Hong Kongโs 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 increase will add about HK$6 billion (US$765.7 million) to annual government spending, 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 makes its final decision.
She said on Tuesday that the adjustment recognised civil servantsโ performance, adding that the decision followed the established mechanism, which takes into account the state of the economy and the cost of living.
โThe Executive Council has not only taken into account those figures, but has also taken into account factors relevant to this year,โ Yeung said.
โFactors such as the substantial financial commitments the government has to make for Hong Kongโs future development.
โAnd also the geopolitical situation, which has brought drastic changes to economies worldwide and affected Hong Kongโs economy, with no definite or clear outcome to those geopolitical tensions.โ