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Following is a question by the Hon Emily Lau and an oral reply by the Secretary for the Civil Service, Miss Denise Yue, on normal conversion arrangement for Starting Salaries Survey in the Legislative Council today (June 6):
Question:
On the April 1, 2000, the Executive Authorities adjusted the starting salaries of civilian and disciplined grades downwards by one to six pay points. On the basis of the findings of a survey of the starting salaries in the private sector, the Executive Authorities decided on the 15th of last month to adjust the starting salaries of some civilian grades and most disciplined grades upwards by one to five pay points. As for serving civil servants appointed on or after April 1, 2000, their salaries will be brought up to the same level as the new starting salaries if they are below the new starting salaries for the respective ranks; and their salaries will be increased by one pay point, subject to the maximum pay point of their respective ranks, if they are the same or higher than the new starting salaries for their respective ranks. In this connection, will the Executive Authorities inform this Council:
(a) whether members of the public have reflected to them the view that the new starting salaries for certain grades are too high or too low; if so, of the details;
(b) given that serving civil servants appointed on or after April 1, 2000 will only be given an additional pay point even though their length of service is as long as seven years, whether the authorities have reviewed if this arrangement is fair to them; and
(c) whether the authorities will, in the light of the length of service of these serving civil servants, review their salaries afresh; if not, of the reasons for that?
Reply:
Madam President,
As regards part (a) of the question, the Civil Service Bureau has so far received around ten written comments from members of the public (excluding civil servants) on civil service starting salaries. Their views, which are not supported by detailed rationales, are that the starting salaries for some grades including teachers, engineers, liaison officers and administrative officers are higher than those offered in the market.
The civil service starting salaries are determined in accordance with the educational qualification method as recommended by the Standing Commission on Civil Service Salaries and Conditions of Service (hereafter refer to as "Standing Commission"). Briefly, the benchmark salary for each qualification group (QG) is determined having regard to the entry pay for jobs in the private sector requiring similar qualifications. The starting salaries for ranks within each QG are in general the same as the relevant benchmark. For those grades with special job requirements or recruitment difficulties, the starting salaries of their entry ranks are set at one or a few points higher than the relevant benchmark. The recommended starting salaries for the civil service are determined in accordance with the established mechanism. They are based on the results of the 2006 Starting Salaries Survey (SSS) and the application packages endorsed by the Chief Executive-in-Council. Our recommended starting salaries revisions are supported by the Standing Commission and the Standing Committee on Disciplined Services Salaries and Conditions of Service (hereafter referred to as "Disciplined Services Committee"). The staff sides of the four central consultative councils and the representatives of the four service-wide civil service unions also consider our recommendations acceptable.
As regards parts (b) and (c) of the question, i.e. the adoption of the normal conversion arrangement for affected serving civil servants, I would like to provide the following consolidated reply.
Madam President, the last SSS was conducted in 1999, which resulted in the lowering of starting salaries from one to at most six pay points for a majority of the entry ranks took effect on April 1, 2000. The starting pay for the remaining entry ranks remained unchanged at that time. In the light of the results of the recently-completed 2006 SSS and the application packages, the Government decided to increase the starting salaries for certain ranks by one to at most five pay points, while the starting salaries for the rest would remain unchanged. If our recommendations are approved by the Establishment Subcommittee and the Finance Committee, new recruits to those ranks with increase in starting salaries may be paid higher than serving civil servants appointed on or after April 1, 2000 at lower starting salaries. From the point of view of staff management, we need to reasonably and suitably adjust the salaries for affected serving staff.
SSSs were conducted from time to time in the past. There is a span of ten years between the 1999 SSS and 1989 SSS, and another span of seven years between the 1999 SSS and the 2006 SSS. In view of the rapidly changing landscape of the private sector in respect of starting salaries, a SSS will be conducted periodically at three-yearly interval starting from 2006. That a SSS will be conducted regularly every three years - rather than on an irregular basis with considerable span between two SSSs - is an important component of the improved civil service pay adjustment mechanism. This is supported by the Standing Commission, the Disciplined Services Committee, the staff sides representatives of the four central consultative councils and the four service-wide staff unions.
In the light of the above-mentioned fundamental change, we have to carefully consider and balance the interests and concerns of the public at large and those of the affected serving civil servants before deciding what conversion arrangement should be adopted. While the 2006 SSS reveals that the starting salaries for some grades should be increased, we are not in a position to foretell what the results of the 2009 SSS, the 2012 SSS and the SSSs to be conducted every three years thereafter will be. There are possibilities that the results will indicate a need for either upward adjustment, downward adjustment or remained unchanged.
In accordance with the established practice, serving civil servants will retain their existing, higher pay when a SSS results in the lowering of starting salaries. If, having regard to the 2006 SSS and its application packages, the Government increased the salaries for affected serving civil servants in full, i.e.including all the annual increments, omitted points/incremental jumps (if any), and incremental credits for relevant years of experience (if any) they have earned, and in the event that the results of the 2009 or 2012 SSSs showed that the starting salaries should be adjusted downwards and in accordance with established practices, the pay of serving officers will not be affected, the public will call such arrangement into question and will consider this against the principle of evenhandedness. Adopting full conversion this time round without any risk of downward adjustment in future (as affected serving civil servants are shielded from the risk of downward adjustment in pay arising from future SSSs) would give rise to public outcry, as this goes against the principle of even-handedness. The public would also question whether this is a prudent use of public monies.
Having regard to the above-mentioned considerations, we consider that the normal conversion arrangement strikes a right balance between the legitimate concern of the public for even-handedness in treatment and prudent use of public monies on the one hand, and the need for reasonably and suitably increasing the salaries for affected serving civil servants on the other. The normal conversion arrangement ensures that serving civil servants would be protected against downward adjustments to starting salaries arising from a SSS, while providing suitable upward adjustment to pay (when a SSS results in the increase in starting salaries) so that the pay for affected serving civil servants will be equal to the new starting salaries or one point higher than their existing salaries. We consider that the normal conversion arrangement puts in place a fair and reasonable mechanism for dealing with the possible ups and downs in starting salaries arising from each SSS to be conducted every three years.
Madam President, the normal conversion arrangement has been adopted for a long time. Since its inception in 1979, the Standing Commission has been recommending such a conversion arrangement. For the current SSS, it re-affirms that the normal conversion arrangement should be applied to affected serving civil servants. The staff sides of the four central consultative councils and the representatives of the four service-wide civil service unions also consider the normal conversion arrangement acceptable.
Under the normal conversion arrangement, some serving civil servants may be paid on par with new recruits, or one point higher than their existing salaries. We appreciate that some of the serving civil servants may consider that such an arrangement does not fully take into account their experience and years of service.
I would like to take this opportunity to emphasise once again that we do value the contribution made by serving civil servants. Pay, while important, is not the sole factor reflecting the experience and years of service of serving civil servants. Serving civil servants, while they may be paid on par with or slightly higher than new recruits, would be in a far more advantageous position when it comes to consideration for promotion and acting appointment. Furthermore, civil service fringe benefits, such as the Government's contribution rate for civil service provident fund and, in the case of the disciplined services grades, the allocation of departmental quarters, are linked to years of service. While serving civil servants may be paid on par with new recruits, they are in a more favourable position than new recruits in terms of promotion opportunities and the provision of fringe benefits.
Thank you.
Ends/Wednesday, June 6, 2007
Issued at HKT 14:05
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