Hong Kong workers' salaries expected to increase 4.2% in 2017

It's the 3rd highest predicted increase in Asia Pacific.

According to the latest issue of the annual research by Mercer, a global consulting leader, a majority of the Asia Pacific’s emerging economies are forecasting higher salary increase percentages for 2017 than 2016 with projected rises particularly bullish in countries such as India and Vietnam.

Mercer unveiled the results of the ‘Compensation Planning for 2017’ for the region including predictions for hiring intentions and pay increases across Asia, Middle East and Africa. Figures and forecasts are based on Mercer’s Annual Total Remuneration Survey (TRS), and its bi-annual Market Pulse Surveys.

In 2017, the highest salary increases are forecasted for India (10.8%) and Vietnam (9.2%) while financial hubs Hong Kong and Singapore are forecast to see a 4.2% and 4.1% increase, respectively.

Japan is forecasted to receive the lowest increase of 2.2%, followed by New Zealand (2.8%) and Australia (2.9%). Notably though, real wage growth (salary increase minus inflation rate) has also been steadily rising in the region, often reaching double digits in emerging markets despite inflation at its lowest for most countries. And, while forecasts vary quite widely across specific industries, the strongest push is likely to come from the life science and chemical sectors. (Figure 1 and 2 in notes).