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LETTER OF 16TH APRIL 1980 TO H.E. THE

GOVERNOR UPPER END OF THE MASTER PAY SCALE/ DISCIPLINED SERVICES PAY SCALE

APPENDIX XI

16th April 1980

His Excellency Sir Murray MacLehose, G.B.E., K.C.M.G., K.C.V.O., Governor of Hong Kong

Your Excellency,

In the course of conducting our first review of civil service pay, concern was expressed to us, from several quarters, at the erosion in recent years of the differentials in pay between senior civil servants and the staff they supervise. In particular, it was suggested to us that the level of pay now afforded to senior professionals and related ranks was inadequate. However, while we felt that this was an issue deserving of our attention, we also considered that, because of the promotion and supervisory relationship between them, any adjustment to the pay scales of senior ranks on the Master Pay Scale must have regard to adjustments to the pay of the Directorate. Since we were aware that a review of directorate salaries was imminent, we undertook, in paragraph 7.5 of our Report No. 2, to have a further look at the upper end of the Master Pay Scale and the equivalent points on the Disciplined Services Pay Scale which was introduced in that Report, in the light of the findings of the Standing Committee on Directorate Salaries and Conditions of Service.

We have now been provided with the information necessary to comply with our undertaking, and in particular with the new level of the first point on the Directorate scale which the Standing Committee proposes to recommend. While this recommendation is of course subject to consideration by the Governor-in-Council and the Finance Committee of the Legislative Council, it provides a basis on which to proceed. In the event that a different level is approved than that recommended by the Standing Committee, we would also wish to reconsider our advice. Subject to this proviso, we have the honour to submit our recommendations on this issue.

That there has been an erosion in pay differentials for the more senior ranks on the Master Pay Scale and Disciplined Services Pay Scale is indisputable. This has arisen for two principal reasons. Firstly, it has been the practice in recent years to taper general pay awards.

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