Education benefit subsidises most of the school fees of eligible employees' children
HSBC is weighing plans to scrap an education subsidy for new hires in Hong Kong as part of a wider overhaul of staff benefits and cost-cutting across the group, according to various reports.
The benefit is offered to eligible mid-level and senior staff in Hong Kong, where they are entitled to a subsidy that covers 95% of school fees, up to HK$220,000 per child annually for primary school and HK$300,000 per child for secondary school.
But the policy is under formal review as the London-headquartered lender seeks to standardise benefits globally and rein in expenses, Bloomberg reported, citing sources familiar with the matter.
According to the report, the London-headquartered bank is considering options including scrapping the perk for new joiners or adjusting total compensation.
The review comes as hundreds of employees use the scheme, costing the bank tens of millions of dollars a year, according to the reports. And because the subsidy is concentrated in Hong Kong, it has become a source of tension with the lender's lender's London head office.
"We are focused on rewarding our employees fairly and competitively, on the basis of their performance," a spokesperson from HSBC told The Guardian in a statement.
"HSBC employees in Hong Kong have access to broad professional development opportunities and a competitive pay and benefits package."
The scrutiny of the school-fee subsidy also comes as HSBC undertakes a major restructuring under chief executive Georges Elhedery.
The bank is thinning management layers, cutting thousands of roles and simplifying structures in a bid to meet aggressive cost and profitability targets, according to Bloomberg and coverage by Yahoo Finance UK.
HSBC said in February it expects to hit a US$1.5 billion cost savings target in the first half of 2026, six months earlier than previously planned.
