Moderate pay rises predicted for HK workers

17 january 2013

 

Hong Kong’s workers are expected to receive pay increases of between 4.1 and 4.5 percent in 2013, virtually mirroring actual average pay increases of between 4.1 and 4.2 percent that workers received in 2012, according to a pay trend survey.

Economic uncertainties in 2012 had kept the pay increases to slightly below the 4.8 to 5.1 percent levels as predicted by an earlier survey at the start of this year. The latest survey of 91 enterprises with 77,600 employees in 12 sectors was carried out by the Hong Kong People Management Association (HKPMA) in collaboration with the Centre for Human Resources Strategy and Development at Baptist University.

Survey respondents from 59 enterprises said that pay increases next year would be at about the same level of increases this year.

The survey revealed that company profits and staff performance remained the standards for determining pay increases, but the companies paid little attention to inflation or job seniority.

HKPMA President Pauline Chung attributed the moderate pay increases to the uncertain external economic outlook, such as the Euro debt crisis and the US Federal Reserve’s quantitative easing III (QE 3).

The respondents’ replies indicated that the companies are becoming more cautious as well as becoming worried about the impact of the statutory minimum wage hourly rate, which is expected to rise from HK$28 to HK$30 next year, said Felix Yip, research fellow of the centre.