Hong Kong workers will receive one of the lowest salary increases in Asia next year according to ECA International’s salary trends survey. Employees can expect an increase of 4% for the third consecutive year in 2018. With inflation predicted for the territory at 2.2% next year, that translates to a mere 1.8% real-terms salary increase down from 2% in 2017.
According to the survey covering 20 countries in the region, Hong Kong ranked 16th, Malaysia 14th and Singapore 9th with a real salary increase of 2.7%. India received the highest real wage increase in Asia for the second year in a row with a real rate of increase of 4.9%. ECA’s salary trends report analyses current and projected salary increases for local employees based on information collection from 260 multinational companies in 72 countries across the world.
“Although the real salary increases we expect to see next year are low compared to the rest of the region, on a global scale, salaries in Hong Kong are still rising relatively fast,” said Lee Quane, regional director of Asia at ECA International in a press statement. “In addition, the increases are also respectable compared with other developed economies. This reflects the need for companies to continue to use pay increases as a means of attracting and retaining staff in the city.”
China remains in the top 10 countries globally offering the highest real-terms salary increase in 2018 at 6%. Workers in Macau can expect similar increases to that of Hong Kong and lower inflation in Taiwan means their salaries will grow by 2.6% in real terms.
Despite Hong Kong offering one of the lowest salary increases in Asia the region overall offers the best increases globally. In fact countries in Asia hold eight of the top 10 spots in the global rankings of real salary increases with all locations expecting to receive above-inflation salary increases.
The global top spot for real salary increases is taken by Argentina, which is forecast to receive an impressive 7.2% real salary increase in 2018. Salary increases remained low in Europe. Germany can expect real wage growth of 1.2%, France 0,9% and the UK the lowest in the region can expect a 0.2% real wage increase. Uplifts for the USA and Canada are set to remain steady, at 0.9% and 1.1% respectively.