Pay freeze looms for civil servants

Wallis Wang

More than 170,000 civil servants may have their salaries frozen amid efforts to cut costs in light of the fiscal 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 today.

All civil servants are set to receive a 3 percent pay increase across the board for the 2024-25 fiscal year. According to 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 pay cuts of 3 percent both 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 pandemic also prompted a pay freeze in 2020 and 2021.

Sources said the government will also announce increasing the fixed penalty for traffic offenses, including the illegal parking fine to HK$400 from HK$320.

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

wallis.wang@singtaonewscorp.com