Civil Servants' Pay Freeze Extended Into Second Year

The government announced on Tuesday that the salaries of some 170,000 civil servants will be frozen for a second straight year.

The offer of a pay freeze was put to staff representatives and civil service unions last week. The employee groups had called for pay to be kept at the same level, fearing that salaries could be cut.

A government-appointed committee looking at pay trends in the private market had previously proposed cuts of up to 2.04 percent for senior civil servants, and cuts of 0.54 percent and 0.68 percent for lower- and middle-ranking staff.

“In arriving at this decision, the CE-in-Council has thoroughly considered the staff side's response to the pay offers and other relevant factors under the established annual civil service pay adjustment mechanism,” a government spokesman said on Tuesday.

The spokesman said the administration had also taken into account the state of Hong Kong’s economy, changes in the cost of living, the government’s fiscal position and morale.

The government had said earlier that while the unemployment rate in Hong Kong still stands at a high level, the state of the economy has been showing signs of recovery.

It added that the effort and contribution of civil servants in fighting the Covid-19 pandemic over the past year are also worthy of recognition.

In a letter to government workers, Secretary for the Civil Service Patrick Nip said a pay freeze is the most suitable decision, as it takes into account the actual situation of Hong Kong's economy and maintains the objectivity of the pay adjustment mechanism.

He said critics may accuse the government of deviating from procedures and giving preferential treatment to civil servants, but pointed out that government workers also took a pay freeze last year when indicators suggested a salary increase.

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