New | Potato chip money: Hong Kong civil service allowance headed towards HK$2 billion a year
A huge civil service allowance given to many top-tier employees is set to grow to more than HK$2 billion in under five years, as it continues to expand by almost one-third every year.
First revealed by a Post investigation in 2015, the non-accountable cash allowance will rise to more than HK$1 billion in 2017, to be shared by fewer than 5,000 employees, according to the budget this year. On average, recipients will get an additional HK$17,500 a month, higher than the average salary in the city.
A think tank called for the allowance to be abolished, but the government said it was growing in line with current legislation.
“They should scrap it right now,” Lion Rock Institute co-founder Andrew Shuen said. “The growth is definitely unhealthy in the sense that you already have a large number of base recipients for this particular allowance.”
The non-accountable cash allowance was introduced in June 2000 to replace housing allowances in one “flexible” package. Although technically a housing allowance, it can be spent on anything, which is why Shuen said public servants colloquially called it “potato chip money”.
Every year since its introduction it has grown by at least 30 per cent – if that trend continues, it will grow to more than HK$2 billion in the next five years.
“I understand why they are paid so much because the private sector in Hong Kong is very competitive,” he said. “They aren’t paid so much for their position but it should be more clear cut. If they want to truly compete with the private sector they should move to a more cash-based system. It would be so much more transparent for people.”
Recipients of the allowance can get as much as an additional HK$47,390 every month for higher civil servant pay grades.
The allowance is given only to eligible officers who started their jobs on or after June 1, 2000, according to a Civil Service Bureau spokeswoman. Those on more than HK$60,000 a month automatically qualified for the allowance, while those earning less received it based on a quota system and years of continuous service.
They are allowed to receive the allowance for a maximum period of 120 months.
The spokeswoman said the allowance was being allocated in line with legislation. “The increased provision in the 2016-17 estimates is mainly to reflect the expected increase in the number of recipients for the allowance.”
