HK keeps outpacing Guangdong and Macau in pay rises

Marcus Lum

Employees in Hong Kong saw an average salary increase of 3.5 percent this year, making it the second consecutive year that the figure has surpassed those of Macau and cities in Guangdong, according to a recent survey.

Conducted by Baptist University and Hong Kong People Management Association, it took in 280 organizations between July and September: 91 from here, 34 from Macau and 155 from Guangdong.

The findings revealed that Hong Kong's average salary increase rate of 3.5 percent outpaced the 2.7 percent seen in Macau and 2.3 percent in Guangdong.

The average starting salaries for fresh graduates this year are 5,843 yuan (HK$6,380) in Guangdong, HK$19,806 in Hong Kong, and 14,996 patacas (HK$14,560) in Macau.

Jobs in sectors such as research and development, information technology and engineering reported higher starting salaries, highlighting strong demand for technical skills.

Association vice president Ray Leung Wai-kai said this marks the first time Hong Kong's salary increase has exceeded those in Guangdong and Macau.

"Historically, salary increase rates in Guangdong cities have always been higher than Hong Kong until 2023," Leung said.

This year, the average starting salaries for fresh university graduates rose between 27.8 and 45.3 percent compared to 2019.

Manufacturing, sales, engineering, human resources and market development jobs saw increases of over 35 percent.

Huang Xu, director of the Centre for Human Resources Strategy and Development at the university, said the results indicate a trend of higher salary increases for employees here over the past two years compared to Guangdong and Macau, reinforcing our reputation as a hub for international talent.

Despite economic challenges, many companies are still eager to attract talent with competitive salaries.

"The relatively optimistic salary forecasts among employers in Guangdong, Hong Kong and Macau for the coming year reflect a more positive outlook on the economy," Huang said.

The average employee turnover rates for local firms were consistent with last year, ranging from 9.1 to 23.8 percent.

Among those who left voluntarily, the primary reasons included promotion opportunities, career development and compensation.

Immigration has consistently ranked as the third reason for departures by senior executives for four consecutive years.