Budget 2025: HK$2 transport subsidy scheme capped at 240 trips a month

Passengers of public transport over 60 years old will have their HK$2 rides limited to 240 trips per month, Financial Secretary Paul Chan Mo-po proposed in this year’s budget speech.

For trips below HK$10, eligible passengers will continue to pay HK$2, but for trips costing more than HK$10, they will have to pay 20% of the total fare.

The updated scheme preserves the policy intent while striking a balance on “enhancing the sustainability of the scheme and minimising the impact on the beneficiaries,” said Chan.

Government reimbursements to public transport operators is estimated to hit a record high of HK$5.4 billion in 2025-2026, more than tripled compared to HK$1.4 billion in 2021-2022, according to government figures.

Currently, the HK$2 subsidy scheme which allows all permanent residents over 60 years old to take public transport for two dollars per trip comprises 0.7% of the total government recurrent expenditure. 

Dai Fung-wa, 80, who lives in Mei Tin Estate in Tai Wei, said the new policy is unfair to people over 70 years old.

Dai said people between 65 and 70 years seldom take public transport after retirement. 

“You can still work in your 60s, but if you are over 70, you can only take care of your grandchildren at home,” Dai said.

Government figures show that 49.4% of residents aged between 60 and 64 years were in the labour force in the past three months, compared to 13.7% of those over 64 years old.

Government expenditure on the HK$2 scheme is more than doubled in 2022-2023 from HK$1.4 billion to HK$3 billion, when the eligibility age was lowered from 65 to 60, with extended coverage to include red minibuses, kaito ferries and trams.

Lam Chun-sing, Legco member for the Federation of Hong Kong and Kowloon Labour Unions said subsidising transport for people in their 60s can provide employment to fulfill society needs.

“Companies in distant areas such as the airport find it difficult to hire workers because of the high cost of transport. The scheme can improve the willingness for older workers to work in these areas without bearing the high transport cost,” he said.

He added that the scheme is also essential for low-income workers who may need to take multiple transits between different jobs.

Frankie Yick Chi-ming, Legco member for the Transport Functional Constituency said it is unnecessary to include people between 60 to 64 in the scheme, as most of them are still working. 

“We should allocate resources rigorously given the huge budget deficit,” he said.