Hong Kong employees to receive 4.5% pay hike next year

Grass will be greener for these industries.

Employees in Hong Kong can expect to see their salaries increase by an average of 4.5 per cent in 2014, according to the latest Salary Trends survey by ECA International.

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.

While companies in Singapore are also anticipating 4.5 per cent salary increases next year, inflation is predicted to be lower than in Hong Kong. As a result, employees there will feel better off.

Employees in mainland China look set to experience some of the highest wage rises in the region, both before and after inflation is factored in. Companies there predict salary increases of 8 per cent.

Allowing for inflation of 3 per cent in 2014, Chinese workers will see a 5 per cent increase in real terms – the highest in Asia and among the highest worldwide. Employees in Guangzhou and Shenzhen are likely to receive slightly higher increases than their counterparts in Shanghai and Beijing.