Pay raises remain flat as Hong Kong employers prioritise workforce stability

The average pay rise will remain at 4%.

In Hong Kong, 37.7% of organizations reported lower salary budgets for 2024, with the average pay rise remaining at 4%, WTW reported.

Employers have become conservative with their salary budgets, focusing instead on longer-term stability in their employee base after experiencing a period of high resignation and turnover.

Organizations that lowered salary budgets cited inflation, cost management concerns, and weaker financial results as the main reasons. Overall salary budget increases in Hong Kong are expected to remain at 4% in 2025.

As a result, 34.1% of companies have reduced their salary increase budgets from previous projections, whilst 41.1% have kept their budgets unchanged.

WTW also noted that salaries for roles in data science and business intelligence have surged by 8.3%.

Overall, Hong Kong's average voluntary staff attrition rate remains high at 14.1% over the past 12 months, compared to 8.7% in China, 7.9% in Japan, 9.7% in South Korea, and 11% in Taiwan. This is due to the continual emigration trend out of the city, leading to a shortage of labour in the workforce. 

In addition, 13.5% of companies plan to increase headcount in the next 12 months due to resumed recruitment across industries. Only 5.4% intend to reduce headcount, whilst 81.1% aim to maintain their current recruitment strategy.