’ pay rise once economy improves

Secretary for Civil Service Ingrid Yeung Ho Poi-yan has rejected suggestions that public servant pay rises are being suppressed. Photo: Dickson Lee

Lawmaker Aaron Bok has voiced concern that the 2 per cent flat increase will damage the civil service’s attractiveness. Photo: Elson Li

A post office branch in Causeway Bay. Hongkong Post has recorded eight consecutive annual losses since the 2017-18 financial year. Photo: Jonathan Wong

Hong Kong civil servants in line for pay rises of up to 4.12%, survey shows

The pay trend survey is one of six factors the Executive Council considers when determining annual pay adjustments for civil servants. Photo: Karma Lo

Ingrid Yeung has announced plans to introduce a more rigorous performance appraisal system in October. Photo: Karma Lo

Union warns reduced civil servant pay rise after Tai Po fire would ‘bow to populism’

The government froze civil servants’ pay last year. Photo: Dickson Lee

Hong Kong has about 170,000 civil servants. Photo: Edmond So

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Hong Kong

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Ingrid Yeung stresses prudent use of public money after some lawmakers say flat 2 per cent pay rise falls short of pay trends, union demands


Ingrid Yeung stresses prudent use of public money after some lawmakers say flat 2 per cent pay rise falls short of pay trends, union demands.


Hong Kong civil service chief vows ‘attractive’ pay rise once economy improves

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Ingrid Yeung stresses prudent use of public money after some lawmakers say flat 2 per cent pay rise falls short of pay trends, union demands

Ingrid Yeung stresses prudent use of public money after some lawmakers say flat 2 per cent pay rise falls short of pay trends, union demands