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China firms budget higher pay increases for 2027 to retain talent

WTW data show a median 4.5% salary increase in 2027, up from 4.3% in 2026, despite a multi year lag versus Asia Pacific averages.

Reported · Written up by our desk · Asia

China employers are planning for a slightly higher median pay increase in 2027 as they prioritize keeping high performing staff, according to data cited by SCMP Economy from WTW.

WTW said companies were budgeting a median salary increase of 4.5% for 2027, following 4.3% growth in 2026 and 4.5% in 2025. Even with the uptick, the three year figure would still trail Asia Pacific regional averages over the same period by 0.4 percentage points.

SCMP Economy attributed the slowdown in 2026 to intense corporate cost control pressures and weaker than expected financial results. The report also found that 37.5% of surveyed organisations were focused on employee retention, reflecting what WTW described as 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 SCMP Economy said the results were published with no margin of error. SCMP Economy added that senior human resources leaders use these annual reports to shape compensation strategies.

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