TNAG-0695-FCO40-845-Policy-on-salaries-for-civil-service-in-Hong-Kong-1977 — Page 252

C.S. 166

CONFIDENTIAL #2

5 -

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Household expenditure range Increase

Index

CPI(A) CPI(B)

Hang Seng

$400-$1, 499 $1,499

$1,500

$2,999

$3,000

$9,999

4.62%

4.89%

4.90%

Since 1974, when the PIU first produced sound evidence of the move- ment of pay in the private sector, movement in the cost of living has not been the principal criterion in considering Civil Service pay levels.

Proposals

Master Pay Scale and MOD 1 Scale

16

It is considered that the PIU Pay Trend Survey report should be used as the prime evidence of private sector pay movements, and that this data should be interpreted in the same way as in the two previous reviews. For the Master Pay Scale, this indicates that a pay increase should be based on the sum of the figures in paragraphs 5 and 6 above, as follows:

Master Pay Scale

1976-77

1975-76

Total

Minimum

6.86

1.02

7.88

Mid-point

6.82

0.88

7.70

Maximum

6.41

0.24

6.65

Average

6.70

0.71

7.41

17

Following the procedures adopted in arriving at the proposals for the 1st April 1976 Civil Service pay increase, this can be interpreted as supporting an overall salary increase of the order of 71% for the Master Pay Scale. If the backdated increases are treated simply as increases in the 1976-77 period, which is a possibly valid approach, the overall increase is 7.39% (see paragraph 10 above), which in any case supports an upward revision of the order of 7%.

18

The evidence for the MOD 1 scale (see paragraph 7 above) indicates an increase of the order of 9%. It is, however, necessary to retain present relativities with the Master Pay Scale in order not to disturb supervisor (Master Pay Scale) and subordinate (MOD 1 scale) differentials. It is therefore proposed to increase the Master Pay Scale overall by 7%, but with the increases being nearer 8% at the lower end of the scale and nearer 7% at the upper end; and to increase the MOD 1 scale in line with the increases at the equivalent points on the Master Pay Scale. This proposed style of increase for the Master

CONFIDENTIAL ##

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