The proposals are outlined in a report released by the Independent Commission on the Remuneration Package and Post-office Arrangements for the Chief Executive.

During the three years, the 'Former Chief Executive of the HKSAR', as he or she will officially be known, will not be able to work for property developers or franchisees approved during his or her tenure. Nor will he or she be allowed to lobby on government matters, be employed by anyone suing the government, or bid for government land, contracts or franchises.

The commission also recommends that from 2007 the new chief executive be paid $4 million, or $334,758 a month - an increase of more than $90,000 a month - and that the chief's holidays be reduced from 55.5 days a year to 22.

The chief executive should be given an official residence, but anyone who chooses not to live in the official residence will have to pay for accommodation themselves.

A government source said the only address being considered as the official residence was Government House, where colonial governors lived and worked before 1997. Tung Chee-hwa did not live there during his tenure.

The recommendations will be sent to the Executive Council for approval. As the changes would not come into effect until July 2007, the salary amendments will not apply to the next chief executive.

This means former chief secretary Donald Tsang Yam-kuen will face a big drop in salary in the next two years if he becomes chief executive, as expected. The chief executive is paid less than the chief secretary, but under the new arrangement, Hong Kong's leader will receive 12.5 per cent more salary per month than the second-in-command.

Commission chairman Wong Po-yan said the new package would not cost taxpayers any more as the higher salary came at the expense of holidays, gratuities and allowances. It was not clear whether the chief secretary will still earn more on a complete-package basis.

The benefits were criticised by the Article 45 Concern Group which includes legislators Margaret Ng Ngoi-yee and Ronny Tong Ka-wah. 'The chief executive is a public office. Once the occupier leaves the office, he or she is an ordinary citizen ... there is no reason why a former chief executive should be provided with office and staff,' they said in a submission to the commission.

Legislator Emily Lau Wai-hing said it was a disgrace that the restrictions were not in place before Tung Chee-hwa stepped down.

Ms Lau said proposals for the post-office arrangements were first discussed in 2001, before Mr Tung had finished his first term of office. A committee made up of judges, lawyers and legislators should be set up to enforce the restrictions, she said. 'If the committee just offers advice, he can ignore that advice. It would be very damaging and embarrassing if that were to happen.'

However, a government source said the committee's advice would be published, whether or not an application for employment was allowed, and he did not believe a former chief would risk public censure by seeking an inappropriate job.

Mr Tung will not be bound by the restrictions, but the report recommends he sign a declaration that he will abide by them. He is expected to be eligible for the office and other benefits from 2007.

Mr Wong said Mr Tung had verbally agreed to 'not to engage in any activities that would give rise to any possible conflict of interest after leaving office'.

Secretary for Constitutional Affairs Stephen Lam Sui-lung said setting up a support office for former chief executives would enable them to continue to play an ambassadorial role in helping to promote Hong Kong overseas and on the mainland.

Mr Lam said the office would not serve any particular chief executive who had retired but would be available to all former chiefs.

LIFE AFTER LEADERSHIP: THE PROPOSALS

Benefits

Office in government premises

Office staff

Bodyguards and security system for residence

Car and driver

Medical and dental care

Formal title of Former Chief Executive of the HKSAR

Use of SAR emblem on business cards, stationery and websites

VIP facilities at Hong Kong International Airport

Restrictions

Cannot use information gathered during term of office for financial gain

Cannot divulge classified or market-sensitive information learned during term of office

No employment in the first year after leaving office, except for charity work, appointments by central or HK governments, or work for non-commercial enterprises

In the following two years, approval needed for employment, plus former CE cannot:be employed by property developers

be employed by companies awarded franchises during CE's tenure

represent anyone suing the government

be employed by company in litigation with government

be involved in bidding on government land, contracts or franchises