The Hong Kong government is set to overhaul the current $2 public transport fare concession for the elderly, replacing it with a new "Two Dollars or 20%" scheme. Originally slated for implementation no later than September 2026, Secretary for Labour and Welfare Chris Sun Yuk-han announced yesterday that the revised scheme will now launch in April 2026—five months ahead of schedule. This earlier rollout is expected to save the public treasury an additional HK$260 million.
Under the new scheme, seniors will continue to pay just HK$2 for fares of HK$10 or less. For fares exceeding HK$10, they will pay 20% of the full adult fare. Additionally, a monthly cap of 240 subsidized trips will be introduced approximately one year after the scheme’s launch, in 2027. Modifying the Octopus card system to accommodate these changes is estimated to cost HK$60 million, with the government covering two-thirds of the expense and Octopus Cards Limited funding the remainder.
During a special meeting of the Legislative Council’s Finance Committee, Sun explained that the "Two Dollars or 20%" scheme, detailed in the latest Budget, aims to strike a balance between enhancing the program’s sustainability and minimizing its impact on beneficiaries. "The scheme retains the original intent of the policy while ensuring long-term viability," he said. For trips costing more than HK$10, seniors will enjoy a significant discount, paying only one-fifth of the full fare, capped at 240 trips per month.
Sun emphasized that after consultations with Octopus Cards Limited and public transport operators, the government confirmed the feasibility of advancing the timeline to April 2026. "We know people are concerned about the implementation schedule, and I can now confidently say the scheme will roll out early," he noted. This acceleration is projected to save an extra HK$260 million, on top of the HK$680 million in annual savings anticipated from the revised concession.
The proposed cap of 240 subsidized trips per month, however, will not take effect until about a year after the "Two Dollars or 20%" scheme begins, likely in 2027. Sun explained that this phased approach allows for quicker fiscal savings while ensuring system adjustments are thoroughly tested.
Legislators raised concerns about the trip cap’s relevance. Election Committee member Kan Wai-mun questioned its significance, arguing that few seniors exceed 240 trips monthly and urging faster implementation. Fellow Election Committee member Chan Pui-leung echoed this sentiment, estimating that fewer than 300 individuals surpass this threshold. He questioned whether the HK$60 million administrative cost to update the system justified the limited savings from capping usage.
Addressing these concerns, Sun clarified that the annual savings of HK$680 million far outweigh the one-time HK$60 million system upgrade cost, which he described as roughly one-tenth of the yearly fiscal benefit. The government will shoulder HK$40 million of the expense, with Octopus covering the remaining HK$20 million. "We need to ensure the system, including over 10,000 fare gates, operates flawlessly, which requires extensive testing," Sun said. He noted that synchronizing the "Two Dollars or 20%" scheme and the 240-trip cap would delay the entire rollout to October or November 2026, reducing potential savings. Hence, the government opted to implement the fare discount first.
Sun also addressed skepticism about the trip cap, acknowledging that only a small minority of seniors exceed 240 trips monthly. "Some individuals have exceptionally high usage, and while they’re a tiny fraction, we must set a reasonable limit on public funds without inconveniencing most users," he said. Even with the revised scheme, government subsidies will remain substantial, and Sun expressed confidence that it would not deter elderly travel. "Those who need to take longer trips will adapt and plan wisely," he added.
The "Two Dollars or 20%" scheme reflects the government’s effort to refine a popular policy while safeguarding fiscal responsibility, with the early launch underscoring its urgency to optimize public spending.