Hong Kong Bankers Earning 70% More than Singapore Peers, with Layoff Risks

Bankers in Hong Kong are making as much as 70% more than their counterparts in Singapore, although it comes with elevated risk. Hong Kong recently increased its income tax to 15% for those making over $640,000, still 7% lower than Singapore, where the tax rate reaches 22% for individuals earning above $237,000, even at a much lower threshold.

The wealth gap between the two cities began to narrow, as the cost of living in Singapore climbs. The Mercer Cost of Living survey ranked Singapore as the second-most expensive city for expatriates in 2023, closely behind Hong Kong which took the first place. Singapore was ranked sixth in 2022. A growing strain on professionals living there has since driven the costs up.

In addition to financial factors, lifestyle preferences also weigh heavily. Hong Kong’s diverse landscape of mountains, beaches, and proximity to mainland China offer more recreational options. 

The higher pay in Hong Kong may come at a cost, with layoffs potentially looming for those in higher salary brackets.

Photo: AP Photo/Louise Delmotte