Civil servants will receive a flat 2 percent pay rise for 2026-27, backdated to April 1, Secretary for the Civil Service Ingrid Yeung Ho Poi-yan said.
The announcement was made on Tuesday after the Executive Council decided on the adjustment following a comprehensive review of all pay-related factors, including public sentiment.
The uniform 2 percent pay rise is expected to increase annual government expenditure by HK$6 billion, with about HK$2.7 billion involving civil servants, ICAC officers and auxiliary forces.
The adjustment is lower than the net pay trend indicators, which ranged from 1.17 percent to 4.12 percent for lower, middle and upper salary bands.
Yeung described the decision as a “reasonable salary adjustment,” saying it could boost civil service morale and recognize officers’ contributions.
She said that despite an improvement in the government’s fiscal position over the past year, the administration must remain prudent in managing public finances, given Hong Kong’s substantial future financial commitments and possible short-term economic volatility arising from geopolitical changes.
After careful discussion, Yeung said the Executive Council considered the financial impact of the adjustment acceptable.
Acknowledging that the increase falls short of the 3 percent rise proposed by civil service unions, Yeung said she would explain the Executive Council’s considerations in detail and believed officers would understand the rationale behind the decision.
Asked whether the pay rise was affected by the handling of the Wang Fuk Court incident, Yeung said the Executive Council had considered public sentiment and acceptability, though it was difficult to quantify the weight of different factors.
Yeung said she will meet the four civil service central consultative councils on Wednesday to gather their responses, which will then be submitted to the Executive Council for a final decision.
The government will subsequently consult the Legislative Council before seeking funding approval from its Finance Committee.
Addressing concerns over the enhanced appraisal system, Yeung defended the proposed “semi-annual review” mechanism as a way to encourage timely improvement.
“The main purpose is to help employees make improvement as soon as possible, which would reflect in the six-month review,” she said.
For civil servants who have reached the maximum pay point of their rank, Yeung said withholding pay increments is not the only way to address underperformance, adding that a mechanism requiring early retirement is also being considered.
