NETs are not civil servants but are paid according to the Master Pay Scale
which is subject to annual review via the Civil Servant Pay Adjustment Mechanism
data including this year's figures are available
The Pay Survey
and Research Unit conducts a
Survey over the 12 month period 2 Apr-1 Apr using
that collects data for "basic salaries and additional payments relating to cost
of living, general prosperity and company performance, general changes in market
rates, in scale increment and merit during the survey period" across
companies (146,116 employees). It uses Survey data to compile provisional 'Gross Pay Trend Indicators'.
These provisional Gross Pay Trend Indicators are presented to the Pay
Trend Survey Committee for ratification and
published on their website.
The Civil Service Bureau
publishes the 'Cost of Civil Service Increments'
defined as "The payroll cost of civil service increments incurred in [the
previous year] expressed as as a percentage of the total civil service payroll
cost of the respective salary band".
The provisional Gross Pay Trend Indicators are ratified by Pay Trend Survey Committee
and published on their
The Civil Service Bureau takes the ratified Gross Pay Trend Indicators
and subtracts the Payroll Cost of Increments (PCI) to calculate the 'Net
Pay Trend Indicators'. These are then
published on their website.
- This approach was adopted in 1989 as
the Committee of Inquiry into the 1988 Civil Service Pay Adjustment and Related
Matters and until 2019 used an annually calculated PCI. In 2019, after ten
years of increasing PCI, the government
decided to instead use the lesser of either the annually calculated PCI or
the average PCI since 1989.
The Chief Executive uses the Net Pay Trend Indicators alongside "five
other factors" to determine the final pay adjustment to be awarded: "the state
of Hong Kong's economy, the Government's fiscal position, changes in the cost of
living, the staff sides' pay claims and civil service morale". The government
also consults with "the four central consultative councils" and "the four major
service-wide staff unions/associations".
In the first week of June (Tuesday), the government Executive Council meets
to finalise details of the pay adjustment offer. The Civil Service Bureau
announces the Offers of Civil Service Pay Adjustment (backdated to April 1 of the
current year) having considered: the Pay Trend Indicators,
the state of Hong Kong's economy,
changes in the cost of living, the Government's fiscal position, the pay claims
of the staff sides and civil service morale.
In the second week of June
(Tuesday), after receiving responses from
staff sides the Executive council discusses the final terms of the offer of pay
adjustment and submits it to the LegCo
Panel on Public Service for discussion.
In the third week of June (Monday),
the Panel on Public Service discusses the pay adjustment offer and, so long as
the Panel Chairman concludes the offer has the support of the Panel, it is
passed to the LegCo Finance Committee for
final legislative approval.
Late June/Early July
Depending on the number of outstanding agenda items and the level of
filibustering undertaken by LegCo members, the submitted adjustment is discussed
and approved by LegCo in its final meetings before its summer recess e.g.
Committee Results 28 June 2016. The authorised adjustment is then announced
via Circular Memorandum to all schools together with the anticipated month of
2016-17 Pay Adjustment 102/2016.
The month of payment is typically July even if the normal monthly salary grant
cut-off date of 10
July has been missed. The adjustment is automatically included in Salaries Grant payments to schools
as are a salary payment backdated to April and any related backdated gratuity
Should filibustering result in the submitted adjustment not being discussed
and approved by LegCo in June (such as in
2017) it is held over until the first meetings of the next LegCo session
commencing in October with likely payment in November. The exact month of
payment is either the first or second month after the adjustment is approved
depending upon whether approval is forthcoming before the EDB Finance Division
processing deadline of the 7th of the month. In government schools, backdated
split into two: 1 Apr - 15 Aug paid in November and Aug 16 - 30 Nov paid in
Payments for backdated gratuity for contracts completed in August
are also made. These are either paid at the same time as backdated salary
payments or sometimes
2-4 weeks later. Schools are allowed to ignore past MPF contributions when
calculating backdating gratuity, so your backdated gratuity may be less than
expected. A full explanation is
Analysis of the
data for Pay Trend Indicators shows that:
- Until 2015, the provisional Gross Pay Trend Indicators were always ratified without
amendment. In 2015 an error was found in one company's submission to the Pay
Trend Survey leading to a small adjustment in the ratified figures.
- Until 2015, the Net Pay Trend Indicators were always the final pay adjustment awarded
regardless of any consultations/other considerations. In 2015 and 2017 the government
awarded a pay rise 0.5% higher than the Net Indicators.
- May 15-19 is the important date as on that date it is possible to calculate the
Pay Trend Indicators before they are officially released a week later.