Potential salary freeze for over 170,000 civil servants amid cost-cutting measures

More than 170,000 civil servants may have their salaries frozen as the government aims to cut costs in light of the deficit, according to sources. 

It is understood that the government will also review the civil service establishment and study whether some positions could be abolished with the help of technology.

Sources indicate that the government is likely to announce a one-year pay freeze for all civil servants in the budget on Wednesday. 

All civil servants received a three percent pay increase across the board for the 2024/25 fiscal year.

According to the Civil Service Bureau statistics, salaries for civil servants reached HK$156.2 billion over the past fiscal year -- HK$20 billion higher than in the 2019/20 fiscal year. 

This expenditure accounted for 26 percent of the government's operating budget.

The government has a history of freezing or cutting civil servants’ wages, including a pay freeze in 2003 following the SARS outbreak, as well as two 3 percent pay cuts in 2004 and 2005. 

In 2009, senior civil servants had their salaries cut by 5.38 percent due to the financial crisis, while junior and mid-level staff experienced a pay freeze. 

The economic turmoil following the COVID-19 pandemic also prompted a pay freeze in 2020 and 2021.
Sources said the government will also announce to increase the fixed penalty for traffic offenses, including raising the illegal parking fine from the current HK$320 to at least HK$400. 

The current HK$600 fine for red-light jumping and HK$560 for parking at stopping restriction areas will also be increased to above HK$700, according to sources.

(Wallis Wang)