CONFIDENTIAL

機密

9.

The Senior Civil Service Council is not concerned with MOD 1 salaries, but the PIU also reports private sector pay trends for these salaries. An analysis of the date indicates the following

MOD 1

Percentage increase

1978-79

1977-78 adjustment Total

+9.78%

+0.40%

+10.18%

Cost of living changes

10.

The cost of living in the period 1st April 1978 to 31st March 1979, as measured by the moving annual average of the following indices, has changed as follows -

Index

Household expenditure range

CPI (A)

$ 900

$1,499

CPI(B)

$1,500

$2,999

Hang Seng

$3,000

$9,000

Increase

+6.62%

+6.61%

+6.70%

Encl.1

Encl.2

However, since 1974 when the PIU first produced evidence of the movement of pay in the private sector, movement in the cost of living has not been a criterion in reviewing Civil Service pay levels.

Proposals

11.

It is proposed that a service-wide pay increase should now be made, adjusting scales to the nearest $5, to reflect as closely as practicable the evidence of private sector overall pay movements shown at paragraphs 8 and 9 above.

Master Pay Scale

12.

It is proposed that the Master Pay Scale be revised upwards to give a tapered increase from 9.09% at the bottom point of the bottom band to 6.93% at the top band. The simple average of the increases at each Master Pay Scale point is 7.75% compared with the average of 7.72% for the private sector overall. A copy of the proposed scale is at Enclosure 1.

MOD 1 Pay Scale

13.

Private sector evidence indicates an increase of 10.18% after including the adjustment for previous year understatement. This is a somewhat bigger increase compared with Master Pay Scale staff than in previous years. Increases ranging between 10.61% at the bottom of the MOD 1 scale to 10.07% at the top are proposed. A copy of the scale is at Enclosure 2. The simple average of the percentage increases is 10.31%.

/Cost of

CONFIDENTIAL 機密

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