Hongkong Post scraps permanent contracts for new staff amid financial strain

Hong Kong Post has announced it will no longer offer permanent contracts to new employees, as part of cost-cutting measures amid declining financial performance. Postmaster General Leonia Tai Shuk-yiu explained on Tuesday that new hires who pass probation in September or later will receive two-year contracts, akin to civil service terms, due to the organization's dwindling mail volume.

"We must plan our human resources carefully, making timely adjustments to ensure our resources are utilized effectively," she stated. "Offering permanent contracts is not feasible at this time, but we aim to minimize the impact on these employees." Approximately 200 individuals will be affected by this decision.

Tai emphasized that employees' status as civil servants and their entitlement to welfare benefits during the two-year contract period would remain unchanged. The postal service currently operates from Monday to Friday, and Tai hinted that the frequency of deliveries might be reviewed to determine its necessity. Additionally, underutilized post offices could be closed or have their operating hours reduced to further curb expenditure.

Mail volumes handled by Hongkong Post have been on a decline, with figures dropping from 1.24 billion items in 2018-19 to 611 million in 2024-25. The self-financing postal service has suffered eight consecutive years of losses. In an effort to sustain operations, the Legislative Council recently approved a HK$4.6 billion grant to support the trading fund over the next three years, while authorities prepare a detailed report on Hongkong Post's long-term development strategy.