Hong Kong employers do not predict any change in salary increases for 2013, but the Hong Kong workforce must not get too upset at the sound of this because inflation is dropping—meaning 2013 salaries will, in fact, be worth more than in 2012.
Hong Kong employers are predicting an average of 4.5% salary increases in 2013, according to the latest Salary Trends Survey from ECA International, which is based on information collected from 322 multinational companies in 65 countries—115 companies in Hong Kong. While this is the same as 2012’s increments, a lower anticipated inflation rate of 3% in 2013 will mean higher increases in spending power next year. Lee Quane, Regional Director, ECA International Asia explained, “The predicted annual salary increase of 4.5%, coupled with an anticipated annual inflation rate of 3%, means that employees will enjoy better purchasing power next year with their take home pay than this year with its 0.7% ‘real’ wage increases.”According to the ECA survey, employees in mainland China can expect to see salary increases of 8.5% on average. With inflation there predicted to be 3% as well, wage earners on the mainland can expect to see their money bags bulge in 2013.
Quane highlighted, “There is an ongoing skills shortage in China as foreign and local companies continue to chase rapid expansion growth targets. While employees in China still receive lower salaries than their Hong Kong counterparts, this skills shortage has forced companies to increase wages to retain qualified staff, narrowing the gap between Hong Kong and China-based employees.”
While pay increases in Singapore will be the same as Hong Kong, inflation is expected to be higher. Once this inflation is taken into account, Singapore workers will have the lowest rates of increase in real incomes in the region.
Paul Arkwright
Publisher
