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The Mandatory Provident Fund Schemes Authority (MPFA) today (1 August) reviewed staff remuneration. In view of the current economic and social circumstances, Board Members decided to impose a pay cut which will achieve a reduction of 4.2 per cent in total salary cost.

The Management Board has postponed the annual review on staff remuneration from March to await the report of the Hay’s Survey on the remuneration of senior executives of public bodies. The Management Board considered and accepted the principles recommended by the Government consultant.

Members noted that the remuneration packages of the senior management were in line with the principles and findings put forth by the Hay Report, and were satisfied with MPFA achieving its targets for 2001/02. Nevertheless, taking into account the current economic and social climate, the Board decided on a pay cut, resulting in a saving of about $5 million.

The Hay Report also proposed a mix of fixed and variable pay for senior executives. The Board was hence pleased that the MPFA has since its inception implemented a mixed remuneration approach for all staff.

The Chairman of the MPFA, Mr. Charles Lee Yeh-kwong, said: “The variable pay is an intrinsic part of the total pay package. Under this pay structure, a portion of the total pay will only be paid upon satisfactory delivery of results by the Authority and individual staff.”

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1 August 2002