Modest salary increases beat last year's figures

Hong Kong employees averaged salary increases ranging from 2.7 per cent to 3.8 per cent this year, with employers predicting higher percentages next year, according to a survey.

Consulting group Hewitt Associates yesterday said solid economic growth in Hong Kong and China this year had been positive for salaries.

Respondents in Hong Kong reported the percentage increase in salaries for management would range from 4 per cent to 4.3 per cent next year.

'While Hong Kong's salary gains may appear modest compared to those on the mainland, they nonetheless represent a significant improvement over the 2.4 per cent awarded by Hong Kong employers in 1999,' Hewitt consultant Vincent Gauthier said.

Hewitt surveyed 110 companies in Hong Kong, including foreign and domestic concerns. In China, the firm polled 207 companies mostly in Shanghai, Beijing and Guangzhou.

In the SAR, Hewitt found banking and financial services companies were the most optimistic about increases next year, projecting rises at all staff levels.

This year in Hong Kong manual employees received an average increase of 2.7 per cent compared with a 3.8 per cent average granted to senior management executives.

Base salary increases for manual workers in Beijing averaged 6.5 per cent, Shanghai 6.3 per cent and Guangzhou 5.2 per cent. Top management saw an average 7.8 per cent, 9.4 per cent and 8.3 per cent.