15 November 2002

Dear Colleagues,

Job-related Allowance Review

Further to my letter of 12 September 2002, I am writing to apprise you of the latest developments on the review of job-related allowances (JRAs).

We have consulted staff representatives and departmental management on our specific proposals on the way forward regarding 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.  We have also discussed our proposals with LegCo Members at the LegCo Panel on the Public Service.  The various parties we have consulted generally support our proposed way forward as set out in the consultation note.

Accordingly, we have decided, as proposed, that pending the completion of the comprehensive review of civil service pay policy and system, we should at this stage focus on measures which would improve on the administrative efficiency of the JRA system while broadly maintaining the existing framework of the JRA system.

In accordance with this broad objective, we have decided to take forward our specific proposals as set out in the consultation note.  To recapitulate, we shall :

(a) withhold action for the time being on the Standing Commission's recommendation to align the eligibility cut-off point for JRAs, currently at MPS 33, with that for Overtime Allowance;

(b) modify certain recommendations made by the Standing Commission on some of the JRA governing principles to provide added flexibility in the administration of JRAs and to rationalise existing practice; and

(c) accept the Standing Commission's recommendations on JRA categorisation, the rate-setting mechanism, a six-month moratorium for reviews and the future review and monitoring mechanism in respect of JRAs for civilian grades.

As mentioned in my last letter, since the Standing Committee has, of its own accord, reviewed all individual allowances payable to the disciplined services, there is thus no need for a moratorium for JRAs payable to the disciplined services as in the case of JRAs payable to civilian grades.  But in order to maintain broad consistency in the administration of JRAs throughout the civil service, the modified JRA governing principles will apply to civilian grades and the disciplined services alike.

For JRAs payable to civilian grades (except Shift Duty Allowance and Typhoon/Rainstorm Black Warning Allowances), they will be individually reviewed during a six-month moratorium which will start on 1 December 2002.  The detailed review of individual JRAs payable to civilian grades aims to ensure that continued payment of these allowances is justified.  During the moratorium, bureaux/departments will be required to review whether the payment of the relevant allowances under their purview should continue or cease, having regard to the revised JRA governing principles and other relevant circumstances.  For JRAs that are considered justified, bureaux/departments should also review the validity of the JRA rates and recommend the timeframe for the next review.  The departmental management is required to consult their staff when conducting the detailed review of individual JRAs payable to civilian grades.

During the moratorium, the rates of all JRAs payable to civilian grades will be frozen at the prevailing level.  Unless exceptionally approved by the Civil Service Bureau, payment of JRAs which are subject to review may not be extended to any newly created posts or any existing posts which do not currently receive the allowance, nor may any new JRAs be introduced.  Allowances will cease with immediate effect as soon as the review concludes that their continued payment is not justified or the latest at the end of the moratorium unless the review justifies their continuation.  The approval for continued payment will be on a time-limited basis not exceeding two years, subject to review and re-approval, if justified, by the end of the specified period.  This serves to ensure that all the JRAs will be subject to review at regular intervals.

With the implementation of the above measures, we shall be better able to ensure that only justified JRAs will continue to be paid.  I count on your cooperation in the conduct of the detailed reviews on individual JRAs payable to the civilian grades during the moratorium.

Yours sincerely,

(Joseph W P Wong)
Secretary for the Civil Service