Employers in China anticipate a slightly higher median salary increase next year as they push to retain top-tier talent despite financial pressures following a soft 2026, according to data published by a global advisory.
Companies were budgeting for a median increase of 4.5 per cent in 2027, following 4.3 per cent growth in 2026 and 4.5 per cent in 2025, the advisory and broking firm WTW said in a new report.
Even so, the three-year figure would still lag Asia-Pacific regional averages over the same period by 0.4 percentage points, it added.
“The data for China highlights a classic optimisation challenge,” a WTW spokeswoman told the South China Morning Post in a statement. “Employers are caught between managing organisational costs and safeguarding top-tier talent.”
She said the slowdown in 2026 was primarily driven by intense corporate cost-control pressures and weaker-than-expected financial results.
The report, which was released on Monday, noted that a “staggering” 37.5 per cent of surveyed organisations were focused on employee retention, reflecting a “tight” labour market, particularly in high-growth sectors.
The findings were based on a survey of 938 organisations conducted in the second quarter of 2026 and carried no margin of error. Senior human resources leaders buy the annual reports to help develop compensation strategies.