The Government announced the latest Budget today. As the operating account is expected to return to a surplus this financial year, the Government has moderately strengthened support for grassroots communities. Measures include providing an extra one‑month allowance to eligible social security recipients, increasing the provision for the “Re‑employment Allowance Pilot Scheme”, and enhancing support for women’s employment and working families. Oxfam Hong Kong (OHK) welcomes these measures, which help address the needs of grassroots communities and facilitate the re‑engagement of potential labour force into the labour market.

OHK hopes the Government will continue to allocate resources to improving the overall working environment, for example, by promoting a Living Wage to enhance the living conditions of grassroots workers and foster upward mobility. In the context of advancing artificial intelligence (AI) and innovation, and technology, the Government should create more quality job opportunities for potential workers to build up a more comprehensive employment policy. The Government should also promote tripartite collaboration among the Government, businesses and the community to enhance the resilience of grassroots communities and improve people’s quality of life.

Henry Tang, Director General of Oxfam Hong Kong, said: “We welcome the Government’s commitment to enhancing people‑oriented measures when there is a fiscal surplus. In today’s complex and fast‑changing global political and economic environment, we hope the Government will leverage public financial resources to invest in society and strengthen the resilience of vulnerable groups. This includes improving the working conditions of grassroots workers and creating more appropriate employment opportunities for potential workers.”

OHK proposes the following recommendations:

1. Voluntary Living Wage Level Announced by Government to Protect Grassroots Workers

This year’s Budget proposes allocating HK$222 million in the coming financial year to increase the provision for the “Re‑employment Allowance Pilot Scheme”. Resources will be also directed to support the “Employment Programme for the Elderly and Middle‑aged” (EPEM). OHK welcomes these initiatives, which can encourage elderly and middle-aged persons to re‑enter the labour market, promote the development of the silver economy, and strengthen employers’ incentives to hire elderly and middle-aged job seekers.

To ensure the long‑term sustainability of these measures, we urge the Government to improve the overall work environment and announce the Living Wage level. This would help protect grassroots workers’ basic quality of life and promote upward mobility. At present, the Statutory Minimum Wage stands at HK$43.1 per hour, which remains below the average Comprehensive Social Security Assistance (CSSA) level for a two-person household. We believe that adjustments to the minimum wage should follow three key principles: annual inflation‑based revision, meeting basic household needs, and exceeding the CSSA level. Based on the CSSA level for a two-person household, the minimum wage should be no less than HK$53.6 per hour.

Since 2018, OHK has been advocating for the adoption of Living Wage (no less than HK$62.8 per hour in 2025). We review the Living Wage standard annually based on inflation and consumer spending patterns. We recommend that the Government announce a Living Wage level every year and apply it to outsourced service contracts, thereby driving wage improvements across the private sector. This would not only protect workers’ basic living standards but also strengthen household purchasing power and help stimulate the local economy, including the continued growth of the silver economy.

2. Advancing Technology and Social Investment in Parallel to Create Quality Employment Opportunities for Vulnerable Groups

This Budget emphasises alignment with the national 15th Five-Year Plan to accelerate innovation and technology R&D while improving industrial structure. OHK is concerned about the ability of vulnerable industries and grassroots communities to adapt during economic transformation. We believe the Government should strengthen labour force projections and employment policies to ensure that society benefits. As technology becomes more prevalent, certain labour‑intensive sectors, such as construction and public services, may gradually be replaced by technological solutions. The Government should concurrently allocate resources to skills transfer, retraining, and job matching to mitigate the impact on grassroots workers throughout this transition.

An ageing population is driving sustained growth in community needs. Integrating technological advancement with social services not only stimulate employment and economic activity but also better address diverse needs. For example, smart healthcare can improve the efficiency of elderly care; green technology can expand recycling and environmental industries; and digital platforms can support community markets and grassroots entrepreneurship. These sectors offer accessible training with relatively low entry barriers, making them effective at absorbing underutilised labour, including elders and women with caring responsibilities. By providing suitable positions with flexible working hours, alongside Government re-employment schemes and comprehensive support services (such as childcare provision), more potential labour force can sustain participation in the labour market. This enhances societal contribution, and enables poverty alleviation through work.

3. Driving Tripartite Collaboration in Innovative Poverty Alleviation and Providing Targeted Support for the Grassroots

The Budget proposes increasing the annual allocation for the “Women Empowerment Fund” to HK$30 million to fund community projects that help women balance work and family responsibilities, attend to their physical and mental wellbeing, and unleash their potential, thereby promoting holistic development. OHK supports such forms of social investment and believes that, against a backdrop of population ageing and rising social welfare expenditure, poverty alleviation policies must be more forward-looking. Initiatives such as the “Community Living Room” and the “Strive and Rise Programme” have demonstrated the effectiveness of tripartite collaboration among the Government, businesses, and NGOs in pooling resources and providing tailored support.

Since 2023, OHK has been appointed as one of the intermediaries in the third batch of the Social Innovation and Entrepreneurship Development Fund (SIE Fund). Across six application cohorts, around 30% of projects have applied technology to support vulnerable groups—for example, using AI to analyse user habits, triage cases, document changes before and after interventions, and offer personalised recommendations—significantly enhancing poverty alleviation outcomes. Based on this experience, OHK recommends that the Government allocate further funding to support the SIE Fund, enabling flexible poverty alleviation projects that align with targeted poverty reduction policies, respond swiftly to gaps in social services, and address diverse needs.

Conclusion

OHK recognises the Government’s efforts to enhance welfare measures amid fiscal surpluses and supports the Budget’s focus on promoting re‑employment, women’s empowerment and innovation and technology. However, in the face of an ageing population and ongoing economic transformation, policies must be more forward‑looking to ensure marginalised and vulnerable groups are not left behind. OHK recommends that the Government apply the “Living Wage” annually to improve workers’ conditions, and support underutilised labour through skills transfer, retraining and flexible employment arrangements. At the same time, the Government should drive tripartite collaboration through the SIE Fund to fill service gaps and strengthen community resilience. For instance, following the Tai Po fire, the Government provided long‑term housing arrangements, while businesses and community groups contributed material support and livelihood reconstruction—demonstrating that tripartite collaboration can deliver comprehensive protection for those affected. By fostering tripartite collaboration and innovation, we help vulnerable communities enhance their livelihoods amid challenging circumstances.

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