Opens in a new tab
News

Litigation Costs Update: Revised Solicitors’ Hourly Rates and Lump Sum Assessment Figures with effect from 1 April 2026

The Judiciary has revised the Solicitors’ Hourly Rates (SHRs) and Lump Sum Assessment figures with effect from 1 April 2026. The new rates apply to legal work undertaken on or after that date.

The revisions are intended to narrow the gap between actual legal costs incurred and the costs recoverable from an unsuccessful party. As a result, parties involved in litigation should reassess their costs exposure and litigation strategy.

Revised Solicitors’ Hourly Rates

In Hong Kong, a successful party will generally not recover all of its legal costs from the unsuccessful party. Instead, recoverable costs are assessed through a process known as party and party taxation, during which the court considers whether the work undertaken was necessary and reasonable.

The courts use Solicitors’ Hourly Rates (SHRs) as a guideline when assessing the recoverable costs.

The revised SHRs reflect increases of approximately 7% to 8% across most levels of experience in both the High Court and District Court.

Post-Qualification Experience (PQE)High CourtDistrict Court
Old (HK$)New (HK$)Old (HK$)New (HK$)
>15 years5,8006,2403,8604,160
9-15 years5,2005,6003,4603,730
7-8 years4,5004,8403,0003,220
5-6 years3,9004,2002,6002,800
2-4 years3,2003,4502,1302,300
Newly admitted2,6002,8001,7301,860
Trainee Solicitor1,7001,8301,1301,220
Litigation Clerk1,3001,400860930
Law Cost Draftsman1,8001,9401,8001,940

Readers should refer to the relevant Law Society circulars Circular 26-197 (PA) and Circular 17-1017 (PA) for the complete schedules.

Revised Lump Sum Assessment figures

Lump sum assessments by the courts provides a simplified alternative to a full taxation exercise. Instead of assessing every item of work undertaken, the court applies fixed reference figures for specific categories of proceedings.

No.Type of CaseScale / BasisHigh CourtDistrict Court
Old (HK$)New (HK$)Old (HK$)New (HK$)
1.Charging Order Nisi & AbsoluteParty and Party9,1009,8006,1006,600
Indemnity10,40011,2007,0007,500
Solicitor and Client11,70012,6007,9008,400
2.Mortgagee Actions (Order 88)Party and Party32,50035,00022,00023,400
Indemnity37,00039,80025,00026,600
Solicitor and Client42,00045,20028,00030,200
3.Charging Order for sale of land under Order 50 rule 9A (whole proceedings)Party and Party30,00032,30020,00021,600
Indemnity34,00036,60023,00024,400
Solicitor and Client39,00042,00026,00028,000
4.Money Lenders’ Actions (Order 83A)Party and Party15,60016,80010,50011,200
Indemnity17,90019,30012,00012,900
Solicitor and Client20,30021,90013,60014,600
5.Actions arising out of hire-purchase or conditional sale agreements (Order 84A)Party and Party15,60016,80010,50011,200
Indemnity17,90019,30012,00012,900
Solicitor and Client20,30021,90013,60014,600
6.Garnishee Order Nisi & AbsoluteParty and Party5,2005,6003,5003,800
Indemnity6,5007,0004,4004,700
Solicitor and Client7,8008,4005,2005,600
7.Three-minutes chambers hearingSolicitor1,0401,200700800
Trainee650700450500
Legal Executive500540350400

Readers should refer to the relevant Law Society circulars Circular 26-220 (PA) and Circular 18-11 (PA) for the complete schedules.

Practical impact on litigants

The revisions mean that parties involved in litigation face potentially greater adverse costs exposure if proceedings become fully contested. At the same time, successful litigants may be able to recover a greater proportion of their legal costs than before.

The figures are used as guidelines only, and the court retains discretion to determine recoverable costs based on the facts of each case.

Nevertheless, the revised figures provide a useful indication of the increasing costs associated with litigation in Hong Kong and should be factored into any dispute resolution strategy.

Our firm regularly advises businesses and individuals on litigation strategy, costs exposure, settlement options and taxation proceedings. If you require advice regarding a dispute or the likely recovery of legal costs, please contact us for a confidential discussion.

Contact

Ashima Sood
+852 2555 9009
ashimasood@nanwanis.com

Follow us on LinkedIn
Back to News & Insights