Hsbc revises Hong Kong bankers' public school benefits
The bank aims to rationalise tuition subsidies, which range from EUR 20,000 to over EUR 30,000 per child per year, for top managers. Subsidies that would not be available for group staff in other financial centres
Key points
Hsbc Holdings Plc is reviewing its tuition fee relief package for employees in Hong Kong, which includes a $38,000 per child tuition fee contribution. Bloomberg reports this, citing internal sources. It is a long-standing benefit that covers public school fees for a large group of bankers in the Chinese metropolis, as part of a broader effort to standardise benefits globally and reduce costs.
The Node
The London-based bank is considering several options, including eliminating the benefit for new hires or reviewing the overall remuneration. Hsbc has been reviewing the benefit for some time and no decision has been made yet, the sources added.
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Hong Kong is the largest market for the British bank and the only major hub where middle and senior staff are entitled to a subsidy covering 95 per cent of tuition fees up to HK$220,000 (equivalent to approximately EUR 21700) per child in primary school and HK$300,000 (equivalent to EUR 32600) per child in secondary school per year.
Hundreds of employees have access to this benefit, which costs tens of millions of dollars annually, but since it is not offered in other major financial centres, it has become a source of tension for the London headquarters. For example, the benefit is not offered to employees of Hang Seng Bank Ltd., the Hong Kong branch recently acquired wholly by Hsbc.
The bank is committed to rewarding employees fairly and competitively, based on their performance, said an Hsbc spokesperson: "Hong Kong employees have access to numerous professional development opportunities and a competitive salary and benefits package.
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