Hong Kong real salaries to increase by 1.9 per cent in 2019, ranking city behind China, Singapore in survey
- Salaries in Hong Kong substantially higher than most in the region, do not increase as dramatically as in many economies above it in survey, says ECA International
- Workers in mainland China to see salaries increase at fastest rate in region, with pay of workers in Shenzhen to increase most rapidly
At 1.9 per cent, Hongkongers can expect one of the lowest real salary increases in Asia next year, along with a reduction in pay offered on recruitment and in various allowances, according to industry experts.
Employees in the special administrative region will lose out to those in mainland China, Malaysia and Singapore, among others, according to a report on annual salary trends published on Thursday by consulting firm ECA International.
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Although they will on average receive a nominal pay rise of 4 per cent, Hongkongers’ real salary increase will amount to 1.9 per cent after deducting for inflation. This is higher than the 1.8 per cent increase in 2018.
“In nominal terms, Hong Kong's salary increases are not ‘poor’. The 4 per cent rate of increase is higher than Macau, Singapore, Taiwan, Australia, New Zealand and Japan,” said Lee Quane, regional director for Asia at ECA.
“Salaries in Hong Kong are already substantially higher than most in the region and, therefore, do not increase as dramatically as in many of the emerging Asian economies that are above them in the survey,” said Quane.
Last year too, ECA’s annual report on salary trends forecast a nominal pay rise of 4 per cent in 2018 in Hong Kong. The real salary increase was pegged at 1.8 per cent. In April this year, the Hong Kong government did increase civil servant pay by 4.06 per cent, tracking market pay rise levels. With inflation at between 2.1 per cent and 2.4 per cent in the second quarter, the real salary increase came to about 1.6-1.9 per cent, in line with the ECA forecast.