Civil servants' pay freeze to save $8.7b

Pay freeze for Hong Kong’s civil service is expected to save HK$8.7 billion if market wages rise by 3 percent, according to a Research Brief published by the Legislative Council Secretariat. 

The report also highlighted the government’s plan to cut around 10,000 civil service posts over two years, though savings may be limited as the current establishment exceeds actual staffing by 18,900 positions.

The report compared civil service scales across advanced Asia-Pacific economies, noting that Hong Kong’s civil servants accounted for 4.7 percent of total employment in 2023, higher than in South Korea and Singapore, highlighting the potential of artificial intelligence to boost efficiency.

Additionally, the report reviewed public transport subsidy schemes in 12 global cities, finding that Hong Kong’s adjusted HK$2 fare concession scheme remains competitive, particularly for those aged 60-64, as only four other cities offer similar benefits for this age group.

(Ayra Wang)