Pay rises are on the cards for professionals in Hong Kong next year, but the amount is still marginal compared to the rest of Asia.
That was the key finding of ECA International’s latest salary trends survey, which predicted that on an average, income levels are set to increase by 5% in 2015. The figure was found to be higher than the 4.5% increases that local employees received this year.
However, the survey identified that once inflation is factored in, staff in Hong Kong will see some of the lowest real pay rises in Asia.
“After inflation is taken into account, wages will rise 1.3% on average in Hong Kong next year – the third lowest ‘real’ salary increase in the region after Macau and Japan,” Lee Quane, regional director, Asia, ECA International, said.
“Nevertheless, the salaries of employees in Hong Kong will still increase more in real terms in 2015 than they did this year when they rose just 0.6% above inflation.”
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On average, salaries in the region were expected to increase by 7.2% in 2015, and 2.7% after accounting for inflation.
Pay rises in Mainland China were found to be still considerably higher than in Hong Kong. Respondents from the company stated they planned to reward their staff with an 8% salary increases again next year, with employees based in Guangzhou set to get the most generous uplifts.
Even after inflation, staff in China were found to be among the best off within the region and globally-expecting to see increases of 5.5% in real terms.
The survey also found companies in Taiwan and Singapore are anticipating raising salaries in 2015 at the same rate as they have this year (4% and 4.5% respectively). However, with inflation expected to rise in both locations next year, it added that employees will experience lower increases in real terms than in 2014.
The biggest pay rises in the region were forecast in Pakistan, with companies there anticipating 12% rises on average.
“Employees in Japan will see the region’s lowest wage hikes next year,” the report stated.
“While much of the 2.3% increase is likely to be eroded by inflation, many workers there will feel slightly better off in 2015 than this year when pay increases have, on average, been below inflation.”
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