not civil servants but are paid, as for all
aided and government school teachers, according to the
Civil Service Master Pay Scale,
which is subject to annual review via the Civil Service 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'.
In mid-May, the provisional Gross Pay Trend Indicators are presented to the Pay
Trend Survey Committee for ratification and
published on their website.
The Civil Service Bureau
'Tentative Results' and the 'Payroll Cost of 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". A week later, the provisional Gross Pay Trend Indicators are ratified by Pay Trend Survey Committee
and published on their
In the first week of June, 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'. The Chief Executive uses the Net Pay Trend Indicators alongside "five
other factors" to determine the suggested 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
publishes the suggested pay award "Offer" via
press release and
commences consultation with "the four central consultative councils" and "the four major
service-wide staff unions/associations".
- 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.
In the second week of June (Tuesday),
after receiving responses from "staff
the government Executive Council meets
to finalise details of the pay adjustment offer. The Civil Service Bureau issues
a press release
announcing the pay award "Decision" 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. The final terms of the offer of pay
adjustment is then submitted to the LegCo
Panel on Public Service for discussion.
Note: the Council's schedule of meetings does not appear to be made
public, so the date of the meeting is
only known once the press release has been issued. The date of the
Panel on Public Service meeting is, however,
usually known in the first week of June when a pay adjustment item is added
to the relevant
In the third week of June,
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 where it is added to its typically long list of
outstanding items to discuss.
Late June/Early July
Depending on the number of outstanding agenda items, the submitted adjustment is discussed
and voted upon by the
LegCo Finance Committee before its summer recess
with additional meetings being scheduled, if needed, to address all agenda items. 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 1 April and any related backdated gratuity
Should the LegCo Finance Committee
be unable to discuss and vote upon the pay adjustment before its summer recess (such as in
2019) it is held over until the first meetings of the following LegCo session
commencing in late 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
10th of the month. In government schools, backdated
split into two, 1 Apr - 15 Aug and Aug 16 - 30 Nov, with the second payment
sometimes made 1 month later.
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 backdated 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.