The civil service voluntary retirement scheme has saved $132 million less than originally targeted after some senior posts vacated were not scrapped but filled by promotions.
The shortfall has prompted the government to tighten rules requiring departments to scrap the posts in the second phase of the scheme to be launched this year.
The administration sought $2.78 billion to compensate 9,800 workers for early retirement three years ago. Departments were only required to axe one post for each retiree regardless of rank.
Speaking at a Legco public service panel meeting yesterday, Secretary for Civil Service Joseph Wong Wing-ping admitted that some departments had kept the vacant posts for promotions and scrapped junior posts to meet numerical targets.
The savings in salaries amounted to $750 million, 15 per cent less than if the posts vacated had all been deleted.
But Mr Wong stressed that department heads needed the flexibility to keep a proper hierarchy for management. He said the second phase of the scheme would strictly prohibit departments from scrapping lower-ranked posts in light of the mounting budget deficit, which may reach $70 billion this financial year.