Hong Kong workers see 2.7% average pay rise in 2025, projected to increase to 3.5% next year

14th October 2025 – (Hong Kong) The Hong Kong Institute of Human Resource Management (HKIHRM) released its 2025 Salary Trend Survey Report on 14th October, revealing that employees in Hong Kong experienced an average salary increase of just 2.7% this year, marking a 0.5 percentage point decline from the previous year. The data reflects a more cautious approach by companies in adjusting salaries amid economic uncertainties. However, the institute expressed optimism for 2026, predicting a salary adjustment rebound to 3.5% as economic conditions improve, helping employers retain talent and maintain competitiveness.

The survey, conducted between January and September 2025, analysed responses from 167 organisations covering over 140,000 full-time salaried employees. Results showed that while the average basic pay increase reached 2.7%, after accounting for a 1.5% rise in the Composite Consumer Price Index from January to August, the real-term salary adjustment stood at only 1.2%. Despite this, 88.6% of participating companies implemented pay raises this year, though the proportion of companies freezing salaries rose to 11.4%—a 3.1 percentage point increase from last year. While 81.7% of employees benefited from a pay rise, 18.3% were affected by salary freezes. Former HKIHRM President and Executive Council Member Lawrence Hung Yu-yin noted that while the 2025 salary adjustment marked a recent low, over 80% of employees still received raises, underscoring companies’ efforts to balance operational needs with talent retention.

When determining salary adjustments, surveyed organisations considered multiple factors. “Company performance” remained the top priority, cited by 76% of respondents. Meanwhile, “Hong Kong’s economic condition” rose from fourth place last year to second this year, with its importance growing from 29% to 44%. In contrast, “employee performance” dropped to third place, declining from 59% last year to 40% this year.

In terms of organisational size, large companies with over 1,000 employees recorded the highest average salary increase at 2.8%, while medium-sized firms (100-1,000 employees) reported the lowest at 2.2%. By company type, multinational corporations achieved an average pay rise of 3.4%, surpassing local firms, which recorded a 2.6% increase. The report also included findings from 34 Macau-based companies covering approximately 6,400 full-time employees, where the average salary increase was 2.3%. Additionally, 427 companies across nine Greater Bay Area cities, representing over 180,000 employees, reported an average pay rise of 4.1%.