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(a) whether the policy of adjusting the cash allowance in line with salary increases is consistent with the Government's prevailing policy on fringe benefits;
(b)
whether, in view of the ever-increasing amount of the cash allowance, the existing discrepancy in the remuneration package between the medical staff of the HA and those of private hospitals will be widened further;
(c) whether the cash allowance, which is intended to substitute some of the fringe benefits, includes an element of housing benefits; how many employees of the HA are now receiving both the cash allowance and benefits under the home loan interests subsidy scheme separately provided by the HA; and whether the provision of such housing benefits runs counter to the Government's established policy of not allowing the receipt of "double benefits"; and
(d)
whether a review will be conducted on the HA's remuneration package with a view to urging the HA to adopt another set of employment terms, which is similar to that offered to officers at comparable ranks in the Civil Services, in the recruitment of new staff?
Reply:
The remuneration package for employees of the Hospital Authority was drawn up by an independent firm of consultants. This remuneration package was designed on the basis that it would be comparable to the civil service package in terms of the overall cost to the employer. It comprises a basic salary and cash allowance, a non- contributory provident fund scheme, annual vacation, medical and dental treatment, life and disability insurance as well as a housing loan interest subsidy scheme. The level of cash allowance was determined on the basis of the partial encashment of certain civil service fringe benefits including retirement benefits, leave and housing benefits. It currently ranges from 8% to 60% of an employee's basic salary.
While the Housing Loan Interest Subsidy Scheme is an element of housing benefit within the Hospital Authority remuneration package, the cash allowance is non-accountable and not regarded as a housing benefit. Employees of the Authority who receive both an interest subsidy under the Scheme and the cash allowance do not, therefore, contravene the "no double housing benefits" rule. There are 3,627 employees currently receiving interest subsidy under the Scheme.