Who benefits from the ‘significant improvement’ in Hong Kong’s finances?

When it comes to this year’s civil service pay rises, policymakers would do well to consider public sentiment

It’s that time of the year again – tax season, so don’t forget to fill out your return. It’s also the time of the year when the Hong Kong government decides on pay rises for its civil service staff of over 170,000.

The survey is just one of the factors the Executive Council considers before it determines the annual pay adjustments offered to civil servants. Exco will also take into account the state of the economy, the cost of living, the government’s fiscal position, staff pay claims and civil service morale.

Even ahead of a decision being made, the civil service has Financial Secretary Paul Chan Mo-po to thank first, because he laid the groundwork for the imminent pay rise months ago in his budget speech when he noted that the government’s public finances have seen “significant improvement”.

It’s clear that a lot of work has gone into ensuring that there will be civil service pay increases this year. Since we have supposedly solved our deficit and morale is a key consideration, every indication is that it will happen. And those in the private sector are reminded that during their appraisals, they can mention the civil servants’ pay rise.