TNAG-0991-FCO40-1210-Policy-on-salaries-and-pensions-for-civil-service-in-Hong-Ko-1980 — Page 7

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

XCC(80)92

Financial Implications

20

Whichever option is selected the cost for a full year for the Civil Service alone is likely to be in the region of $700 million. This sum increases to about $1,000 million when the subvented sector is taken into account. Clearly, an adjustment of this magnitude, which is almost three times as high as last year's, is likely to have some effect on this year's budgetary strategy and, generally, on the economy. It would also result in personal emoluments absorbing some 42% of recurrent expenditure in 1980-81 compared with the budgeted figure of 38% and an historical ratio, in the 1970s, of 41%. Moreover, it should be borne in mind that recent salary adjustments for the Civil Service over the two year period from 1st April 1979 to 31st March 1981, the payment of which has already been or will shortly be made, are considerably greater in terms of cash payments than the $1,000 million likely to be required for the 1980 pay adjustment. These additional payments in respect of salary adjustments of one sort or another are of the order of $1,600 million, including the subvented sector, made up as follows

In respect of 1979-80 $ million

In respect of 1980-81 $ million

Total $ million

(a)

1979 pay adjustment

364

364

728

(an understatement

because no increase in

establishment is assumed)

(b)

Report No 2 of

Standing Com-

mission

261

514

(an understatement

because no increase in

establishment is assumed)

775

(c)

Adjustment to the

upper end of Civil

Service Pay Scales

25

48

73

(d)

Directorate

review 1980

9

36

45

(e)

Pay of Staff of the

Independent Commission

Against Corruption

2

3

5

Total

661

965

1626

CONFIDENTIAL #R

機密

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