HK employees keep conservative outlook for 2026 pay raises

Hong Kong employees are holding relatively conservative expectations for salary increases in 2026 compared to the previous year, according to lawmaker Lam Chun-sing, who also chairs the Federation of Hong Kong and Kowloon Labour Unions.

Speaking on a radio program today, Lam attributed this cautious mindset primarily to ongoing inflation and mounting living cost pressures, compounded by the civil servant salary freeze that has dampened overall sentiment.

His comments came after a union survey of 1,383 employees conducted from June to September, which recommended that workers receive at least a 3.5 percent pay hike next year.

Lam explained that employees’ expected salary increase has dropped from the previous range of 5 to 7 percent to 3 to 4 percent, a shift believed to be linked to the persistently high unemployment rate and concerns about difficulty finding new jobs after being laid off.

He revealed that 46 percent of respondents received a pay rise last year, while 48 percent saw their salaries frozen, with only a small minority facing cuts—largely due to the broader economic environment and the civil service freeze.

He added that even with modest overall inflation, fare and rent hikes have eroded the purchasing power of those with frozen salaries, lowering their living standards and raising financial stress.

Some employers have also slowed down hiring, leading to employees overworking without corresponding compensation.

Additionally, the industries expecting salary increases include civil servants and public institution employees, as well as workers from the catering, maintenance, and engineering sectors.