Hong Kong will resume its annual pay trend survey, which informs civil servants’ wage adjustments, after skipping it last year and implementing a salary freeze.

Delivering the budget address on Wednesday, Financial Secretary Paul Chan praised “significant improvement” in the city’s public finances.

He announced that Hong Kong was set to see a HK$2.9 billion surplus after three consecutive years of deficits.

During last year’s budget address, Chan announced a pay freeze for public servants – including the chief executive and lawmakers – as the city forecast a deficit for the third straight year.

The move marked a departure from usual practices as the pay freeze decision was made without the authorities conducting their annual pay trend survey, which measures year-on-year pay movement of employees in the private sector.

Civil servants’ salary adjustments are typically made based on indicators derived from that survey, as well as other factors such as the economy, the government’s fiscal position, and civil service morale.

Last month, a top government advisor, Executive Council member Jeffrey Lam, called on the government to end the civil servants’ pay freeze, saying the economy had improved and that civil servants’ hard work should be recognised.

The finance chief also said that the economy was expected to grow up to 3.5 per cent in the current 2025-26 fiscal year. He cited strong external trade, a rebound in private consumption, and increased fixed investment.