Hong Kong authorities plan to gradually increase university fees by 17.6 percent over the next three years, at an average of 5.5 percent per year, representing a total increase of HK$7,400 ($948). By 2027, tuition fees will amount to HK$49,500, according to a government press release issued on Thursday.

Local students at eight publicly funded universities in Hong Kong currently pay annual tuition fees of HK$42,100 to study for a bachelor’s or master’s degree — a cost that has remained the same for the last 27 years.

With the new adjustments to the tuition fees, the recovery rate is expected to improve slightly to 13.4 percent in the 2027-28 academic year, said the spokesperson

ALSO READ: HK set to hike university fees 5 to 9% annually for 3 years starting in 2025

Over the next three years, for local undergraduates and those pursuing postgraduate studies and research programs in Hong Kong, tuition fees will increase to HK$44,500 for 2025-26, HK$47,000 for 2026-27, and HK$49,500 for 2027-28.

Additionally, fees for students on government-funded sub-degree projects — currently only provided by the Education University of Hong Kong — will be increased from the current HK$15,040 to HK$17,800 in 2027, a total rise of HK$2,760.

Hong Kong’s Consumer Price Index, which measures the impact of rising price levels on local families, has increased by 40 percent cumulatively since the last adjustment was implemented 27 years ago in the 1997-98 academic year, a spokesperson said in the government’s press release.

ALSO READ: HK newly appointed school heads attend lecture on national security law

As university programs are publicly funded, the government set a target cost recovery rate for tuition fees of 18 percent in the early 1990s. However, due to changing economic circumstances, the cost recovery rate has continued to decline in recent years and is projected to drop to 12.5 percent in the 2024-25 academic year.

With the new adjustments to the tuition fees, the recovery rate is expected to improve slightly to 13.4 percent in the 2027-28 academic year, said the spokesperson.

The government also provides two sponsored programs for junior college students facing financial difficulties; arrangements for subsidies and tuition loans will be adjusted from next year, the spokesman added.