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Our Ref. : BP 6/25
12 September 2002
Dear Colleagues,
Job-related Allowance Review
I am writing to apprise you of the latest developments on the review on job-related allowances (JRAs).
In a three-month consultation exercise which ended on 22 February 2002, the Civil Service Bureau consulted the staff sides of the Central Consultative Councils and departmental management on the review recommendations made by the Standing Commission on Civil Service Salaries and Conditions of Service (the Standing Commission) and the Standing Committee on Disciplined Service Salaries and Conditions of Service (the Standing Committee) on JRAs payable to civil servants. After carefully considering the feedback obtained from the consultation exercise, we have drawn up specific proposals on the way forward and have today written to staff representatives to consult them on our proposals. The consultation deadline is 2 October. We are in parallel consulting the departmental management.
In formulating the way forward for this exercise, the following two broad factors were at the forefront of our consideration :
(a) It is incumbent upon the Administration to ensure that only justified JRAs will continue to be paid. We accept that the existing JRA system has room for improvement;
(b) Under the existing civil service pay system, JRA is a supplementary payment to compensate staff for carrying out certain extra duties. The reviews conducted by the Standing Commission and the Standing Committee in 1999 had proceeded on this basis. However, with the ongoing comprehensive review of our civil service pay policy and system, it is yet unclear how the pay system will be modified and whether the existing JRA system will be affected as a result. We, therefore, consider it appropriate to focus at this stage on measures which would improve the JRA system. Fundamental changes to the JRA system should best be considered in the context of the comprehensive pay policy review.
In view of these considerations, we intend to withhold action on the Standing Commission's recommendation of lowering the JRA eligibility cut-off point and to revisit the matter in the context of the comprehensive review of civil service pay policy and system. We also propose to modify certain recommendations made by the Standing Commission on some of the JRA governing principles and to accept the Standing Commission's recommendations on JRA categorization, the rate-setting mechanism, a six-month moratorium for reviews on individual JRAs for civilian grades, and the future review and monitoring mechanism.
During the six-month moratorium proposed by the Standing Commission, departments are required to review and justify each JRA payable to civilian grades within their purview (except Shift Duty Allowance and Typhoon/Rainstorm Black Warning Allowances which are payable for specified work conditions), and to re-affirm the validity of the allowance rates. Meanwhile, these rates will be frozen at the prevailing level. All JRAs that are subject to review during the moratorium will not be payable to any newly created posts or any existing posts which do not currently receive the allowance, unless with the CSB's exceptional approval. In addition, no new allowances will be allowed during the moratorium.
Insofar as JRAs payable to disciplined services staff are concerned, the Standing Committee has, of its own accord, reviewed all individual allowances payable to the disciplined services and have confirmed that they remain valid. There is thus no need for a moratorium as in the case of JRAs payable to civilian grades. But in order to maintain broad consistency in the administration of JRAs in respect of the civilian grades and the disciplined services, we consider that the proposed modifications of the governing principles for JRAs should apply to civilian grades and the disciplined services alike. As the proposed modifications are intended either to provide for greater flexibility in the JRA administration or to rationalise the existing practice, we do not envisage that they will have any material effect on the JRAs payable to the disciplined services.
Next Step
We shall take a final decision on the review recommendations of the Standing Commission and the Standing Committee on the payment of JRAs after considering the feedback from the staff representatives and departmental management. If finally so decided, we intend to commence the moratorium on JRAs payable to the civilian grades as soon as possible, so that the detailed review on individual JRAs may proceed. We would ask departmental management to consult their staff in taking forward the detailed review on individual JRAs.
Our current proposals are well balanced and are in the interests of the Government, the public and staff. We are confident that with the implementation of these proposals, we shall be better able to ensure that only justified JRAs will continue to be paid.
I shall write again later to keep you posted on developments on this subject.
Yours sincerely,
(Joseph W P Wong)
Secretary for the Civil Service
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