13/8-25/8 Hong Kong HR trends & workplace insights

This week’s HR insights bring you a closer look at how workplace trends are evolving across Asia and beyond. From salary benchmarks in Hong Kong and Singapore to the expanding role of CHROs in leading transformation, we explore how companies are adapting to shifting expectations. We also cover the strong August performance of Hong Kong’s MPF scheme, the government’s zero-tolerance stance on labor violations, and Australia’s new “right to disconnect” law extending to small businesses—each offering timely lessons for HR professionals and employees alike.

1. Looking for better pay? These are where you may go

One-minute summary

In an illuminating report published by Human Resources Online, the latest data highlights that among APAC countries, Singapore currently leads with the highest average monthly salary of USD 4,457, while Hong Kong ranks sixth in the region and twenty-second globally, earning an average of USD 3,177 per month (News.com.au, Human Resources Online). The analysis references insights from the CEOWORLD magazine 2025 global salary rankings, which further indicate that Switzerland, Luxembourg, and the United States still dominate the top positions for average salary globally (Human Resources Online). For professionals seeking higher pay, these findings suggest not only local benchmarks but also potential relocation opportunities and highlight the persistent salary disparities across regions.

3 main takeaways

• Singapore remains the highest‑paying job market in APAC. With an average monthly salary of USD 4,457, it underscores the country’s competitive compensation environment, particularly for skilled professionals and expatriates. This positioning attracts global talent and strengthens Singapore’s status as a regional business hub. Despite the rising cost of living, robust wage levels help justify the financial trade-offs of working there.
• Hong Kong trails but remains a regional salary leader. Ranking sixth in APAC and 22nd globally, Hong Kong’s average of USD 3,177 per month places it among top-earning regions. The figure reflects Hong Kong’s persistent role as a financial and commercial center, even amid evolving economic dynamics and cost pressures.
• European and North American markets continue to lead globally in salaries. Countries like Switzerland, Luxembourg, and the U.S. remain at the top globally, suggesting that professionals focused on maximizing compensation should consider these markets. However, factors such as cost of living, taxation, and work-life balance must also be considered when weighing relocation or career shifts.

Implications for employees

• Benchmark your worth against regional and global standards. Knowing that Singapore and Hong Kong still score among the top-paying APAC markets gives employees a solid reference point for negotiating salaries. It’s critical to assess compensation not just against peers locally, but also considering global standards—especially if you’re assessing opportunities across international borders.
• Consider relocation for salary enhancement—but evaluate holistically. While markets such as Switzerland, Luxembourg, and U.S. cities offer higher absolute pay, moving abroad involves trade-offs: tax rates, living costs, healthcare, visa issues, and quality of life. Crafting a complete cost-benefit analysis will help determine if higher salaries truly translate into improved financial security.
• Use salary data strategically in negotiations. Armed with these benchmarks, employees can confidently initiate transparent conversations with employers about pay expectations. Rather than vague references, citing comparative figures enhances credibility and strengthens one’s position when seeking reviews, promotions, or shifts to more rewarding roles.

Implications for HR

• Leverage benchmarking data to stay competitive in talent attraction and retention. With APAC compensation trends shifting, HR must closely track salary data to ensure internal offerings align with regional benchmarks—especially against markets like Singapore and Hong Kong.
• Guide employees thoughtfully through relocation or compensation discussions. HR teams should support staff considering geographic shifts by providing resources about financial, tax, and legal implications beyond salary—enabling more informed decisions.
• Enhance transparency in compensation frameworks. Sharing benchmark insights can reinforce credibility in HR-led discussions. By articulating how pay scales are set relative to regional and global norms, HR can foster trust and clarity, reducing ambiguity during compensation review cycles.

Source: Human Resources Online

2. Nearly $4,000 in gains forecast for MPF scheme members in August

One-minute summary

According to a recent report from The Standard, each Mandatory Provident Fund (MPF) scheme member in Hong Kong is expected to gain approximately HK$3,930 in August, due in part to strong performance from Japan equity funds during the period (The Standard). Another data source from AAStocks corroborates this, estimating that total investment growth in August reaches around HK$18.8 billion—translating to HK$3,930 per member—and pushing 2025 year-to-date returns toward an impressive ~11.56%, marking one of the best first eight-month performances since 2017 (AAStocks). These developments reflect a favorable investment environment for Hong Kong’s retirement savers amidst uncertain markets.

3 main takeaways

• Significant gains for MPF members in August driven by Japan equity fund performance. The strong contributions from Japan equity reflect shifting global asset trends and the resilience of Asian markets. Members benefitted materially, with nearly HK$4,000 in individual gains—underscoring the value of diversified investment strategies.
• 2025 continues strong with year‑to‑date gains outperforming recent years. The forecasted ~11.56% return as of August places 2025 among the top-performing years for MPF since 2017. Consistent gains across multiple months reflect strong fund management and a buoyant investment climate—all positives for long‑term savers.
• Collective wealth growth is substantial. With approximately 4.79 million MPF members, cumulative returns for August alone amount to HK$18.8 billion. This highlights not just individual impact but the macro-scale benefits of well-performing retirement investments for the wider society and economy.

Implications for employees

• Stay engaged with MPF fund performance. Employees should leverage the favorable investment environment by staying informed about fund allocations and returns. Understanding underlying factors like exposure to Japan equities can help optimize personal retirement outcomes.
• Use current performance as an educational springboard. These results offer an opportunity for employees to deepen their financial literacy—learning about fund diversification, market cycles, and the role of different asset classes (like Japan equities) in shaping long-term returns.
• Review contribution strategies amidst positive momentum. While high returns are encouraging, employees should reassess whether their MPF default funds still align with their risk tolerance, time horizon, and retirement goals. Strong days may warrant strategic adjustments, not complacency.

Implications for HR

• Promote financial wellness initiatives. HR teams should capitalize on the strong MPF performance to drive education programs—webinars, toolkits, or one-on-one sessions—that help employees understand their retirement planning and manage expectations proactively.
• Enhance transparency of MPF fund choices. By offering clearer comparisons of fund types and their past performance, HR can guide employees toward informed selections based on risk profile and long-term needs—beyond headline monthly gains.
• Leverage MPF success in engagement and benefits messaging. Showcasing strong returns helps reinforce confidence in the company’s benefits administration. HR can amplify internal messaging that underscores the value and positive outcomes of the organization’s retirement offering.

Source: The Standard

3. The First Word: How CHROs in Asia are leading transformation

One-minute summary

Chief of Staff Asia explores the transformative role of Chief Human Resources Officers (CHROs) across Asia, showcasing how these leaders are driving organizational and cultural transformation amid complex global challenges (Frazer Jones). The piece highlights influential figures such as Leena Nair—former CHRO of Unilever and current CEO of Chanel—as emblematic of the global impact of Asian HR talent and leadership (Frazer Jones). Additionally, People Matters’ “CHRO Effectiveness in Southeast Asia 2025” research underscores the growing need for CHROs to align HR strategy with business goals through talent development, digital fluency, and future-ready frameworks (People Matters).

3 main takeaways

• Asian CHROs are stepping into global leadership roles. With Leena Nair at the helm of Chanel after her CHRO tenure at Unilever, the trajectory of HR executives up from Asia underscores the region’s leadership pipeline and strategic influence in global business leadership.
• CHROs are evolving into architects of transformation. The latest People Matters study outlines how CHROs need to integrate digital transformation, organizational agility, and employee-centric models into strategic plans to future‑proof their organizations—a mandate that goes beyond traditional HR functions.
• Effective HR leadership demands alignment with the C‑suite and business strategy. The research stresses that CHROs must not only deliver HR solutions, but also align talent initiatives with overarching business goals—acting as partners to CEOs, driving long-term resilience and growth.

Implications for employees

• Look for opportunities under dynamic HR leadership. As CHROs elevate their roles, organizations led by such transformative HR leadership may offer stronger culture, better talent development, and a more future-ready working environment—ideal for employee growth.
• Prepare for roles with evolving expectations. Employees should embrace digital competency, adaptability, and strategic thinking—traits increasingly spotlighted in CHRO-led transformation agendas. Staying relevant means growing alongside organizational shifts.
• Expect more transparent and aligned HR practices. As CHROs drive alignment with business strategy, employees can anticipate performance reviews, communication, and development planning to become more integrated with broader organizational aims.

Implications for HR

• Redefine the CHRO role as a strategic business partner. HR leaders should step beyond administration into strategic spheres—driving culture, digital adoption, and talent strategy as fundamental components of organizational success.
• Embed digital and agile capabilities into HR frameworks. Invest in the skills and tools that support transformation—data literacy, employee experience platforms, and learning ecosystems—to deliver impactful HR solutions.
• Collaborate closely with executive leadership. Aligning HR goals with the CEO’s vision enhances relevance and influence, enabling CHROs to pivot the organization toward sustained innovation and adaptability.

Source: Chief of Staff Asia

4. Case of Foreign Worker Hiring Followed by Local Worker Dismissal—Zero Tolerance if Proven

One-minute summary

According to multiple Hong Kong sources, including Ming Pao and BusinessFocus, authorities have identified the first suspected case under the “Supplementary Labor Optimization Scheme” in which an employer hired a foreign worker and subsequently dismissed a local employee. Labor and Welfare Secretary Sun Yuk-han confirmed that if the investigation substantiates this behavior, the employer will be subject to administrative sanctions—including suspension of all new foreign labor applications and a one-year ban on foreign worker applications (香港01, news.mingpao.com, STHeadline, Yahoo Finance). The scheme mandates that employers must advertise vacancies locally for four weeks before applying for foreign workers, and the government is planning to intensify oversight by requiring on-site recruitment for roles such as junior cooks and service staff starting next month (香港01, STHeadline). Meanwhile, unemployment in Hong Kong has edged up by 0.2 percentage points to 3.7%, with particular concern over the food and beverage sector (news.mingpao.com).

3 main takeaways

• The first suspected violation under the foreign worker scheme has emerged. An employer is suspected of replacing a local worker with a foreign hire, triggering a formal investigation. This marks a significant enforcement moment under the two-year-old program and underscores increasing scrutiny of compliance.
• Zero tolerance approach if violation is confirmed. Labor authorities, led by Secretary Sun Yuk‑han, have pledged that any confirmed violation will result in severe consequences—namely, suspension of future foreign labor applications and a ban lasting up to one year. This signals a strong message to employers about misuse of the labor import system.
• Policy tightening includes enhanced local recruitment measures. Beyond sanctions, the government plans to strengthen pre-hiring processes by mandating on‑site recruitment at employment centers for certain roles like junior cooks and waitstaff—an effort to encourage local hires and reduce reliance on imported labor.

Implications for employees

• Stay informed and report potential abuses. Local workers should be aware of the eligibility criteria and procedures under the scheme and be empowered to report suspicious practices if displaced by foreign hires—knowing that the authorities are monitoring compliance.
• Expect increased competition in sectors with policy scrutiny. Industries such as F&B may see stronger local hiring push, making it crucial for workers to enhance their skills and visibility to remain employable and preferred during recruitment.
• Be reassured by policy’s local-first principle. The government’s apparent shift toward enforcing local hiring first may bolster job security—reinforcing a system where local talent gets priority and unfair replacements are sanctioned.

Implications for HR

• Ensure rigorous compliance with scheme requirements. HR and employers must strictly follow local recruitment protocols—advertising vacancies for the mandated period and documenting recruitment efforts—to avoid penalties or bans on hiring foreign workers.
• Prepare for enhanced oversight and scrutiny. With intensified checks and on-site recruitment mandates looming for certain roles, HR teams will need to coordinate closely with employment offices and maintain transparent hiring records.
• Support local employment proactively. HR should explore upskilling initiatives, internal mobility, and talent development nationwide to reduce dependence on foreign labor, strengthening local workforce resilience.

Source: Business Focus 

5. Right to disconnect extends to small-business employees

One-minute summary

As of August 26, 2025, Australia’s “Right to Disconnect” legislation has expanded to cover employees working in small businesses (with fewer than 15 staff). This law allows workers to refuse to monitor, read, or respond to work-related communications—calls, emails, texts—outside of reasonable working hours, unless the contact is deemed reasonable or emergent (News.com.au). The expansion follows an initial rollout for medium and large companies in August 2024 (News.com.au). While proponents tout the law as essential for protecting work-life balance and mental wellbeing, critics warn it may impose burdensome compliance costs and hamper operational flexibility in SMEs (News.com.au).

3 main takeaways

• Small business employees gain the legal right to disconnect. As of August 26, 2025, employees at businesses with fewer than 15 staff can now legally ignore work-related contact outside official hours—unless it’s reasonable or urgent—providing them protection similar to staff in larger firms.
• Supporters see it as a win for well‑being and balance. Advocates frame the law as vital for preserving personal time, reducing burnout, and ensuring that unpaid after-hours work doesn’t go unchecked, consistent with global trends in worker rights (Courier Mail).
• Small businesses concerned about practicality and compliance burdens. Critics—particularly small business owners—express concerns over administrative complexity, potential misunderstandings over what qualifies as ‘reasonable’ contact, and financial penalties of up to A$93,900 for noncompliance (News.com.au).

Implications for employees

• You now have legal protection for personal time. If you’re working at a small organization in Australia, you can officially refuse unreasonable work contact outside hours—empowering you to safeguard boundaries without fear of retaliation.
• Be clear about what defines ‘reasonable’ contact. Since the law allows some flexibility (e.g. emergencies or critical role-based contact), employees should seek clarification from employers to understand expectations and avoid misunderstandings.
• You may encounter organizational friction. While the law supports personal boundaries, some small businesses may perceive non-responsiveness as a lack of commitment—so balancing legal rights with dialogue and empathy could help maintain mutual respect.

Implications for HR

• Formalize after-hours communication policies. Even in small firms, establishing clear guidelines—defining expectations, exceptions, and response protocols—will help minimize ambiguity and reduce potential disputes.
• Train managers and employees on compliance. HR should ensure all staff understand their rights and obligations under the law. This includes managers who need to grasp when reaching out is reasonable, and be cautious not to penalize following the right to disconnect.
• Prepare for compliance and documentation demands. SMEs must recognize that enforcement carries weight—non-compliance can trigger penalties or Fair Work Commission reviews—so drafting policies and maintaining records is essential.

Source: News.com.au