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Hong Kong Government Announces Civil Service Pay Freeze and Workforce Reduction Amid Fiscal Consolidation Efforts

Measures include a pay freeze effective April 1, 2025, and a planned reduction of 10,000 civil service positions by April 2027
The Hong Kong government has outlined key initiatives in the 2025–26 Draft Estimates of Expenditure concerning the civil service, including a pay freeze and a progressive reduction in the number of civil service posts.

The pay freeze will take effect from April 1, 2025, and will apply to civil servants, the executive authorities, the legislature, the judiciary, and members of District Councils.

This measure forms part of the government’s broader fiscal strategy for the coming year.

Since the 2021–22 financial year, a zero-growth policy has been in place for the civil service establishment, capping the number of positions at around 196,000.

With annual reductions implemented, the civil service establishment is projected to decrease to approximately 193,000 by March 31, 2026. The government plans further cuts of 2 percent annually in 2026–27 and 2027–28, potentially eliminating around 10,000 positions by April 1, 2027.

These reductions will be managed through reorganisation and reprioritisation of departmental work, and will involve reviewing both filled and vacant posts.

Roles critical to public services, such as Air Traffic Control Officers and Station Officers, will be retained, with recruitment continuing where necessary.

The government will also continue to promote digitalisation, management reform, and internal resource redeployment across departments to maintain efficiency.

Departments are expected to streamline operations and leverage technology to support service delivery within a leaner workforce.

The Civil Service College will receive an estimated 255 million Hong Kong dollars in 2025–26 to strengthen training and governance capacity.

The Governance Talents Development Programme will be launched to nurture leadership with a macro perspective, and expanded content on technological applications will be introduced in leadership courses.

Medical and dental benefits for civil servants and eligible persons will continue under existing contractual arrangements.

A provision of around 1.158 billion Hong Kong dollars has been reserved for clinic and dental services, including pilot schemes with private providers and a facility in Shenzhen.

An additional 1.766 billion Hong Kong dollars is allocated for the reimbursement of medical expenses not covered by standard services.

The Civil Service Bureau will continue with other initiatives such as exchange programmes with cities in the Greater Bay Area, enhancement of the disciplinary mechanism, implementation of two dental service pilot schemes, and provision of childcare leave for government employees.
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