Hong Kong civil servants could soon receive long-awaited pay increases, as sources reveal that the upcoming Budget has allocated funds to support a potential wage hike.
Financial Secretary Paul Chan Mo‑po is set to announce the 2026‑27 Budget at 11am on Wednesday (Feb 25). Among the most closely watched issues is whether the government will finally end the pay freeze imposed on public sector employees.
Last year, the government introduced a fiscal consolidation program that led to a pay freeze for civil servants and the suspension of the 2025 Pay Trend Survey.
However, with government finances now back in balance, sources say it will be harder to justify continuing the freeze. The Pay Trend Survey Committee is expected to resume its salary review, though the final decision and size of any raise will depend on established mechanisms.
Since the COVID-19 pandemic began in 2020, salaries for public sector workers have been frozen in three out of the last six fiscal years.
Some lawmakers have been suggesting linking proposed salary increases to individual performance as they are concerned about the current pay structure, arguing that it is unjustifiable both in terms of performance metrics and financial implications.
They have suggested that only about 80 percent of top-performing civil servants should receive a salary increase, ensuring that pay rises are tied to real achievements.
