Most HK firms will raise pay by just 3pc to 6pc

With Hong Kong inflation at close to 6 per cent, many employees anticipating a wage increase to keep pace with rising prices are out of sync with their employers.

According to the 2011 Hays Salary Guide, 59 per cent of Hong Kong employers intend to increase salaries in their next review by between 3 per cent and 6 per cent, while 18 per cent will offer increases above 6 per cent. Meanwhile, 23 per cent intend to increase salaries by less than 3 per cent.

Feedback from 541 employees in Hong Kong and China showed that 26 per cent expect their salary to rise by less than 3 per cent. Meanwhile, 29 per cent expect an increase of between 3 per cent and 6 per cent, and 45 per cent expect an increase above 6 per cent.

Emma Charnock, regional director of Hays in Hong Kong and China, says plans of employers to raise salaries vary across industries. 'Middle office roles such as compliance and risk in the banking and finance sectors, non-banking IT and mainland manufacturing segments that are showing growth, are the main sectors in which employers are planning to raise salaries,' says Charnock.

Salary increases, she adds, are also on offer for specialist roles or positions for which there is a limited pool of viable candidates.

Where employers and employees differ on the amount of a salary increase, Charnock says an increasing number of employers are offering work-life balance improvements as an alternative.