In this file photo dated Feb 28, 2023, pedestrians use a crossing in Central, Hong Kong. (ANDY CHONG / CHINA DAILY)

Global manpower solution services provider ECA International expects Hong Kong employees can get a 1.7 percent real salary growth next year, slightly lower than this year and lower than Asia-Pacific’s expected average ratio of 2.2 percent in 2024.

But Hong Kong’s expected real wage growth rate next year is likely to be significantly higher than Singapore’s 0.5 percent over the same period.

ECA International explains workers in Hong Kong have benefited from below-average inflation rates compared to Asia-Pacific and global economies, leading to continued salary increases in real terms next year.

According to ECA’s Salary Trends Report, Hong Kong’s real wage growth was 1.8 percent in 2023, which was at the same level with Asia-Pacific economies, but significantly higher than the minus 1.5-percent contraction in Singapore in the same period

“As we look ahead, it is promising to see that the nominal salary increase in Hong Kong has rebounded to pre-COVID-19 levels in 2023 as expected,” said Mark Harrison, Asia general manager for ECA International.

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According to ECA’s Salary Trends Report, Hong Kong’s real wage growth was 1.8 percent in 2023, which was at the same level with Asia-Pacific economies, but significantly higher than the minus 1.5-percent contraction in Singapore in the same period.

“Due to a higher inflation rate (5.5 percent) witnessed in Singapore in 2023, salaries for workers fell by 1.5 percent in real terms in 2023. Workers in Singapore are worse off in real terms than they were in 2022, but we expect Singapore will see a return to real salary growth next year,” Harrison added.

Real salary increases in Asia-Pacific outperformed other regions this year, and expected to outperform other regions again next year. The average forecast increase rate in real terms in Asia-Pacific for 2024 is 2.2 percent which is more than double the global average rate of 1 percent, according to the ECA survey.  

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The survey analyses current and projected salary increases based on information collected from over 360 multinational companies in more than 70 locations around the world.