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Hong Kong has announced that all civil servants will have their salaries frozen.

Hong Kong announced: all civil servants are frozen in salary, including Li Jiachao! It is expected to cut about 10,000 jobs……

On February 26, the Financial Secretary of the Hong Kong Special Administrative Region Government, Paul Chan, announced at the Legislative Council when the 2025-2026 Budget (hereinafter referred to as the “Budget”) announced that Hong Kong’s consolidated deficit for 2024/2025 is expected to be HK$87.2 billion, and fiscal reserves are expected to be HK$647.3 billion on March 31, 2025.

For government operating expenses, all staff of the executive, legislature, judiciary and District Councils in 2025/2026, including the Chief Executive, Mr John Lee, will be paid a wage freeze.

On February 26, 2025, the Financial Secretary of the Hong Kong Special Administrative Region Government, Paul Chan Mo-po, in the Legislative Council Complex of the Hong Kong Special Administrative Region

Announcement of the HKSAR Government Budget for the 2025/2026 Financial Year Photo source: Visual China


Mr Chan mentioned that the revised revenue budget for the HKSAR Government for 2024/2025 is about HK$559.6 billion, which is 11.6% lower than the original budget. Profits tax and salaries tax receipts remained stable at HK$177.7 billion and HK$88 billion respectively, similar to the original estimates, reflecting the resilience of Hong Kong’s economy. However, asset markets have been under pressure and government revenues from both land and stamp duty have decreased.

Government expenditure for 2024/2025 is similar to the estimate, with the revised estimate of overall expenditure at HK$754.8 billion, HK$22.1 billion lower than the original estimate. Of this total, recurrent expenditure amounted to HK$562.5 billion, HK$17.7 billion lower than the original estimate. With the issuance of HK$130 billion of government bonds and the repayment of HK$22.1 billion maturities, the HKSAR Government is expected to have a consolidated deficit of HK$87.2 billion in 2024/2025. Fiscal reserves are estimated at HK$647.3 billion as at 31 March 2025.

Looking ahead to 2025/2026, Mr Chan said that the HKSAR Government will continue to invest resources to consolidate the momentum of economic growth, accelerate the development of the I&T industry and enhance public services, and increase expenditure on infrastructure projects to support the sustainable development of Hong Kong’s economy in the Northern Metropolis and other public works projects related to the economy and people’s livelihood.

At the same time, Mr Chan also said that the HKSAR Government will vigorously control government operating expenditures, and announced that all staff of the executive, legislature, judiciary and District Councils will be subject to salary freezes for 2025/2026, including the Chief Executive and politically appointed officials. Non-official Members of the Executive Council; all civil servants; the President and all Members of the Legislative Council, as well as the staff of the Secretariat; the Chief Justice of the Court of Final Appeal, judges of all levels of courts and members of the Judiciary; and District Council members. In view of the cost cuts and optimisation of the use of manpower, the civil service establishment will be reduced by 2% in each of the 2026/2027 and 2027/2028 academic establishments. It is expected that about 10,000 jobs will be cut during the current government’s term by April 1, 2027.

According to the Civil Service Bureau, civil service salary-related expenditure in the last financial year reached HK$156.2 billion, up by HK$7.1 billion year-on-year, an increase of about HK$20 billion over 2019/2020, accounting for nearly 26% of the Government’s operating expenditure, up 4.37 percentage points year-on-year.

In order to attract, encourage or retain talents to serve the people of Hong Kong with adequate salaries, the HKSAR Government conducts annual surveys to adjust the remuneration of civil servants. Under normal circumstances, civil servants in the HKSAR Government, regardless of whether they are promoted or not, will receive a salary increase in the salary adjustment every year. Salary freeze means that the salary remains unchanged for the current year. In the past 26 years, due to SARS, the 2008 financial tsunami and the new crown epidemic, Hong Kong civil servants have had five years of salary freezes.

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