Hong Kong wages rise 3.5% in June

However, unadjusted figures show a 7.5% drop in nominal payroll and a 7.2% drop in real payroll.

Hong Kong’s average wage rate rose by 3.5% YoY in June 2025 in nominal terms, and 1.4% in real terms after adjusting for inflation, according to the Census and Statistics Department (C&SD).

About 62% of surveyed companies reported wage increases, whilst 33% reported decreases. The remaining 5% recorded little to no change.

The payroll per person engaged—a broader measure that includes bonuses and irregular payments—increased by 3.6% YoY in nominal terms during the second quarter of 2025. After inflation, the real growth in payroll stood at 1.8%.

Sector-wise, all selected industry sections recorded nominal and real wage growth in June 2025. Nominal gains ranged from 2.9% to 4.9%, whilst real increases ranged from 0.8% to 2.7%.

For payroll in Q2, all sectors except retail posted both nominal (+1.8% to +10.9%) and real (+1.1% to +9.0%) increases. Payroll in the retail sector was virtually unchanged after accounting for inflation.

On a quarter-to-quarter basis, seasonally adjusted payroll per person engaged rose 1.2% in nominal terms and 1.1% in real terms compared to Q1 2025.

However, unadjusted figures show a 7.5% drop in nominal payroll and a 7.2% drop in real payroll, reflecting typical seasonal variations due to bonus payouts and changes in hours worked.

A government spokesman noted that both wages and labour earnings continued to increase in real terms, supported by steady economic growth. However, he cautioned that certain industries may continue to face pressure despite overall positive trends in labour demand and pay.