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Who benefits from the ‘significant improvement’ in Hong Kong’s finances?

It’s that time of the year again – tax season, so don’t forget to fill out your return. It’s also the time of the year…

By Samantha Johnson / June 1, 2026

It’s that time of the year again – tax season, so don’t forget to fill out your return. It’s also the time of the year when the Hong Kong government decides on pay rises for its civil service staff of over 170,000.

There’s a well-established system for deciding on pay rises. It includes the pay trend survey submitted to the government last week. Its preliminary results indicate that civil servants are in line for wage increases of 4.12 per cent for senior civil servants, 2.64 per cent for middle-ranking staff and 1.17 per cent for junior employees.

The survey is just one of the factors the Executive Council considers before it determines the annual pay adjustments offered to civil servants. Exco will also take into account the state of the economy, the cost of living, the government’s fiscal position, staff pay claims and civil service morale.

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Even ahead of a decision being made, the civil service has Financial Secretary Paul Chan Mo-po to thank first, because he laid the groundwork for the imminent pay rise months ago in his budget speech when he noted that the government’s public finances have seen “significant improvement”.

When Chief Executive John Lee Ka-chiu was asked about how the tragic Tai Po fire and public perception of government failures especially would impact civil service pay, and how he would balance that against morale, he spoke of looking at performance as a whole. Lee highlighted that about 1,000 civil servants helped Wang Fuk Court residents collect items from their flats every day. He also mentioned that the civil service pay adjustments affect the private sector.
A care team member (front) helps a resident move her belongings from Wang Chi House of Wang Fuk Court on May 15. The building was the only block left largely unscathed in last year’s deadly Tai Po fire. Photo: Sun Yeung
A care team member (front) helps a resident move her belongings from Wang Chi House of Wang Fuk Court on May 15. The building was the only block left largely unscathed in last year’s deadly Tai Po fire. Photo: Sun Yeung

It’s clear that a lot of work has gone into ensuring that there will be civil service pay increases this year. Since we have supposedly solved our deficit and morale is a key consideration, every indication is that it will happen. And those in the private sector are reminded that during their appraisals, they can mention the civil servants’ pay rise.

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