Data from ECA International has found the average real salary increase for workers in Hong Kong is forecast to be 1.4 per cent above inflation in 2020, a slight increase on the 1.0 per cent rise that workers saw in 2019. Despite a nominal salary increase of 4.0 per cent, after factoring in the forecast inflation of 2.6 per cent, workers in Hong Kong will only see an average increase of 1.4 per cent in real terms – one of the lowest increases in the Asia Pacific region.
“Despite nominal salary increases staying at 4 per cent next year, the predicted drop in inflation from 3.0 per cent to 2.6 per cent means that employees in Hong Kong will see a slightly better overall salary increase in real terms this year,” said Lee Quane, regional director – Asia at ECA International. “Although this is still lower than the overall APAC average, the fact that the nominal increase will remain at 4 per cent in 2020, as it was last year, is surprising given the backdrop of the current economic situation in Hong Kong. However, this underlines the fact that many companies in Hong Kong need to continue to attract and retain staff even in this period of economic adversity for the city.”
ECA International’s annual Salary Trends Report analyses current and projected salary increases for local employees in 68 countries across the world.