'HK Workers Forecast To Have 1.7 Percent Pay Rises'

The Institute of Human Resource Management said its survey of businesses pointed to a modest 1.7 percent pay hike for workers next year, but it also said many firms have not made a decision yet, fearful of the adverse impact brought by the ongoing Covid outbreak.

In a poll of 90 companies across different sectors, about 30 percent said it would offer a wage increase to staff and 8 percent said they were planning a freeze.

Among those that agreed to higher pay, the average increment is 1.7 percent.

The institute’s vice president, Lawrence Hung, also said there was an increase in businesses that have not yet made a decision compared with a year ago because of the coronavirus crisis.

“They all are very cautious, they are very prudent,” Hung said.

The survey also found that workers received an average pay rise of 1.4 percent this year – the lowest in 10 years.

The institute pointed out that employees were hit by a pay cut of 0.2 percent in 2003 when the economy was pummelled by the SAR epidemic.

Hung warned of the negative impact of lower pay. “[A pay cut could] damage the relationship and also it doesn’t help the team, doesn’t help the overall company image as well as the morale.”

He also said workers should brace themselves for the worst, warning that unemployment could go up further if the Covid outbreak is not under control.