Over a third of workers call for bigger pay hikes

Henry Siu

Employees should receive a pay hike of at least 5.5 percent in 2025, the Federation of Hong Kong and Kowloon Labour Unions suggested, saying over 30 percent of Hongkongers are dissatisfied with this year's raise.

Polling more than 1,100 people between August and October, the union found over 35 percent believe a five to seven percent increase would be reasonable, while 30 percent hope for a raise above seven percent.

"Around 63 percent of respondents received a pay rise this year, with an average increase of 4.5 percent. More than 35 percent of the respondents had a salary freeze and the remaining one percent had to take a salary cut, which is a significant improvement compared to last year," the survey report read.

"However, 33 percent of the respondents were dissatisfied with this year's salary adjustment, and 19.3 percent of respondents were very dissatisfied with the adjustment, showing the satisfaction of salary adjustment was generally low," the report added.

The survey also showed that over 56 percent of respondents' employers are recruiting, showing strong manpower demand.

But 32 percent said their company had a hiring freeze and nearly 12 percent said theirs laid off staff, hinting that labor importation and the economic environment dampened companies' willingness to recruit.

Federation chairman and lawmaker Lam Chun-sing said the 2025 salary increase should not be less than 5.5 percent given the economic forecast for Hong Kong and surrounding regions, as well as workers' expectations.

"Employees need a reasonable salary increase to maintain a reasonable quality of life and living standard. [A raise] increases employment aspirations, fosters social upward mobility and retains talent for companies," Lam said.

"I understand that some industries are facing difficulties, but considering the GDP has improved compared to the pandemic period, also referring to the [Census and Statistics Department's] data, we hope capable companies may increase salaries and share the results with workers."

Lam also said employers held back on local workers' raises due to the relaxation of requirements for importing labor.

Federation secretary-general and labor sector lawmaker Chau Siu-chung said workers in electrical engineering, construction and other industries are experiencing underemployment.

"Around 36.3 percent of respondents said they are planning on leaving their jobs. I think if employers do not give them a reasonable pay rise, there will be a serious brain drain," Chau said.

henry.siu@singtaonewscorp.com