'Wages Expected To Rise By 3 Percent Next Year'

Local workers received an average pay rise of 3.6 percent this year, a new study has found, and most can expect a further wage hike of around 3 percent next year despite growing concerns about the health of the economy.

The Hong Kong Institute of Human Resource Management said of around 100 companies it surveyed in August and September, 85 percent of their staff received a pay rise, while the rest had their salaries frozen.

And while the average 3.6 percent increase workers enjoyed was significantly higher than the 3.2 percent rise the study found in 2018, most of this was offset by inflation.

For now, just over 51 percent of companies polled say they have plans to give staff another pay increase next year, while the rest have not finalised their budgets yet.

The institute’s vice president, Lawrence Hung said he’s optimistic that companies will have a good final quarter, with a boost in consumer spending during the festive season.

He also believes concerns about the state of the economy may be overblown, noting that the US-China trade war has been raging for months, and many companies have already made preparations.

The presidential election in the US next year, he believes, will also prevent an escalation in the trade conflict.

Hung also believes the Hong Kong’s workforce is quite balanced over various sectors, and those that are harder hit by the months of anti-government protests will recover in time.

“A few industries, like tourism, catering or retail will suffer in the short term, but in the longer term I think when visitors come back to Hong Kong I think there will be a slight rebound. That is why I think I will remain optimistic about the outlook”, he said.