Retired civil servants are expected to have their monthly pensions raised for the first time in six years because of modest inflation last year.
The government is expected to follow changes in the consumer price index over the past year to increase pension payments for 80,000 retirees by less than 1 per cent.
Present laws do not provide for a reduction in line with deflation. Pension payments have been frozen since 1999, despite accumulated deflation of 13.3 per cent.
Questions have been raised on whether the government should put the increase on hold until the accumulated negative figures have been offset.
The Civil Service Bureau declined to comment on the possible increase yesterday.
Legislator Lee Cheuk-yan, of the Confederation of Trade Unions, said he would not object if the government wanted to take the accumulated deflation into account.
But he stressed that officials should first reach a consensus with civil servants and amend relevant laws.
