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Consultation on the Proposals on the Methodology of the Pay Level Survey and the Application of the Survey Results

In 1999, the Government launched the Civil Service Reform to ensure that Hong Kong continues to have a clean, efficient and cost-effective civil service of the highest international standard in keeping with the changing circumstances and the growing expectations of the community. During the past few years, we have made substantive progress in various areas of civil service management.

As a key component of the civil service management system, the civil service pay policy and system is one of the focus areas for improvement under the Civil Service Reform programme. In December 2001, the Civil Service Bureau (CSB) invited the three independent advisory bodies on civil service salaries and conditions of service to conduct a comprehensive review of our civil service pay policy and system. Our current exercise to develop an improved pay adjustment mechanism for long-term adoption in the civil service has stemmed from the recommendations arising from the review. Under the improved civil service pay adjustment mechanism, the conduct of periodic pay level surveys will be the principal means to ascertain whether civil service pay is broadly comparable to private sector pay and thus, in compliance with the established civil service pay policy.

On 4 November 2004, CSB issued a consultation paper (PDF Format) sets out the proposals on the methodology of the pay level survey recommended by an outside consultant (Phase One Consultant) (details about the recommended methodology are contained in the consultant's final consultancy report) and on the application of the survey results to the civil service.

Following the close of the consultation period, we received submissions from various parties, including bureau/departmental management, staff bodies, individual civil servants, non-government organisations and members of the public. In the light of the consultation feedback (PDF Format), the Phase One Consultant refined his recommended methodology.

For the phase two consultancy, following the Government's established procedures for the procurement of consultancy services, we appointed in June 2005 a consultant to carry out the field work of the pay level survey (Phase Two Consultant).

The development of an improved civil service pay adjustment mechanism, which seeks to maintain broad comparability between civil service pay and private sector pay, is an important milestone in our effort to improve the civil service pay system. It is our intention to pursue other pay-related initiatives in a step-by-step manner following the completion of the current exercise with the objective of making the civil service pay system simpler and easier to administer, and building in more flexibility to facilitate matching of jobs, talents and pay.

Useful Reference

- Phase One Consultant's final report on the Methodology of a Pay Level Survey for the Civil Service

- Methodology of a Pay Level Survey for the Civil Service: Report on Refined Recommendations Following the Extensive Consultation Conducted between November 2004 and January 2005

- Papers for Legislative Council :