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2024 Guangdong-Hong Kong-Macao Greater Bay Area Pay and Benefits Survey Reveals that Hong Kong’s Salary Increase Rate Once Again Exceeds that of Guangdong and Macao

24 Oct, 2024

The Centre for Human Resources Strategy and Development (CHRSD) of the HKBU School of Business released the results of the “2024 Guangdong-Hong Kong-Macao Greater Bay Area Pay and Benefits Survey” on 24th October 2024 at Hong Kong Baptist University. According to the results, the average salary increase rate for Hong Kong employees in 2024 is 3.5%, which is the second consecutive year that the figure exceeded that of cities in Guangdong and Macao. These are the only two years in the past three decades that Hong Kong’s salary increase rate has surpassed that of Guangdong cities.

Despite the unfavourable economic environment in recent years, employers in Guangdong, Hong Kong and Macao forecast a relatively optimistic salary increase rate of 3.8% to 3.9% for the coming year. The survey also found that the average starting salaries for fresh university graduates in Hong Kong across various industries have accrued an increase of 27.8% to 45.3% (an average of 33.9%) since 2019.

Survey Covers Over 240,000 Employees in the Greater Bay Area

Hong Kong Baptist University (HKBU) and the Hong Kong People Management Association (HKPMA) started to conduct joint salary and benefits surveys in Hong Kong, Macao and the Mainland China back in 1995. Since 2019, the CHRSD and the HKPMA have invited the Research Center for Human Resources Management of the School of Business Administration at the South China University of Technology, and the Talent Development and Management Association of Guangdong to jointly launch the “Guangdong-Hong Kong-Macao Greater Bay Area Pay and Benefits Survey”. Subsequently, the Faculty of Business Administration at the University of Macau and the Macau Greater Bay Area Human Resources Association joined to conduct a professional survey comprising academic institutions and human resources organisations in the three locations. The survey aims to help businesses and government agencies in the Greater Bay Area (GBA) understand the latest salary, benefits and talent mobility information across different cities, industries, and job positions in the region.

This year’s survey in the GBA was conducted between July and September 2024. A total of 280 organisations, including 91 from Hong Kong, 34 from Macao and 155 from cities in Guangdong Province (including Dongguan, Foshan, Guangzhou, Huizhou, Jiangmen, Shenzhen, Zhongshan, and Zhuhai) participated in the survey, covering more than 240,000 employees. Participating organisations provided employee salary information from July 2023 to June 2024 through an online questionnaire and forecasted salary trends for 2025.

Hong Kong’s Salary Increase Surpasses that of Guangdong and Macao

The survey found that Hong Kong’s average salary increase rate this year is 3.5%, while that in Macao is 2.7 and 2.3% in cities in Guangdong Province. In fact, since the relevant survey began 30 years ago, salary increase rates in Guangdong cities have always been higher than that of Hong Kong until last year (2023), when Hong Kong’s salary increase rate surpassed that of Guangdong cities for the first time.

The survey also showed that employers in Guangdong, Hong Kong and Macao have relatively similar views on salary trends for the coming year, with the expected average rate of salary increase in all three regions being 3.8% to 3.9%.

Prof. Xu HUANG, Director of the CHRSD of the HKBU School of Business, said: “The survey found that over the past two years, salary increases for employees in Hong Kong have been higher than those in Guangdong and Macao. It reflects that Hong Kong remains a hub for international talent, and more companies are willing to attract talent with high salaries even though they are facing the challenges of an economic slowdown. The relatively optimistic salary forecast among employers in Guangdong, Hong Kong and Macao for the coming year reflects a more positive assessment of the economic outlook.”

Individual Industries Show Higher Pay Rise

Given the sluggish economy over the past few years, the survey found that the majority of industries recorded a drop in salary increase rates this year compared to a year ago. However, companies in the GBA with outstanding business performance are still able to offer a salary increase of over 5%.

It is worth noting that even though the cities of Guangdong Province recorded a relatively lower salary increase rate this year in the region, certain industries, such as medical/pharmaceutical/health and manufacturing, still reported increased rates of 3.3% and 2.8% respectively. The forecasted salary increase in 2025 for the medical/pharmaceutical/health and energy/chemical/environmental protection industries is more optimistic, reaching 7.8% and 5.0% respectively, indicating that these industries enjoy better development prospects despite the economic downturn.

In addition, the average starting salaries this year for fresh graduates from Guangdong, Hong Kong and Macao are RMB5,843, HK$19,806, and MOP$14,996 respectively. Positions in industries such as research and development, information technology and engineering recorded higher starting salaries, indicating a strong demand for additional manpower in these sectors.

Starting Salaries of Hong Kong Graduates Up Over 35% in recent years

This year’s average starting salaries for Hong Kong’s fresh university graduates across different industries have accrued an increase of 27.8% to 45.3% (an average of 33.9%) compared to 2019. Positions in manufacturing, sales, engineering, human resources and administration, and market development recorded an increase of more than 35%. These figures indicate a strong demand from Hong Kong companies to replenish their manpower.

The survey further showed that the average employee turnover rates for local companies this year range from 9.1% to 23.8%, which are similar to last year. Among employees who left voluntarily, promotion, development opportunities, and compensation remain the primary reasons for leaving. Notably, immigration has been the third reason for departure among senior executives for four consecutive years.

Job Market Conditions in the GBA and Comparison of Labour Costs in Various Cities

Regarding the job vacancy trends, the job vacancy rates in Hong Kong (3.7%) and Macao (6.1%) in 2024 are higher than those in the Guangdong cities (1.4%), reflecting a more favourable job market outlook in Hong Kong and Macao. However, compared to 2023, Hong Kong’s job vacancies are on a downward trend, with uncertainty in the job market.

For the annual salary for core positions and labour costs, Hong Kong still tops the region, followed by Macao (71%), Shenzhen (60%), Guangzhou (55%), and other regions in Guangdong Province (30%).

The results of this survey will be incorporated into the database of the “My AI Salary Consultant” system developed by HKBU. “My AI Salary Consultant” is an intelligent system that uses innovative data algorithms to help companies evaluate the effectiveness of various compensation strategies based on scientific research conducted globally over the past 50 years, as well as data collected from surveys in the GBA, providing personalised recommendations to each participating company. This system not only incentivises companies to participate in the survey, but also encourages them to provide accurate and extensive salary and benefit data which enhances the scientific rigour of the survey.

Please refer to the attachment for other key figures from the “Guangdong-Hong Kong-Macao Greater Bay Area Pay and Benefits Survey”.