Slashing or freezing the salaries of Hong Kong civil servants has been floated by many as a measure to tackle the city’s HK$100 billion (US$12.9 billion) deficit.
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Civil service expenses accounted for 20 per cent of the total government expenditure on average over the past five financial years, prompting calls to review the administrative structure to improve effectiveness.
The Post breaks down civil service expenses to see if freezing or cutting the salaries of about 173,000 government employees will help Hong Kong’s fiscal health.
1. How much does Hong Kong spend on civil servants?
In the previous five financial years, annual staff expenses – covering salaries, allowances and pensions – contributed between 17.2 per cent and 22.3 per cent of the total government expenses on average. The latest staff expenditure reached about HK$156.17 billion in 2023-24, 15 per cent more than the HK$135.55 billion recorded in 2019-20.
During 2023-24, about HK$94.54 billion, or 60.5 per cent of staff expenditure, went towards paying salaries and allowances. Pensions took up about another 30.6 per cent.
2. How much could be saved by freezing or cutting salaries?
In the past 25 financial years, civil servants often had salary raises, except for nine wage reductions or freezes, many happening during the 2000s.
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