Wages and Payroll Rise in September 2025, Average Wage Increases 3.3% Year-on-Year

Wage and payroll statistics for September 2025

Overall Wage and Payroll Statistics

According to the figures released today (December 29) 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 3.3% in nominal terms in September 2025 over a year earlier.

The Census and Statistics Department (C&SD), Photo source: reference image

About 61% of the companies reported increase in average wage rates in September 2025 compared with a year ago. A total of 34% of the companies recorded decrease in average wage rates over the same period. The remaining 5% reported virtually no change in average wage rates.

After discounting the changes in consumer prices as measured by the Consumer Price Index (A), the overall average wage rate for all the selected industry sections surveyed increased by 1.8% in real terms in September 2025 over a year earlier.

As for payroll, the index of payroll per person engaged for all the industry sections surveyed increased by 2.8% in nominal terms in the third quarter of 2025 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 1.7% in real terms in the third quarter of 2025 compared with a year earlier.

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. The payroll statistics therefore tend to show relatively larger quarter-to-quarter changes, affected by the number of hours actually worked and the timing of payment of bonuses and back-pay.

Sectoral Changes

For the nominal wage indices, year-on-year increases were recorded in all selected industry sections in September 2025, ranging from 2.1% to 3.9%.

For the real wage indices, year-on-year increases were also recorded in all selected industry sections in September 2025, ranging from 0.6% to 2.4%.

The year-on-year changes in the nominal and real wage indices for the selected industry sections from September 2024 to September 2025 are shown in Table 1.

As for the nominal indices of payroll per person engaged, year-on-year increases ranging from 1.8% to 3.8% were recorded in all selected industry sections surveyed in the third quarter of 2025, except the transportation, storage, postal and courier services section where a year-on-year decrease of 0.5% was recorded.

For the real payroll indices, year-on-year increases ranging from 0.7% to 2.7% were recorded in all selected industry sections surveyed in the third quarter of 2025, except the transportation, storage, postal and courier services section where a year-on-year decrease of 1.5% was recorded.

The year-on-year changes in the nominal and real indices of payroll per person engaged for selected industry sections from the third quarter of 2024 to the third quarter of 2025 are shown in Table 2. The quarterly changes in the seasonally adjusted nominal and real indices of payroll per person engaged in the same period are shown in Table 3.

Commentary

A Government spokesman said that wages and labour earnings continued to grow in both nominal and real terms in the third quarter of 2025 over a year earlier. Average wage rate and payroll per person engaged of most selected industries recorded increases of varying degrees.

Looking ahead, the solid expansion of the Hong Kong economy and the improving consumer confidence should render support to labour demand, which will be conducive to growth in wages and labour earnings.

Other Information

Both wage indices and payroll indices are compiled quarterly based on the results of the Labour Earnings Survey (LES) conducted by C&SD. Wage index only covers employees up to the supervisory level (i.e. not including managerial and professional employees), whereas payroll index covers employees at all levels and proprietors actively engaged in the work of the establishment.

Apart from the differences in employee coverage, wage statistics are conceptually different from the payroll statistics. Firstly, wage rate for an employee refers to the sum earned for his normal hours of work. It covers basic wages and other regular and guaranteed allowances and bonuses, but excludes earnings from overtime work and discretionary bonuses, which are however included in payroll per person engaged. Secondly, the payroll index of an industry is an indicator of the simple average payroll received per person engaged in the industry. Its movement is therefore affected by changes in wage rates, number of hours of work and occupational composition in the industry. In contrast, the wage index of an industry is devised to reflect the pure changes in wage rate, with the occupational composition between two successive statistical periods being kept unchanged. In other words, the wage index reflects the change in the price of labour. Because of these conceptual and enumeration differences between payroll and wage statistics, the movements in payroll indices and in wage indices do not necessarily match closely with each other.

It should also be noted that different consumer price indices are used for compiling the real indices of wage and payroll to take into account the differences in their respective occupation coverage. Specifically, the Composite Consumer Price Index, being an indicator of overall consumer prices, is taken as the price deflator for payroll of workers at all levels of the occupational hierarchy. The Consumer Price Index (A), being an indicator of consumer prices for the relatively low expenditure group, is taken as the price deflator for wages in respect of employees engaged in occupations up to the supervisory level.

Detailed breakdowns of the payroll and wage statistics are published in the "Quarterly Report of Wage and Payroll Statistics, September 2025". Users can browse and download the publication at the website of C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1050009&scode=210).

For enquiries on wage and payroll statistics, please contact the Wages and Labour Costs Statistics Section (1) of C&SD (Tel: 2887 5550 or email: wage@censtatd.gov.hk).

Source: AI-found images

Labour Department highly concerned about fatal work accident that happened in Tai Po today

The Labour Department (LD) is highly concerned about a fatal work accident that happened at an industrial building in Tai Po this afternoon (February 24), in which a male worker fell from height while erecting a bamboo scaffold at the external wall of the building. He was certified dead later in hospital. The LD is saddened by the death of the worker and expresses its deepest sympathy to his family.

The LD's spokesman said, "We commenced an immediate on-site investigation as soon as we were notified of the accident and have issued suspension notices to the contractors concerned, suspending the erection, alteration, dismantling and use of bamboo scaffolds on the external wall of the building. The contractors cannot resume the work process until the LD is satisfied that suitable measures to abate the relevant risks have been taken."

The spokesman added, "We will complete the investigation as soon as possible to identify the cause of the accident, ascertain the liability of duty holders and recommend improvement measures. We will take action pursuant to the law if any violations are found during the investigation."

To prevent workers from falling from height while erecting scaffolding, the LD reminds contractors to take adequate safety measures, including providing every scaffolder with a suitable full body harness that is attached continuously to a suitable and secure anchor point, an independent lifeline or a fall arresting system, and ensuring the proper use of the safety equipment by the workers concerned throughout the work.

The general duty provisions of the Occupational Safety and Health Ordinance require employers to provide safe working environments, plant and systems of work for their employees. Those who contravene the relevant provisions are liable to a maximum fine of $10 million and imprisonment for two years.

In regard to today's accident, the LD will issue a Work Safety Alert through its mobile application "OSH 2.0", website and email, giving a brief account of the accident concerned to duty holders, workers' unions, professional bodies of safety practitioners and others, and reminding the industry of the importance of following safety precautionary measures to prevent a recurrence of similar accidents.

The LD will also remind the employer concerned of the liability for employees' compensation under the Employees' Compensation Ordinance, assist family members of the deceased to claim employees' compensation and closely follow up on the case. For those with financial difficulties, the LD will assist them to apply for appropriate emergency funds. Subject to the needs and wishes of the family members of the deceased, the LD will also liaise with the Social Welfare Department for financial or other assistance.

For the sake of securing the safety and health of employees at work, the LD appeals to employers to provide plant and systems of work that are safe and without risks to health. Employees should also co-operate with their employers, adopt all safety measures and use personal protective equipment provided properly to avoid endangering their own work safety and that of other workers.

Source: AI-found images