HR expert criticizes ‘unrealistic’ salary indicators but unionists want govt to follow through

A veteran human resources consultant has criticized the “unrealistic” pay trend indicators for adjusting civil servants’ salaries released on Thursday, expressing concerns that the move will put pressure on the private job market.

According to official data, the net pay trend indicators (PTI) for civil servants in the upper, middle, and lower salary bands are 4.01, 4.32, and 5.47 percent, respectively.

Alexa Chow Yee-ping, managing director at recruitment agency ACTS Consulting, said she was surprised by the latest findings in the 2024 Pay Trend Survey Report.

She went on to say that the economic environment is not ideal and many enterprises are inclined to give bonuses to staff. The range is approximately between 3.3 and 3.5 percent with many companies exercising caution towards salary increases, she noted.

Chow continued that the numbers are comparatively higher and said if the government follows through with the figures, it may put pressure on the private job market, especially public sectors that follow in the government’s footsteps.

“The survey results are unrealistic but the issue is that employers have to face the reality,” she said.

Tsoi Koon-lung, secretary-general of the Hong Kong Chinese Civil Servants’ Association, said the local economy is reviving and many enterprises are fighting over workers and that the survey results are in line with the general expectations.

He stressed that the association will review if there are any problems with the surveyed companies such as tax evasion and will consider other factors such as the government’s fiscal position, economic growth and civil service morale before giving suggestions to the government.

As to the voices which demand civil servants have their salaries decreased amidst a financial deficit, Tsoi said he understands the financial pressure faced by the government but hopes authorities will consider maintaining the purchasing power of civil servants and allow them to share the fruits of economic growth.

Civil servants had their salaries frozen when the economy was bad and the accumulative salary hikes for civil servants in certain ranks still lag behind the inflation rate.

The civil service remains understaffed and under a lot of stress, Tsoi also said, noting that the morale will be greatly impacted if salaries are decreased and overall would not benefit the economy.

Leung Chau-ting, chair of the Federation of Civil Service Unions, hopes the government will increase civil servants’ salaries in accordance with the indicators. He added it will be difficult for the government to compete with the private market without a salary increase, citing existing hurdles in recruiting junior ranking civil servants.