The Social Welfare Department said on Monday it would increase the monthly allowances paid to people on a range of support schemes by 3.3 per cent from February.
These include recipients of the Comprehensive Social Assistance, the Old Age Allowance and the Disability Allowance.
A government spokesman said that 1.5 million people are expected to benefit from the adjustment.
The government received approval from the Legislative Council's finance committee last month to implement the increase.