China’s hi-tech boom pushes firms to boost pay in 2027 as keeping talent a priority

The modest rise still lags regional averages and comes as firms try to retain staff amid aggressive recruitment, according to a new report

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.

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.