Civil servants still eligible for raises despite pay freeze

Ayra Wang

The government will face an additional HK$2.3 billion expenditure on personal emoluments in the next fiscal year, despite a salary freeze for all civil servants and post cuts, as the incremental pay-rise system remained unchanged.

This follows the announcement of a pay freeze impacting a broad spectrum of public officials, including the chief executive, politically appointed officials, nonofficial Executive Council members, civil servants, Legislative Council members, the Judiciary and district council members.

However, this means only public officials without pay scales, such as politically appointed officials, legislators, and judicial officers, will see their salaries freeze, while civil servants below the top of their pay scales can still receive wage increases.

Ronick Chan Chun-ying, chairman of the Legco's finance committee, suggested that the government may have retained the increment system to avoid fundamentally altering the civil service pay structure.

He said only employees meeting performance standards should receive raises

"This approach encourages employees to strive for excellence," Chan said.

Chan also said the budget cuts, totaling 7 percent by 2027-28, were more aggressive than expected and aligned with the need to address the fiscal deficit.

He said no objections to the pay freeze for legislators, calling it a reflection of public officials' willingness to share the burden during tough times.

Financial Secretary Paul Chan Mo-po addressed public concerns during a TV program yesterday when a caller from a nongovernmental organization expressed worries about potential pay freezes in their sector.

Chan said the decision to freeze salaries was made after considering strong public sentiment and the need for fiscal consolidation.

Another caller, a 63-year-old individual, questioned why the increment system remained unchanged while seniors faced adjustments to the HK$2 public transport fare concession scheme.

Chan said pay freeze factored in two consecutive years of economic growth, private sector pay increases and the need for fiscal discipline, while civil service increments were tied to annual performance reviews.