Hong Kong employees saw an average salary increase of 2.7 percent this year, down 0.5 percent point from last year, according to the latest pay trend survey released Tuesday.
After factoring in the composite consumer price index rise between January and August, the real wage adjustment stood at 1.2 percent, with employers expecting an average 3.5 percent pay rise in 2026.
The survey, conducted by the Hong Kong Institute of Human Resource Management (HKIHRM) between January and September this year, covered 167 organizations across 12 industries, representing over 140,000 full-time employees.
It found that 88.6 percent of employers granted pay increases this year, while 11.4 percent froze salaries — a 3.1 percentage points rise from last year and the highest level since 2022.
In terms of employees, 81.7 percent received a pay increase, while 18.3 percent experienced a pay freeze, up 1.5 percentage points from last year.
The logistics and transport sector recorded the largest average salary increase at 4 percent, reflecting the post-pandemic recovery of the shipping industry and growing competition for talent.
Former HKIHRM president and council member Lawrence Hung Yu-yun said the figures were reasonable given the current economic climate.
“Many logistics companies are competing for manpower as global trade picks up, but geopolitical uncertainties continue to create economic fluctuations,” he said.
He said firms are balancing operating pressures with talent retention while managing costs, describing the overall pay adjustment as fair.
The survey also found that 30 percent of companies have confirmed plans to raise salaries next year, while the remaining 70 percent have yet to decide — a higher proportion of undecided firms compared with last year
Hung attributed this to a “wait-and-see” attitude among employers facing uncertain economic conditions.
Nonetheless, he expressed cautious optimism about achieving the projected 3.5 percent pay rise in 2026, citing several positive factors such as the stabilization of the RMB, improved stock market sentiment, and a steady property market, which could boost business confidence and consumer spending.
Hung added that amid labor shortages and signs of economic recovery, companies should adopt a broader talent retention strategy rather than focusing solely on salary increases. Businesses can consider enhancing benefits and workforce planning to retain staff effectively, he suggested.
In Macau, 34 organizations across four industries reported an average 2.3 percent pay rise this year, with a 2.5 percent increase expected next year.
Across Greater Bay Area cities including Shenzhen, Guangzhou, and Zhuhai, the average salary increase stood at 4.1 percent, down 0.6 percentage points from 2024. Employers there forecast an average 4 percent pay rise for 2026.
