HK real wage growth hits 4-Year low

The Hong Kong Institute of Human Resource Management's research on Greater Bay Area salary trend shows a slight overall pay increase in the first three quarters of this year.

In Hong Kong, employees see an average pay rise of 2.8 percent, but after adjusting for inflation, real wage growth hits a four-year low.

Between January and September, the institute surveyed over 170 organizations across 12 sectors in Hong Kong, covering more than 180,000 full-time employees.

The findings show an average salary increase of 2.8 percent, up 0.1 percentage points from last year.

However, due to Middle East tensions and rising oil prices, the real base salary adjustment falls to 1.1 percent after deducting the consumer price index increase, which marks the lowest level since 2022.

Looking ahead, the salary increase is expected to edge up by another 0.1 percentage point next year.

Former president of the institute, Ray Kung, says while some sectors are recovering, high global interest rates and economic uncertainties make employers more cautious about salary adjustments.

Kung adds to retain talent, companies should not rely solely on pay rises. Instead, they need to enhance training, improve benefits, and implement family-friendly policies to better plan for manpower needs.

The survey also covers over 180,000 employees from 420 organizations in major mainland cities within the Greater Bay Area. These cities see an average salary increase of 4.2 percent.

After adjusting for inflation, the real base salary adjustment remains at 3.4 percent, with the high tech, internet, energy and chemical sectors recording higher increases.