Hong Kong’s Executive Council says the Special Administrative Region’s 180,000 public sector employees will not get a pay rise this year — the first freeze since 2009.
In a statement, the Council said it was dealing with an “unprecedentedly poor economic situation” because of the Coronavirus pandemic and there was no money available for an increase.
“The threat of COVID-19 and the necessary anti-epidemic measures seriously disrupted a wide range of economic activities in Hong Kong,” the statement said.
In making this decision, the Council, which serves as the city’s Cabinet, overruled the Official Pay Trend Committee’s recommendation to increase salaries by up to nearly two per cent, which would have been the lowest increase in almost a decade.
Chief Executive, Carrie Lam Cheng Yuet-ngor had hinted at such a decision before the Council meeting.
“The annual pay adjustment does not necessarily follow mechanically the indicators derived in the pay trend survey,” Ms Lam said.
“I hope our Civil Service colleagues can understand and appreciate that Hong Kong is facing a very difficult time,” she said.
“Everyone is in the same boat and we need to be united to ride out the difficult time together.”
Major Public Service unions expressed deep disappointment at the decision, with one threatening to withdraw from the Government pay adjustment mechanism for good.
Chief Executive of the Federation of Civil Service, Leung Chau-ting said the pay freeze was politically motivated as Ms Lam hoped to please the public and boost her popularity.
“If Civil Servants get no pay rise, the chain effect is that the private sector will also freeze pay, or even cut pay,” Mr Leung said.
“It is not good to all Hong Kong employees,” he said.
Chair of the Disciplined Services Consultative Council (DSCC), Bonnie Lo Hoi-sze said it would hit staff morale.
“If there is an established mechanism, the Government should follow it. Otherwise, what is the point of having the mechanism?” Ms Lo said.
Chair of the Hong Kong Chinese Civil Servants’ Association, Li Kwai-yin said the decision threatened the stability of the Public Service and said he association might withdraw from the pay adjustment system.
Hong Kong, 3 June 2020
