Hong Kong employees received an average pay rise of 2.8% in 2026, but inflation reduced the real increase to 1.1% — the lowest level since 2022, according to a survey by the Hong Kong Institute of Human Resource Management and CIIC Management Consulting Co., Ltd.
The survey covered 173 organisations across 12 business sectors and more than 180,000 full-time employees. It found that 92.6% of companies increased salaries this year, while the proportion freezing wages fell from 11.4% last year to 6.7%.
The survey projects an average pay rise of 2.9% in 2027, but that figure is not a confirmed award for employees. Lawrence Hung, the Hong Kong institute’s immediate past president and an executive council member, said 44% of the companies surveyed planned to increase salaries, while 56% had yet to decide.
Company performance was the main factor in pay decisions, cited by 77% of organisations, followed by Hong Kong’s economic conditions and competitors’ salary adjustments. Pay rises averaged 3% at small organisations, 3.1% at multinational companies and 2.6% at local companies.
Hung said businesses were more willing to pay more for employees with skills that could contribute to their operations.
He also said employers should look beyond pay alone to retain staff while salary budgets remain limited, suggesting skills training, better benefits and family-friendly measures.