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Home > Administration of the civil service >> Retirement

Pension adjustment mechanism

Increase in pensions is governed by the Pensions (Increase) Ordinance and Widows and Orphans Pension (Increase) Ordinance. In accordance with the pension increase legislation, pensions paid to pensioners under pension schemes for civil servants and judicial officers and their dependants shall be subject to an annual increase according to the annual increase in the Consumer Price Index (A) (CPI(A)). The increase shall be calculated by reference to the increase in the annual average monthly CPI(A) of the last financial year over that of the immediately preceding financial year.

The annual average monthly Consumer Price Index (A) in 2020-21 is lower than that of the preceding year by 0.1%.  Therefore, in accordance with the pension increase mechanism, pensions will be frozen at their existing levels in 2021-22.

Useful Reference

Pensions (Increase) Ordinance (Chapter 305, Laws of Hong Kong)
Widows and Orphans Pension (Increase) Ordinance (Chapter 205, Laws of Hong Kong)

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