REVIEW OF REMUNERATION PACKAGE FOR MEMBERS OF THE LEGISLATURE

KEY POINTS

The Independent Commission on Remuneration for Members of the Executive Council and the Legislature of the HKSAR (the Commission) considers that work on the legislature is a form of service to the public. Members of the legislature should be adequately remunerated in recognition of the time and effort they contribute to the legislature, and be given financial assistance to pay for staff and office expenses arising from their duties. Since public funds are involved, there should be adequate transparency and accountability in the way Members use their allowance.

The Commission reviews the remuneration and reimbursement package of Members of the Legislative Council (LegCo) of the HKSAR on a regular basis.

BACKGROUND

In 1997, the Chief Executive of the HKSAR first appointed the Independent Commission on Remuneration for Members of the Executive Council and the Legislature of the HKSAR. The Commission is tasked with the objective of determining the remuneration packages for Members of the Executive Council and the Legislature of the HKSAR. The Commission is currently chaired by Mr Wong Po-yan. Members include Mr Vincent Cheng Hoi-chuen, Mr Chung Pui-lam, Dr Thomas Leung Kwok-fai and Mr Lui Tim-leung.

Remuneration and reimbursement package for Members of the second SAR LegCo

The existing rates of the various items under the remuneration and reimbursement package are as follows -

(a) a monthly remuneration of $56,870;

(b) annual provision of -

(i) an allowance of up to $1,397,470 for accountable expenses relating to office operation; and

(ii) a non-accountable allowance of up to $157,640 for entertainment and travelling.

(c) other one-off provisions of reimbursable operating expenses comprising -

(i) a setting up expenses reimbursement of up to $150,000 for each LegCo Member per LegCo term to set up their offices (up to 50% of the expenses reimbursement for re-elected Members who have claimed the expenses reimbursement in the previous LegCo term for the purposes of renovation, removal, expansion and/or setting up of additional office(s) and for the addition or replacement of equipment and furniture); and

(ii)an "information technology and communication equipment expenses reimbursement" of up to $100,000 for each LegCo Member per LegCo term. This expenses reimbursement is to be drawn after the reimbursement for setting up expenses have been fully utilised. Members who draw on this expenses reimbursement within the first LegCo term and who are re-elected in the second LegCo term will not be entitled to a fresh provision in the second LegCo term. They will only be eligible to draw on the unexpended portion under their entitlement during the first LegCo term. All Members will be eligible to the full entitlement in the third term and thereafter.

(d) a winding up expenses reimbursement comprising two parts -

(i) a fixed amount equivalent to the one-twelfth of the annual "accountable expenses reimbursement for office operation" i.e. $116,460, payable on a reimbursement basis; and

(ii) a separate amount with no pre-set ceiling, payable on the basis of the actual severance payment that needs to be paid to staff employed and in accordance with the provisions in the Employment Ordinance.

(e) the LegCo President and the President's Deputy, i.e. Chairman of the House Committee, are entitled to a monthly remuneration of $113,740 and $85,310 respectively. The LegCo President is in addition entitled to an annual entertainment expenses reimbursement of up to $157,790. They are both entitled to the operating expenses reimbursements as other LegCo Members receive.

Adjustment mechanism for the remuneration and reimbursement package

LegCo Members' remuneration, the "accountable expenses reimbursement for office operation", the allowance for "entertainment and travelling expenses", the monthly remuneration and the annual entertainment expenses reimbursement of the LegCo President, and the monthly remuneration of the President's Deputy are adjusted annually in October with reference to the movement of the Consumer Price Index (C). The relevant figures shown in paragraph 4 are the adjusted rates with effect from 1 October 2002.

Multiple memberships

LegCo Members who also sit on the Executive Council will receive two-thirds of the salary component of the LegCo remuneration package. For Members who also serve on the District Councils, they will receive the LegCo package in full (including the expenses reimbursements) with two-thirds of the honorarium for the other tier of representative government.


Serving the CommunityLast updated: October, 2003