Salaries rose an average of four per cent in real terms last year, despite the economic slump and rising unemployment, according to official figures.
The Census and Statistics Department said pay across all major sectors rose 3.2 per cent in nominal terms in the last quarter of 1998 compared with the same period in 1997. But deflation of 0.8 per cent meant the rise equated to four per cent in real terms, it said.
A spokesman said the rise was largely due to pay increases being made at the start of 1998 based on 1997 corporate performances, when business was still good.
But the department said the rise also reflected staff cutbacks in many companies, which retained more experienced and higher-paid staff.
Despite the continued increase in corporate pay, the department said there were signs wage growth in Hong Kong was coming down.
Wages rose 5.3 per cent year-on-year to the first quarter of 1998, 4.5 per cent to the second quarter and around three per cent to both the third and fourth quarters.
