Government to pay $50 billion civil service pension in 2025/26

The government expects to reduce the civil service establishment by 3,000 posts to 193,000 posts by March 31 next year, according to a document submitted to the Legislative Council by the Civil Service Bureau.

Despite reduction in posts, the government has allocated a significant increase in funding for pensions and medical benefits for civil servants.

According to the document, which will be discussed at the Legco Panel on Public Service meeting on March 17, the budget for pension payments to eligible retired public officers will increase by over HK$1.7 billion, or 3.6 percent, to HK$50.1 billion in the next fiscal year.

The bureau attributed the increase to an expected rise in the number of new retirees.

The government will spend HK$2.9 billion on medical benefits for serving civil servants, eligible pensioners and other eligible persons, among which HK$1.16 billion proposed for Families Clinic services and dental services, a 6.1 percent increase compared to this fiscal year.

The budget for payment and reimbursement of medical fees and hospital charges will surge by 21.8 percent to over HK$1.7 billion.

Meanwhile, the government has set aside HK$10.3 billion for contributions under the Mandatory Provident Fund Scheme or the Civil Service Provident Fund Scheme, a 11.4 percent increase.

However, the budget for the Joint Secretariat for the Advisory Bodies on Civil Service and Judicial Salaries and Conditions of Service will decrease by 3.9 percent to HK$39.2million.

“This is mainly due to the decreased provision as a result of staff changes, partly offset by an increased provision for personnel related expenses and general departmental expenses,” the bureau said.

In a move to support young people, the government will provide around 4,000 short-term internship placements in over 80 bureaus, departments, and public organizations in the upcoming fiscal year. 

These internships aim to broaden students’ horizons, provide practical experience, and offer insights into government operations and civil service work, said the bureau.

(Ayra Wang)