XN000022-1974-08-01 — Page 2

THURSDAY, AUGUST 1, 1974

PAY RISE FOR CIVIL SERVANTS LIIDUNSED

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THE FINANCE COMMITTEE YESTERDAY APPROVED OVERALL INCREASES IN SALARIES FOR ALL CIVIL SERVANTS INCLUDING THE DISCIPLINED SERVICES AND MINOR STAFF.

ALL THESE INCREASES ARE BACK-DATED TO APRIL 1 THIS YEAR.

A GOVERNMENT SPOKESMAN EXPLAINED THAT ALTHOUGH THE INCREASES IN SALARY SCALES RANCE FROM ACOUT 11 PER CENT - 21-1/2 PER CENT THE ACTUAL NET PAY INCREASES UNICH CIVIL SERVANTS WILL RECEIVE VARY FROM ACOUT FOUR PER CENT TO 14 PER CENT.

THIS IS BECAUSE THE NEW SALARIES TAKE INTO ACCOUNT AN INTER IN ALLOWANCE GRANTED LAST DECEBER TO CERTAIN CIVIL SERVANTS EARNING $4,135 A BONTH AND BELOU TO OFFSET THE RISE IN THE COST OF LIVING.

THIS ALLOWANCE, WHICH VARIED FROM $75 TO $200, EFFECTIVELY GAVE INCREASES RANGING FROM ABOUT 15 PER CENT AT. THE COTTON TO FIVE PER CENT AT THE $4,135 POINT, AND THESE AMOUNTS HAVE NOW BEEN INCORPORATED INTO SALARIES.

HE SAID THE FINANCE COMMITTEE HAD ONLY TAKEN THE DECISION AFTER THE ROST CAREFUL ANALYSIS OF THE EVIDENCE, AND HAVING REGARD TO THE ECONOMIC AND FINANCIAL SITUATION OF HONG KONG.

THE EVIDENCE COVERED SUCH MATTERS AS PAY TRENDS AND PAY LEVELS IN THE PRIVATE SECTOR AND MOVEMENTS IN THE COST OF LIVING AND FROH THIS IT VAS CONCLUDED THAT AN INCREASE IN PUBLIC SERVICE SALARIES VAS JUSTIFIED.

MOD 1 SCALE

UNDER THE NEW AWARD, STAFF ON MOD 1 SCALE, SUCH AS SKILLED AND UNSKILLED LABOURERS, WILL RECEIVE NET INCREASES RANGING FROM FIVE PER CENT TO NINE PER CENT. THEIR NEU SALARY WILL ALSO INCORPORATE THE $90 COST OF LIVING ALLOWANCE WHICH-UAS BEING PAID TO THEN ON APRIL 1.

FOR EXAMPLE, THE PAY OF AN UNSKILLED LABOURER ON THE BOTTOM OF THE SCALE WILL INCREASE FROM $520 A 1ONTH PLUS $90 COST OF LIVING ALLOWANCE TO $745 A MONTH.

THE MINIMUM SALARY OF AN ARTISAN WILL INCREASE FRON $762 A MONTH PLUS $90 C.O.L.A. TO $910 A MONTH.

DISCIPLINED SERVICES

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STAFF ON THE DISCIPLINED SCALES WILL RECEIVE NET INCREASES FROM 4.5 PER CENT TO 12 PER CENT. THE INCREASES HERE ALSO TAKE INTO ACCOUNT THE FACT THAT OFFICERS ON THESE SCALES WERE RECEIVING THE INTERIM ALLOVANCE AND THIS HAS NOW BEEN INCORPORATED INTO THEIR NEW BASIC PAY.

UNDER THE