If you’re considering a move to Hong Kong, understanding the wage structure will ensure you’re paid fairly for your work. That said, know there are many factors which influence the average salary in Hong Kong, including your industry and location.
The top industries in Hong Kong are science, security and law enforcement, information technology, banking, and health and social care. These are thriving industries and pay some of the highest salaries in the region.
An average salary or wage is the mid range remuneration in a particular industry, sector or profession. It’s neither the highest nor lowest you can make - it sits somewhere in the middle.
Understanding the difference between gross and net income in Hong Kong is essential for employees. Gross income, either salary or wages, refers to the amount paid by the employer before any mandatory taxes or social insurance contributions are deducted. It is the higher amount noted on your pay slip.
Net income is the actual amount that will be paid into your bank account once those deductions have been made. It’s the lower amount on your pay slip and is often in bold so you can distinguish it more easily.
According to national statistics, as of September 2024, the year on year percentage increase of nominal wages across all industries in Hong Kong was 3.6%. The nominal wage index measures the cost of labour for employees up to supervisor level.
As discussed, gross income is the amount that you are paid according to your employment contract. This is the amount that is advertised when you enrol for a particular position. That said, it’s a pre-tax and social insurance contribution figure, so it isn’t an accurate representation of your take home pay.
Net income is the wage you receive after mandatory taxes and social insurance contributions have been paid. In Hong Kong, these deductions are paid by you as part of your annual tax declaration.
It’s vital to understand the difference between gross and net income. When you see a job advertised for a specific salary, this is the gross wage, not the final amount you’ll receive.
Several factors influence the Hong Kong average salary, including:
Some of the most lucrative industries are finance, science, IT, pharmaceuticals and trading. Tourism is also a booming industry in Hong Kong. The region also has a strong service economy.
Generally, the better your education, the higher your average salary will be. Most professional or high-skill positions will require a degree, and as Hong Kong has a highly competitive job market, higher education will improve your prospects.
A shifting economic landscape means that most companies are recruiting young professionals for mid to senior level positions as older employees leave.
As with education, having previous experience will help to secure a higher salary. This is particularly the case in the industries that are most in demand such as data science and AI technology.
Job location also plays a role in the level of remuneration with wages commonly being higher in bigger cities as opposed to smaller towns or rural areas. This is due to greater demand in urban areas as well as a higher cost of living.
Considering which industries have the highest average salaries in Hong Kong? In general, you should be looking at:
When considering the average wage in Hong Kong, a good starting point is to understand the statutory minimum wage. This came into effect in May 2011 and currently stands at HKD40 per hour.
The number of hours that a minimum wage employee works must be recorded by the employer. This is particularly important for part time workers or those who work irregular hours. A minimum monthly wage threshold of HKD 16,300 must be met or exceeded.
Employers must ensure that employees are being paid the legal minimum wage and can be fined a penalty of up to HKD350,000 if found not to be doing so without a reasonable excuse. There is also the possibility of a three year prison sentence for employers who breach this minimum wage law.
As mentioned, the average salary in Hong Kong depends on the particular industry sector, related experience, level of education and the geographical location.
So, what is the average wage in Hong Kong? Here’re the statistics for each industry as per Talent:
The salary associated with each job is dependent on the experience level of the employee. These can be roughly divided into entry level, mid level and more senior positions.
Due to its competitive job market, employers in Hong Kong offer attractive salaries to retain experienced and skilled professionals in all sectors.
A global survey of average monthly salaries recently revealed that Hong Kong ranks 23rd in the world. It equates to just 38% of the top ranking Swiss average wage and substantially less than the average salary in the US or Luxembourg.
The calculations were not just based on a full time base salary but also included overtime pay, bonuses and other types of compensation.
One of the reasons for this disparity is the high cost of living in Hong Kong which means real wages don’t go as far as in other, less expensive countries.
This is particularly true for accommodation which is at a premium in this small region. Rent for a one bedroom apartment in the centre of Hong Kong can cost HKD 20,000 per month. In contrast, transportation is relatively inexpensive with a monthly pass costing an average of HKD 750.
Any salary negotiation is tricky and this is particularly the case if you are entering a country and job market that you are unfamiliar with.
Therefore, it’s important to do some research and inform yourself about how salaries are negotiated in Hong Kong particularly, in your industry sector, profession and even for your exact position.
You must understand the industry standards and where you land on the experience ladder. If you are a fresh graduate you have less to negotiate with than a more senior candidate with more experience and knowledge.
Some tips for negotiating include:
In order to make informed career choices, it’s important for employees to understand the concept of an average salary as well as the difference between gross and net income.
Being aware of the factors which influence wages in Hong Kong including the minimum wage policy is also vital. You should compare wages and salaries in the region with other countries while bearing in mind cost of living expenses.
Finally, all employees should be capable and prepared to negotiate their salary to ensure fair remuneration for their position. To maintain your financial records, QuickBooks is an indispensable aid and ensures that your accounts are always in order.
