Average salaries in Hong Kong are forecast to rise by 3 percent in 2021, recovering from 2.1 percent growth this year amid the socio-political tensions and the Covid-19 pandemic, a survey by ECA International shows.
However, real salary increases, excluding the impact of inflation, are expected to be only 0.6 percent in 2021, which is among the lowest in Asia, the London-based consultancy said in its annual salary trends report, which collected information from more than 370 multinational companies for 68 countries.
This compares unfavorably with expected rates of real increase in Singapore of 2.7 percent and may hinder the extent to which the Hong Kong economy may recover from the recession, said Lee Quane, Asia regional director at ECA.
Hong Kong's average salary growth in 2020 was almost half the 4 percent rate of increase provided in 2019, pulled down by two in five employees getting no rise at all, the survey found.
ECA expects a major drop in the number of local companies implementing salary freezes in 2021, but one in four may not get a salary increase.
Asian companies expect the average salary increase to jump to 4.3 percent next year from 3.2 percent in 2020, ECA said.