Workers in Hong Kong have seen their salaries increase 1.1 per cent so far this year, after adjusting for inflation – the lowest pay rise the city has logged since 2021, when its economy was still reeling from the Covid-19 pandemic, a new pay trend survey has found.
Residents in Hong Kong. File photo: Kyle Lam/HKFP.In its annual survey published on Thursday, the Hong Kong Institute of Human Resources Management (HKIHRM) found that local employees reported a pay rise of 2.8 per cent from January to September, but inflation reduced the real pay rise to just 1.1 per cent.
This is the lowest increase since 2021, when inflation-adjusted wages dropped by 0.4 per cent amid pandemic-era border controls and restrictions on movement.
‘A divergent landscape’The HKIHRM survey interviewed 108,300 employees in 173 companies across 12 sectors.
Company performance was the most influential factor behind pay adjustment decisions, ahead of local economic conditions and their competitors’ pay adjustments.
An empty storefront plastered with ads for property agents Photo: Kyle Lam/HKFP.HKIHRM executive council member Lawrence Hung said in a statement that Hong Kong’s economy “presents a divergent landscape,” with most companies adopting a “cautious outlook” as the environment continues to evolve.
“Coupled with the widespread adoption of generative AI and automation, manpower demand is undergoing structural restructuring, resulting in intensified competition for skilled talent,” he said.
The HKIHRM said it expects local salaries to grow 2.9 per cent in 2027, before accounting for inflation.