- Average salary increase in Hong Kong forecasted to be 1.9% above inflation in 2019
- Singapore and China will both see higher salary increases than Hong Kong this year
- Average real salary increase in Asia-Pacific is forecast to be 2.7%, which is the highest globally
Hong Kong private sector workers are forecasted to see their salaries increase by 4% in 2019. After inflation, employees are expected to see a real salary increase of 1.9%.
According to the latest Salary Trends Survey by ECA International (ECA), Hong Kong sits near the bottom of the table for real salary increases in the APAC region, ranking 15th out of the 20 countries surveyed in the region.
Lee Quane, Regional Director, Asia, ECA International stated, “Salaries will increase at a rate of 4% in Hong Kong next year, which is in line with last year and comparable to similar economies in the region.”
In comparison to other established APAC economies such as Japan and Australia, Hong Kong compares favourably. Quane explained, “This is because as one of the most well-established economies in the region, salaries in Hong Kong are already substantially higher than most in the region and therefore do not increase as dramatically as many of the emerging Asian economies that are above them in the survey.”
Asian nations lead the way
Asian nations dominate the global top twenty highest real wage increases. 14 of the top 20 are Asian countries, and they also represent all but one of the top ten.
Quane highlighted, “The average real salary increase in the APAC region is predicted to be 2.7% in 2019—over double the global average of 1.2%. Low inflation and rising productivity mean that many Asian economies, and therefore local salaries, are growing rapidly.”
Singaporeans will receive an average real salary increase of 2.6% in 2019, ranking 11th out of the 20 APAC countries surveyed. This is higher than the real rate of increase that Hong Kong workers will receive in 2019 but lower than the 2.9% real increases that workers in Singapore saw in 2018.
Quane said, “Workers in Singapore are expected to receive a nominal salary increase of 3.9%—slightly lower than their counterparts in Hong Kong. Due to a lower level of inflation expected in Singapore in 2019, however, the real salary increase will be 0.7% higher than Hong Kong at 2.6%.”
Paul Arkwright
Publisher
