The State Services Commission intends to cut about 22 positions in an effort to trim costs.
The plan has been unveiled to staff representatives in a discussion document.
Departmental managers say the job cuts are proposed to happen before 1 July, the start of the new financial year.
The commission hopes to maintain the same amount of work but concedes some tasks might have to be re-prioritised.
Last year it was decided that the commission's government technology services unit - which has 70 positions - would be moved into the Department of Internal Affairs.
The Public Service Association says it is concerned that the Government expects the State Services Commission to do more with fewer staff.
The union's national secretary, Brenda Pilott, says the State Services Commissioner has warned staff the commission is getting smaller but the Government's expectations are not.
Ms Pilott says the commission is already under pressure and the Government is placing an unfair and unrealistic burden on staff.
She says it is symptomatic of what is happening in the public sector, where at least 200 redundancies have been announced in recent weeks.
