City’s civil servants deserve a pay rise

The adjustment of civil service salaries has always been controversial. It is no different this year, as the public mood is still affected by economic uncertainties. Even though the proposed figures derived from a longstanding mechanism appear to be reasonable, there is resistance from the private sector. With staff morale still low and the post-Covid recovery fragile, the government is walking a tightrope.

The annual pay trend survey has been a good reference over the years. Based on the data collected from 108 companies over the past 12 months, the survey suggested increments of 2.87 per cent for top civil servants, 4.65 per cent for those in the middle ranks and 4.5 per cent for junior staff. In line with the previous practice to align the figures of the middle and lower bands, the majority of the 180,000-strong civil service may be awarded a pay rise of 4.65 per cent, while the top tier may be given an increase of 2.87 per cent.

The actual levels are to be determined by the Executive Council, taking into account factors such as the state of the economy, the cost of living, the government’s fiscal position and the staff’s views. In reality, the government has seldom deviated from the pay trend figures, except when facing unusual circumstances. For instance, government salaries were frozen for two years during the pandemic. Last year, even though the pay trend survey suggested increases of 7.26, 4.55 and 2.04 per cent for the three salary bands, the government only awarded a rise of 2.5 per cent across the board, citing the need for fiscal prudence amid economic uncertainties.

There are good reasons for the government to adhere to the pay trend survey figures this year. Despite reservations from some business leaders, the figures of 4.65 and 2.87 per cent are a close reflection of the pay trends in the private sector. The government is not in the position to offer hefty pay rises because of the fiscal position and the impact on private sector wages; but it has to make sure civil service salaries are broadly comparable with those in the private sector. This is especially important in light of the recent brain drain within the civil service. As the city has largely returned to normality, there is no reason not to adhere to the pay trend and give civil servants their due reward.