Published: 18:43, October 14, 2025
Survey: HK employees expected to see 3.5% pay rise next year
By Gaby Lin in Hong Kong
Lawrence Hung Yu-yun (right), immediate past president and executive council member of the Hong Kong Institute of Human Resource Management, and Chen Junjian, CIIC Management Consulting Co Ltd’s consulting director of data services and benchmarking group, pose for a photo during a press conference on Oct 14, 2025, in Hong Kong. (GABY LIN / CHINA DAILY)

Hong Kong employees are likely to see an average pay increase of 3.5 percent in 2026, as companies step up efforts to retain talent and stay competitive, according to a local human resources body. Wage growth this year, however, fell short of expectations amid broader economic uncertainty.

The Hong Kong Institute of Human Resource Management (HKIHRM) on Tuesday released findings from its latest pay trend survey. The poll, conducted with Chinese mainland HR services provider CIIC Management Consulting Co Ltd (CIIC) from January through September, gathered data from 167 companies in the special administrative region, spanning 12 sectors and covering approximately 142,200 full-time employees.

Data showed that 81.7 percent of employees received salary increases since the beginning of the year, while the remaining 18.3 percent saw no change in pay. The logistics and transportation sector topped the list of pay rises with an average of 4 percent, driven by the rebound in aviation capacity and “rushed shipments” by traders amid tariff tensions. Banking and financial services, along with accounting and professional services, followed with rises of 3.6 percent and 3.5 percent respectively.

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However, overall average salary growth for the year stood at 2.7 percent, down 0.5 percentage point year-on-year and below last year’s forecast. After factoring in inflation, the real base pay increase came to 1.2 percent, making it the lowest level in recent years.

Lawrence Hung Yu-yun, an executive council member of HKIHRM, attributed the slowdown to a sluggish economic climate weighed down by global geopolitical uncertainties. “Amid the economic pressures and operational considerations in 2025, many companies have adopted a more cautious approach to salary adjustments,” he said.

“However, it is noteworthy that over 80 percent of employees still received pay increases, with no reported pay cuts. This reflects companies’ efforts to balance operational competitiveness with the need to retain talent,” Hung added.

Looking ahead to 2026, 68 percent of surveyed companies said they have yet to decide on next year’s pay adjustments, while 30 percent plan to raise salaries and 2 percent anticipate pay cuts, according to the survey.

READ MORE: Survey shows pay trends for HK private sector employees

Hung expressed cautious optimism about the wage outlook for next year, saying he believes employers’ confidence in the local economy will recover alongside an improving business environment, citing the rebounded property market and a pickup in retail activity.

He added that companies are expected to elevate salary adjustment rates to attract and retain talent so as to align with ongoing economic transformation. He suggested that employers respond to market dynamics by timely measures such as enhancing employee training, improving corporate benefits and fostering family-friendly workplaces.  

The survey also covered 34 companies in the Macao SAR and nearly 430 enterprises across nine mainland cities within the Guangdong-Hong Kong-Macao Greater Bay Area, including Shenzhen, Guangzhou and Zhuhai. It found that Macao employees received an average pay rise of 2.3 percent this year, while their mainland counterparts saw a 4.1 percent increase.

Chen Junjian, CIIC’s consulting director of data services and benchmarking group, said mainland companies are moving away from uniform salary adjustment to prioritizing high-performing employees and key talent, due to ongoing economic restructuring and intensifying talent competition.

“The trend reflects a growing emphasis on refined compensation management, enabling companies to enhance talent competitiveness while maintaining cost control.”  

Contact the writer at gabylin@chinadailyhk.com