Salaries to grow 4% in 2026 as employers ditch 'bidding wars'

Businesses are now pivoting to cost control and long-term value.

Hong Kong salary budgets are expected to grow 4% in 2026, reflecting business focus on cost control and long-term value, according to the 2026 Morgan McKinley Salary Guide.

Talent shortages persist in technology, healthcare, life sciences, and financial services, the report added.

Entry-level finance roles will see 5% to 8% increases, whilst mid-to-senior positions rise 8% to 12%, with transformation and data analytics roles commanding 15% to 18% premiums.

Banking merit increases range 3% to 5%, whereas professionals who change roles may receive 10% to 20% raises, with demand centred on risk, compliance, and front-office positions.

Technology salaries remained flat in 2025 as talent bidding wars eased. Contract software engineers receive 15% uplifts due to flexible hiring outpacing permanent recruitment.

Human Resources increments range 3% to 5%, with higher pay for skills in transformation, analytics, and regulatory alignment.

Sales and marketing roles see 0% to 3% growth, with digital marketing and ESG positions at 3% to 5%.

Supply chain salaries are stable, while strategic functions such as process improvement and strategic sourcing see 3% to 5% increases. Engineering projects face delays, creating underutilised talent.

Candidates prioritise job security and work-life balance, and government schemes like the Top Talent Pass and Quality Migrant Admission Scheme continue to attract international professionals.