3 percent pay rise projected for HK workers in 2022

The Institute of Human Resource Management has projected a 3 percent pay increase for workers next year.

The institute based the projection on its poll of 115 companies in 16 sectors from January to September this year.

Of the 105 firms that responded, 37 percent said they will offer a wage increase to staff and 6 percent said they will freeze pay. The rest said they have not made a decision yet.

As for this year, the institute said workers received an average salary increase of 1 percent. Adjusted for inflation, the net pay rise was minus 0.4 percent.

Both figures are at their lowest for a decade.

“Covid-19 is not going away, and there’s no schedule or target date for businesses and travel to resume normal. Under such circumstances, people or enterprises tend to be more conservative,” said Lawrence Hung, the institute’s vice-president.

But he’s more optimistic about the business outlook next year, and believes firms are likely to spend more on wages and bonuses.

“To remain competitive in the labour market, and also to reward good performances (of the employees), I think they need a more reasonable and sizeable budget,” he said.