Wage hike in Hong Kong predicted to hit 4.5% next year

Which industry posts highest increase?

According to the latest Salary Trends survey by ECA International, employees in Hong Kong can expect to see their salaries increase by an average of 4.5 per cent in 2014. The figure is the same as the uplift local employees received this year, but with inflation of 3.5 per cent forecast for next year, the projected salary increase amounts to just 1 per cent in real terms.

Increases are likely to be highest in the banking and insurance industries. Those working in transport and logistics are expected to receive slightly below-average uplifts.

"A wage increase of just 1 per cent after adjusting for inflation means that employees in Hong Kong will receive some of the lowest wage rises in the world next year in real terms," said Lee Quane, regional director – Asia, ECA International. "On a more positive note, this real wage increase is actually higher than the increase recorded in 2012, and roughly the same as the one recorded here for 2013."

Despite the marginal increase expected for Hong Kong, Asia as a whole is the region where employees will see the highest real wage increases.

ECA's 2013/2014 Salary Trends Survey reports current and projected salary increases for local employees. This year, it is based on information collected from 316 multinational companies across 64 countries and regions. 112 companies provided data on their Hong Kong-based staff.