Civil service cuts on cards but $50.1b set aside for pensions

Ayra Wang

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

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

The document, which will be discussed at the Legco Panel on Public Service meeting on March 17, states that 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 is proposed for Families Clinic services and dental services, a 6.1 percent increase over 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, an 11.4 percent increase.

But 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$39.2 million.

"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.

The government will also provide some 4,000 short-term internship placements for students in over 80 bureaus, departments and public organizations in the next fiscal year.

ayra.wang@singtaonewscorp.com