The Hong Kong government could raise civil servants’ salaries by up to 4.12 per cent this year and plans to introduce a revamped appraisal system for its employees in October, a minister has said.

Secretary for Civil Service Ingrid Yeung said on Thursday that the tentative results of the 2026 Pay Trend Survey suggested a 4.12 per cent pay rise for senior civil servants, 2.64 per cent for middle-tier employees, and 1.17 per cent for junior staff.

The suggestions are based on findings from a survey of around 155,000 employees from 104 private companies conducted between April 2025 and April 2026. The survey’s results will be one of six factors considered by the Executive Council, the city’s top decision-making body, for a pay adjustment, Yeung said.

The other factors include “civil servants’ demand for salary adjustment and their morale,” Yeung said, adding: “I will meet with their representatives next week on these matters.”

The government resumed the pay trend survey this year following a salary freeze in 2025 amid a three-year fiscal deficit that strained public finances.

Financial Secretary Paul Chan estimated in his annual budget speech in February that the government could see a HK$2.9 billion surplus in the 2025-26 fiscal year.

Asked on Thursday whether a pay rise for civil servants would lead to a backlash in the wake of the deadly Tai Po fire, Yeung said the “vast majority” of government employees “are professional, efficient, and committed.”

“For the few underperforming civil servants, I believe the best way is to handle them through established mechanisms,” she said.

Yeung also said that under the revised appraisal system, civil servants’ performance assessments would be curved, and the bottom five to 10 per cent of staff may not receive a pay rise.

Department heads, especially those leading smaller teams or highly professional workers, may make a case to the Civil Service Bureau if they find the performance of all their staff members to be satisfactory, she added.

She promised that authorities would review the new mechanism to ensure fairness in the appraisal.