Hong Kong salaries to rise 1.4% in 2020, still amongst Asia's lowest: study

This is well below APAC’s average salary increase of 3.2%.

Hong Kong workers can look forward to higher salaries in 2020, with the average increase expected to be 1.4% above inflation next year from the 1% rise that workers enjoyed in 2019, according to a report by market insights firm Eca International.

But this is well below the average salary increase of 3.2% in APAC. All of the top five countries with the highest projected salary raises are from the region.

“The average real salary increase in the APAC region is forecast to be 3.2%, significantly higher than the global average of 1.4% and nearly three times the European average of 1.1%. This is a trend that we have seen for many years now due to low inflation and rising productivity in many Asian economies, resulting in salaries growing rapidly compared to other regions,” said Lee Quane, Regional Director-Asia at ECA International.

Hong Kong’s nominal salary increase of 4% in 2020 is the same as in 2019, noted Eca International.

Despite nominal salary increases staying at 4% next year, the predicted drop in inflation from 3.0% to 2.6% means that employees in Hong Kong will see a slightly better overall salary increase in real terms this year,” noted Quane.

“Although this is still lower than the overall APAC average, the fact that the nominal increase will remain at 4% in 2020, as it was last year, is surprising given the backdrop of the current economic situation in Hong Kong. However, this underlines the fact that many companies in Hong Kong need to continue to attract and retain staff even in this period of economic adversity for the city,” the director added.

India and Vietnam led the list with real salary increases of 5.4% and 5.1%, respectively. Indonesia followed with a projected real salary increase of 4.6%, whilst Cambodia clinched fourth place with a 4.2% real salary increase in 2020. Thailand tied with European nation Ukraine in fifth place, with workers in both countries expected to enjoy a 4.1% raise.

South America’s Argentina remains firmly at the bottom of the table, with real salaries forecast to decrease by 22%, as the economic situation in the country goes from bad to worse.