~No

6

31

20.

(d) Our aim should be, as far as possible, within the

limits prescribed by the principl、 noted above, to maintain an oven relationship of cost of living allowances to basic salaries, avoiding any irregular relative differentiations.

(e) In general, the increases should be the minimum,

rather than the average, of what appeared to be necessary to enable the officers concerned to maintain an appropriate standard of living on the austerity scalo which existing world conditions indicato es being essential for members of the Services.

(ii) The bases of the recommendations.

We invite reference to Appendix B of this Report in which are compared, in percentage relationship to the basic salaries of married mon with dependent children,

21.

(a) the existing rates of cost of living allowance;

(b) the average rates of cost of living allowance paid by Commercial Companies in Hong Kong to married men with two children;

(c) the Singapore rates of cost of living allowances; and

(a) the revised rates which we recommend.

These figures are illustrated in the Diagram attached to this Report, to which reference is also invited.

22. It is desirable briefly to review the considerations which govern our decisions us to the rates of allowances to be recommend-- od in respect of different parts of the basic salary scale.

Our

who

23. We may conveniently begin at the point of the basic salary of $150.00 paid to all beginners in the clerical service. cvidcnec shows that the present allowance of $100.00 (66.665%) provides inadequate gross cmoluncats even for such staff, may normally be expected to have smaller family commitments than older clerks. In recommending an allowance of 100% at this point, we have taken note of the fact that this was the average percentage rate of allowance paid to such buginner clerical staff by Commercial Companies in May, 1947 a rate which according to the evidence before us, has subsequently boun increased and we consider that the increase of $50 per mensum imlied by this recommendation should afford them the minimum relief which their present condition justifies,

100

24. From this point downwards in the basic salary scale $150.00 and undor in view of th. consideration mentioned

M

in paragraph 12 above we do not recommend any incrcase except

to the extent of any increases involved in our recommendation of the creation of a nar basis for the cost of living allowance by merging the rehabilitation allowance therein in the following mainer.

25.

Goverment employous at present receiving basic monthly salaries of $15000 per month or less are paid cost of living allowances on the following basis:-

Below $100 per month

$100 and below $150 per month.

Cost of living Allowance

equivalent to the Rehabilitation Allowance less $15.00.

Cost of Living -llowance

equivalent to the Rehabilitation Allowanco.

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