Know Stat, Know Everything: Median Monthly Wage
While the term "median monthly wage" is frequently mentioned in news and online commentaries, do you know what is median monthly wage?
Definition of wage
According to the Employment Ordinance, wage includes and excludes the following components in general:
| Include: | Exclude: |
|---|---|
 Basic wage |
 End of year payment |
| Commission and tips not of gratuitous nature (e.g. commission paid according to the criteria specified in the employment contract) |
Commission, allowances and bonuses of gratuitous nature |
| Guaranteed bonuses and allowances |
Employer's contribution to any retirement scheme |
| Overtime allowance |
Payments in kind (e.g. the value of education or medical services provided by the employer) |
Meaning of median monthly wage
By arranging the monthly wages of all employees from the smallest to the largest value or from the largest to the smallest value, the median monthly wage is the monthly wage of the employee who ranks in the middle. Thus, if the median monthly wage of all employees in the following picture is $20,000, it means that half of the employees have a monthly wage of more than $20,000 while the other half have a monthly wage of less than $20,000.
"Median" and "Average" monthly wage
Generally, a small proportion of employees in the society have significantly high monthly wages. Therefore, the value of the "average" monthly wage will be substantially enlarged by these extreme values, hence failing to represent the middle monthly wage level of employees accurately. Conversely, the "median" monthly wage is comparatively less affected by these extreme values and thus better reflects the overall wage level.
Usage of median monthly wage
In addition to providing the overall median monthly wage in Hong Kong, the Census and Statistics Department also provides the median monthly wage analysed by sex, age, occupation (e.g. service and sales workers, clerical support workers) and industry (e.g. retail trade, financing and insurance), etc. These statistics can reflect the wage levels in Hong Kong as a whole and in specific groups (such as a particular industry or occupation), and their rate of change also indicates how wages are changing over time. These figures serve as a reference for employers when setting or adjusting wages, and for employees when choosing careers and industries. In addition, the Government will also refer to relevant figures when formulating policies and measures, for example when conducting analysis in relation to the Statutory Minimum Wage.
Want to know more about wages and labour earnings statistics? Please visit our "Wages and Labour Earnings" for more details.
LI Chi-to, Felix
Research Manager
27 January 2025