Civil Service Secretary Ingrid Yeung on Sunday said most civil servants understood the need for a pay freeze given the government’s deficit.

Speaking on a Commercial Radio programme, Yeung said she had been told the move would not affect morale.

“During the discussions, I approached many civil service colleagues and most of them told me they understood the situation. Some even said it had been expected. Before the budget announcement, some union representatives had said that it would not affect morale,” she said.

Financial Secretary Paul Chan also announced in his budget speech on Wednesday that two percent of the civil service would be cut between the 2026/27 and 2027/28 financial years, with about 10,000 civil service posts expected to be slashed by April 1, 2027.

Yeung said the two percent cut was a minimum requirement, and departments could reduce more posts if they wanted.

However, Yeung said some vacancies had to be filled such as firefighters and teachers.