CONFIDENTIAL
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Encl.3
Encl.4 (a)-(g)
GF 323
Cost of Living Allowance
14.
Officers paid on the MOD 1 scale receive a variable Cost of Living Allowance which on 1st July 1979 was $45 per month. If the proposed increase in the MOD 1 scale is approved, the Cost of Living Allowance for the quarter beginning 1st April 1979 will be reduced to nil. Payment of Cost of Living Allowance already made since April will be recovered from arrears of pay, except for $15 from 1st July, which reflects movements in the index since April 1st.
Directorate Scale
15.
The Standing Committee on Directorate Salaries and Conditions of Service undertakes its own survey of Directorate salaries in the private sector only when, as in 1977, an overall Directorate review is undertaken. The PIU does not specifically collect data on Directorate pay but that which was obtained incidental to the Master Pay Scale exercise indicated that pay of the Directorate equivalents in the private sector increased at least as much as
that indicated for the top band of the Master Pay Scale. Against this background, the Standing Committee on Directorate Salaries and Conditions of Service recommends a tapered increase ranging from 6.88% at the bottom of the Directorate Scale to 6.03% at the top, pending detailed examination during the course of the next overall review planned to commence later this year. A copy of the proposed scale is at Enclosure 3.
16.
Disciplined (Rank and File), Apprentice and other pay scales
It is proposed to increase all other scales and the pay of officers on personal scales and rates in line with the increases proposed at comparable levels in the MOD 1 Scale, Master Pay Scale and Directorate Scale. The proposed scales for the Disciplined (Rank and File) and Apprentices are shown at Enclosures 4(a) - (g).
17.
The various detailed proposals set out at paragraphs 12 - 16 above represent an increase of about 8% on the present overall Civil Service salaries bill.
18.
Changed scales will result in some increases in allowances where these are related to salaries as opposed to salary points. It is not possible to estimate the additional expenditure on allowances at this stage, but supplementary provision will be sought later if necessary.
Pensions
19.
Pension increases are no longer linked to increases in Civil Service pay scales, but to the increase in the cost of living as measured by the moving annual average of the Consumer Price Index (A). Under the agreed procedure, proposals for an increase in pensions will be submitted to the Legislative Council separately.
/Subvented
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CONFIDENTIAL #2
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