Hong Kong civil servants to get flat 2% pay rise amid fiscal prudence

Civil service chief Ingrid Yeung says public sentiment has been factored into all decisions by city’s leader and top decision-making body, including this pay rise

Hong Kong’s top decision-making body has proposed a flat 2 per cent pay rise for civil servants this year, citing the need for a prudent approach to managing public finances amid a volatile geopolitical environment.

The raise will bring about an extra annual government spending of HK$6 billion (US$765.7 million), according to Secretary for the Civil Service Ingrid Yeung Ho Poi-yan, who will meet staff representatives on Wednesday as part of the process before the Executive Council takes its final decision.

She said on Tuesday that the adjustment recognised civil servants’ performance, adding that the decision followed the established mechanism, which takes into account the state of the economy and the cost of living.

“The Executive Council has not only taken into account those figures, but has also taken into account factors relevant to this year,” Yeung said.

“Factors like substantial financial commitments the government has to make for Hong Kong’s future development.

“And also geopolitical situation that has brought drastic changes to economies worldwide and impact on Hong Kong’s economy, and [continues to lack a] definite, clear outcome of those geopolitical tensions.”