HSBC cancels school-fee perk for new staff in Hong Kong

By the Editorial Team · Friday, September 18, 2026

HSBC will phase out its annual school-fee subsidy of around $38,000 for new employees in Hong Kong, affecting both local hires and transfers, while maintaining the benefit for current directors and above. This move reflects broader cost-cutting efforts under CEO Georges Elhedery and aligns employee benefits with those of HSBC's recent acquisition, Hang Seng, amid the city’s high private education costs.

HSBC is set to end its longstanding school-fee subsidy for new employees in Hong Kong, eliminating a benefit valued at approximately $38,000 annually that was previously used to attract senior talent to the financial hub. The bank’s Asia co-heads informed staff of the change in a memo, according to an HSBC spokesperson, confirming that locally hired employees and those transferred from other locations will no longer be eligible for the subsidy to cover their children’s private school fees.

Current staff at the director level and above who already receive the subsidy, capped at HK$300,000 ($38,000) per year, as well as those with children born this year, will continue to benefit from the perk for now, a person familiar with the policy adjustment said. The phase-out marks a significant shift in HSBC’s compensation approach in Hong Kong, where expatriate families often rely on costly private international schools.

This decision aligns with a series of cost-cutting measures introduced since Georges Elhedery took over as CEO in 2024 with the aim of improving the bank’s competitiveness. Under his leadership, HSBC has undergone restructuring efforts including closing its equity capital markets division, scaling back merger and acquisition advisory services in Europe and the United States, and withdrawing from select markets.

HSBC has also discontinued its 160-year-old international manager programme, a leadership development scheme with notable alumni such as former CEO Stuart Gulliver. The bank's recent acquisition of Hong Kong lender Hang Seng for $14 billion plays a role in the policy change, as Hang Seng’s senior employees do not receive a comparable school-fee benefit. Additionally, employees based in London do not have access to such subsidies.

The cost of private education in Hong Kong remains among the highest globally, with prestigious secondary schools charging annual tuition fees well in excess of HK$200,000. For example, the American School charges HK$242,700 ($31,000) for the final years, while the Chinese International School lists fees exceeding HK$350,000 for senior levels.

In response to inquiries, an HSBC spokesperson stated the bank remains committed to providing employees with a fair and competitive total reward package tailored to the market. The removal of the school-fee subsidy will mark a notable change in the benefits landscape for staff based in one of the world's most expensive cities for international education.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.