A 3.8% YoY increase seen in Hong Kong’s average wage rate in December 2023

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Among all the industry sections surveyed, the transportation industry saw the highest increase in nominal and real wages at 5.2% and 2.5% respectively.

According to the wage and payroll statistics for December 2023 released by the Census and Statistics Department (C&SD), the average wage rate for all the selected industry sections surveyed, as measured by the wage index, increased by 3.8% in nominal terms year-on-year. After discounting the changes in consumer prices as measured by the Consumer Price Index (A), the overall average wage rate increased by 1.1% in real terms.

Year-on-year increases were recorded in all selected industry sections in December 2023 in both the nominal and real wage indices:

• For the nominal wage indices: ranging from 3.0% to 5.2%
• For the real wage indices: ranging from 0.3% to 2.5%.

About 64% of the companies reported increase in average wage rates in December 2023 compared with a year ago. A total of 32% of the companies recorded decrease in average wage rates over the same period. The remaining 4% reported virtually no change in average wage rates.

Year-on-year changes (%) in the nominal and real wage indices by selected industry section in December 2023

As for payroll, the index of payroll per person engaged for all the industry sections surveyed increased by 3.6% in nominal terms in the fourth quarter of 2023 over a year earlier. After discounting the changes in consumer prices as measured by the Composite Consumer Price Index, the average payroll per person engaged increased by 1.0% in real terms year-on-year.

Year-on-year increases were recorded in all selected industry sections in the fourth quarter of 2023 in both the nominal and real indices of payroll per person engaged:

• For the nominal payroll indices: ranging from 2.7% to 9.6%
• For the real payroll indices: ranging from 0.1% to 6.8%

Year-on-year changes (%) in the nominal and real indices of payroll per person engaged by selected industry section in the fourth quarter of 2023

Note: The wage rate includes basic wages and other regular and guaranteed allowances and bonuses. Payroll includes elements covered by wage rate as well as other irregular payments to workers such as discretionary bonuses and overtime allowances.

A Government spokesperson said that wages and labour earnings continued to record decent increases in the fourth quarter of 2023 over a year earlier. Looking ahead, tight labour market conditions will continue to support growth in wages and labour earnings in the near term.

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