Hong Kong graduates can expect flat pay or 5% drop this year, experts say

Hong Kong undergraduates entering the workforce this year may see their pay stay flat or drop by as much as 5 per cent in the worst case against last year’s cohort, observers have said, pointing to factors such as a weak economy and a civil service salary freeze.

Experts suggested that youngsters could upskill themselves, while employers should also offer competitive salaries to attract talent.

They made their predictions after the University Grants Committee, a government advisory body that allocates funding for higher education institutions, last week revealed that the average annual salary of undergraduates in the 2023-24 academic year rose to HK$329,000 (US$42,180).

The figure is the highest recorded in the past seven academic years, marking a 4.8 per cent increase from the class of 2023.

Alexa Chow Yee-ping, managing director of ACTS Consulting, said salaries for undergraduates in the 2024-25 academic year would mostly remain the same, while those in poorly performing sectors could see a drop of 2 to 5 per cent.

Chow said the estimate was due to two factors: the city’s transforming economy amid changing consumption patterns and geopolitical tensions; and the influx of manpower from the government’s top talent pass scheme.