Total Rewards Asia Summit 2024 Singapore
Hong Kong's average wage rate rose by 3.5% YoY in June 2023

Hong Kong's average wage rate rose by 3.5% YoY in June 2023

閱讀中文版本

After discounting for inflation, the average wage rate increased by 1.4% in real terms.

According to the figures released on 26 September 2023 by the Census and Statistics Department (C&SD), the average wage rate for all the selected industry sections surveyed, as measured by the wage index, increased by 3.5% in nominal terms in June 2023 over a year earlier, faster than the increase three months ago.

After discounting for inflation, the average wage rate increased by 1.4% in real terms.

Year-on-year increases were recorded in all selected industry sections in June 2023 in both the nominal and real wage indices, ranging from 2.5% to 6.0% and 0.3% to 3.8% respectively.

About 63% of the companies reported an increase in average wage rates in June 2023 compared with a year ago. A total of 33% of the companies recorded a decrease in average wage rates over the same period. The remaining 4% reported virtually no change in average wage rates.

As for payroll, nominal payroll per person engaged, which includes basic wage, discretionary bonuses and other irregular payments, increased by 3.2% year-on-year in the second quarter of 2023, also faster than the increase in the preceding quarter. After discounting for inflation, payroll per person engaged increased by 1.1% in real terms.

In the second quarter of 2023, year-on-year increases were recorded in all selected industry sections in the nominal indices of payroll per person engaged, ranging from 0.1% to 9.9%. For the real payroll indices, year-on-year increases ranging from 0.5% to 7.7% were recorded in all selected industry sections surveyed, except the social and personal services section where a year-on-year decrease of 1.9% was recorded.

A Government spokesperson said that the year-on-year increases in nominal wages and labour earnings accelerated further in the second quarter of 2023 alongside the continued improvement in labour market conditions. Looking ahead, the ongoing recovery of inbound tourism and local consumption should continue to drive labour demand and provide support to wages and labour earnings in the near term.

Both wage indices and payroll indices are compiled quarterly based on the results of the Labour Earnings Survey (LES) conducted by the C&SD. Wage index only covers employees up to the supervisory level (i.e. not including managerial and professional employees), whereas payroll index covers employees at all levels and proprietors actively engaged in the work of the establishment.


Lead image / Shutterstock

Follow us on Telegram and on Instagram @humanresourcesonline for all the latest HR and manpower news from around the region!

Free newsletter

Get the daily lowdown on Asia's top Human Resources stories.

We break down the big and messy topics of the day so you're updated on the most important developments in Asia's Human Resources development – for free.

subscribe now open in new window