EXECUTIVE SUMMARY

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Introduction	�@
1.	This is an interim report on progress in Phase One of the Review of Civil Service Pay Policy and System. The report is prepared by a Task Force set up by the three advisory bodies on civil service salaries and conditions of service, in response to an invitation from the Secretary for the Civil Service to conduct the review. �@	1.1- 1.4
2.	The Task Force has commissioned a consultant to carry out an analytical study on the latest developments in civil service pay administration in five selected countries. Five key areas are studied, including: (a) pay policies, system and structure, (b) pay ranges, (c) pay adjustments, (d) performance-based rewards, and (e) simplification and decentralisation of pay administration. �@	1.5
3.	Having regard to the consultant��s interim findings, the Task Force now presents its own preliminary findings and observations. �@	1.6- 1.7
Development of Civil Service Pay Policy and System in Hong Kong �@	�@
4.	The objective of the civil service pay policy in Hong Kong is to ��offer sufficient remuneration to attract, retain and motivate staff of a suitable calibre to provide the public with an efficient and effective service��. It is underpinned by certain principles relating to fair comparison with the private sector. The objective and principles have been accepted since the 1950s. �@	2.2- 2.7
5.	Various methods have been used to assess pay levels and trends with a view to establishing comparability with the private sector. A pay structure based on educational qualifications has also been established. �@	2.8- 2.43
6.	In recent years, the Government has introduced elements of a performance-based rewards system into the civil service. A pilot scheme on team-based performance rewards is being conducted. �@	2.44- 2.48
7.	While much has been done in recent years in the context of the ��Public Sector Reform�� to further the objective of decentralisation, the Government has been extremely cautious in venturing into the pay arena in such efforts. �@	2.49- 2.53
Findings and Observations �@	�@
8.	The five-country study by the consultant has provided knowledge regarding the five specific areas which the Task Force has been asked to focus on. �@	3.1- 3.8
9.	At this point in time, the Task Force maintains an open mind. It would like to raise a series of questions for general discussion, having regard to the consultant��s findings and the development of the civil service pay policy and system in Hong Kong. The questions relate to the need for change, as well as lessons learnt from the international research and their relevance to Hong Kong. �@	3.9- 3.51
Public Consultation	�@
10.	Views from all quarters of the community are welcome.	4.1- 4.6

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Paragraph

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This is an interim report on progress in Phase One of the Review of Civil Service Pay Policy and System. The report is prepared by a Task Force set up by the three advisory bodies on civil service salaries and conditions of service, in response to an invitation from the Secretary for the Civil Service to conduct the review.

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1.1-

1.4

The Task Force has commissioned a consultant to carry out an analytical study on the latest developments in civil service pay administration in five selected countries. Five key areas are studied, including: (a) pay policies, system and structure, (b) pay ranges, (c) pay adjustments, (d) performance-based rewards, and (e) simplification and decentralisation of pay administration.

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1.5

Having regard to the consultant��s interim findings, the Task Force now presents its own preliminary findings and observations.

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1.6-

1.7

Development of Civil Service Pay Policy and System in Hong Kong

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The objective of the civil service pay policy in Hong Kong is to ��offer sufficient remuneration to attract, retain and motivate staff of a suitable calibre to provide the public with an efficient and effective service��. It is underpinned by certain principles relating to fair comparison with the private sector. The objective and principles have been accepted since the 1950s.

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2.2-

2.7

Various methods have been used to assess pay levels and trends with a view to establishing comparability with the private sector. A pay structure based on educational qualifications has also been established.

�@

2.8-

2.43

In recent years, the Government has introduced elements of a performance-based rewards system into the civil service. A pilot scheme on team-based performance rewards is being conducted.

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2.44-

2.48

While much has been done in recent years in the context of the ��Public Sector Reform�� to further the objective of decentralisation, the Government has been extremely cautious in venturing into the pay arena in such efforts.

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2.49-

2.53

Findings and Observations

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The five-country study by the consultant has provided knowledge regarding the five specific areas which the Task Force has been asked to focus on.

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3.1-

3.8

At this point in time, the Task Force maintains an open mind. It would like to raise a series of questions for general discussion, having regard to the consultant��s findings and the development of the civil service pay policy and system in Hong Kong. The questions relate to the need for change, as well as lessons learnt from the international research and their relevance to Hong Kong.

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3.9-

3.51

Public Consultation

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10.

Views from all quarters of the community are welcome.

4.1-

4.6