CHAPTER 3
PAY TREND SURVEY SYSTEM
3.1 The pay trend
survey system produces annual indicators of the average pay movements of full-time
employees of private sector companies in the survey field. Based on information of changes
in salaries due to general pay increases, bonuses, merit payments and inscale increments
collected by the Pay Survey and Research Unit (PSRU) from these companies, gross pay trend
indicators (PTIs) are produced for three different salary bands for verification and
agreement by the Pay Trend Survey Committee, prior to release for public information.
3.2 In
accordance with the recommendations of a Committee of Inquiry in 1988, the Administration
deducts the value of civil service increments at their payroll cost (expressed as a
percentage of the total payroll cost for each salary band) from the gross PTIs to produce
the net PTIs. In adjusting civil service pay, the Administration takes account of the net
PTIs plus other factors such as budgetary considerations and the prevailing social and
economic conditions.
Pay Trend Survey
Committee
3.3 The Pay Trend Survey Committee (PTSC) is
an independent body established by the Government on the Commission's advice in 1983. It
is chaired by a Member of the Commission and comprising representatives from the
Administration and the Staff Sides. Detailed membership is given at Appendix F.
3.4 The main
function of the PTSC is to commission the annual pay trend survey, oversee the operation
of the PSRU in conducting the pay trend survey and agree to its results. Once the findings
of a pay trend survey have been agreed, neither the PTSC, nor for that matter the
Commission, is involved in any way in subsequent discussions between the Administration
and the staff on any pay adjustment based on the survey results.
3.5 In
tendering advice to the Chief Executive on the methodology for the pay trend survey, the
Commission will, as prescribed by its terms of reference, have regard to the advice of the
PTSC.
3.6 The PTSC
held three meetings during the year : the first in May to examine and validate the
findings of the 1997/98 pay trend survey; the second in September to review the
methodology and the survey field in preparation for the 1998/99 survey; and the last one
in November to consolidate the survey field and to commission the 1998/99 pay trend
survey. The PSRU, under the guidance of the Secretary General, continued to provide
support to the PTSC.
1997/98 Pay Trend
Survey
3.7 The 1997/98 pay trend survey took place between
February and May 1998. Out of a survey field of 77 companies, the PSRU collected
information on pay adjustments in 69 participating companies (comprising 124,292
employees) over the twelve-month period from 2 April 1997 to 1 April 1998 and analysed the
data in accordance with agreed criteria. After detailed consideration, the PTSC validated
the results and published the gross PTIs on 18 May 1998. A summary of the results of the
survey is at Appendix G. The revised pay scales for the civil service backdated to take
effect from 1 April 1998 are given at Appendix H.
Review of
Methodology and Survey Field
3.8 The methodology for the pay trend survey was
reviewed by the PTSC at its meeting in September. It was noted that the survey
questionnaire had been improved and made more user-friendly prior to the commencement of
the 1997/98 pay trend survey. Since the methodology had worked well to produce accurate
and creditable data for the compilation of the gross PTIs, the PTSC considered that the
same methodology could continue to be used without change for the 1998/99 pay trend
survey.
3.9 As regards the
survey field, which was reduced to 72 as a result of 5 companies opting out of their own
volition, the PTSC agreed that, for the 1998/99 pay trend survey, ten new companies be
added to increase the number of companies in the survey field to 82. This would help to
keep the survey field to around 80 companies, an average figure for the past six years.
3.10 The PTSC also decided in November
1998 to commission the PSRU to undertake the 1998/99 pay trend survey between January to
early May 1999.
3.11 We noted the above PTSC's decisions at the Commission's meetings on 8 October and 10 December 1998.