+.
5.
falls to a much lower proportion. For the police grades, the salary differential is not quite so large, but is still significant. The salary differential at the maximum point of the grade for police officers is generally around 30% for the most populous grades.
Effective Ratio of HK $ to UK £ You will appreciate that there are a number of different approaches that could be adopted to determining the effective ratio of Hong Kong dollar salaries to UK equivalent salaries. At one extreme, calculations might be based on the salary level applicable to each individual employee, or perhaps on a weighted average figure for each grade of employee. Alternatively, a straightforward average for each grade, ignoring the numbers and the distribution of pay points within that grade might be used. Another approach would be to take the normal maximum point in each grade in each territory and weight those figures according to the numbers of Hong Kong HMOCS in each grade at the present time. Effectively, this means calculating a weighted average of the Hong Kong dollar maximum salaries, and comparing this with a weighted average of the maximum pay bill that would be applicable if UK civil service salary rates were applied.
As there may be some doubt about the ease with which employees reach the top of the scale in the two territories, we have in fact adopted a variation of the weighted average approach, which results in a more favourable effective ratio than might otherwise be justified. Instead of using the top of the Hong Kong salary scale, we have calculated the weighted average of the Hong Kong pay bill using actual salaries for employees in the grade in question for the year 1991/92. However, for the UK figure, we have used the normal top point of the UK salary scale. By using the ratio of present Hong Kong salaries to the top of the scale UK salaries, the effective ratio obtained will understate the full extent of the differential between Hong Kong and UK. However, the figures shown below indicate that the differential obtained on this "favourable" basis is still very significant. Since the calculations have been derived using Hong Kong dollars for the Hong Kong salary and pounds sterling for the UK salary, the result effectively produces an equivalent exchange rate which is an amalgam of current exchange rates and differential salary levels.
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