Hong Kong’s salary increase falls in 2025, but will recover in 2026

The 3.7% increases this year are lower than APAC’s 5.1% average.

Hong Kong’s actual salary increase is at 3.7% in 2025, lower than in 2024, according to a report by advisory firm WTW.

This is lower than the 4% in 2024, and the 2025 APAC average of 5.1%.

Salary increases in the city are projected to rise back to 4% in 2026, according to the Salary Budget Planning Report by WTW released on 21 July 2025.

Employers in the Asia Pacific region are reportedly concerned about losing critical talent. Change of management, talent attraction, and employee experience are amongst significant issues, said Shai Ganu, managing director and global elader, executive compensation and board advisory, WTW.

“A recent survey conducted by WTW across APAC reveals companies are adapting to economic shifts through various strategies. Cost reduction emerges as a key approach, with nearly half considering operational cuts, including headcount reductions,” Ganu said.

Overall, the trends in the broader APAC reflect a cautious yet adaptive approach to workforce management amidst economic shifts, WTW said, with companies balancing between maintaining stability and addressing emerging challenges in the labour market.