Are Expat salaries likely to rise in Thailand?

[webfact]

file photo

 

by Michael Bridge

Thailand is the second biggest economy in Southeast Asia. 

And it’s a popular outsourcing location due to its average salary, which is lower than in countries like the USA and Singapore.

Online statistics state the average annual salary in Thailand is 1,160,000 THB (Thai Baht) or 34,782 US Dollars, according to the exchange rates in August 2021. 

 

But the country’s average salary varies, depending on several factors.

 

The resumption of international flights last month has fast-tracked the recovery of the tourism and hospitality sectors, driving demand for expat senior managers, according to Navigos Search.

Thailand has a salary range for Expats of 24,500 THB (US$734) to 433,000 THB (US$12984) in a month. Its average monthly salary is 96,900 THB (US$2,904).

 

Of course, these figures vary according to expertise and the region.

 

Whereas the monthly incomes of foreign expats working in Vietnam ranged between US$8,500 and $34,000 last quarter, according to a recent report by recruitment firm Navigos Search.

 

The report said enterprises operating in Vietnam "pay very high salaries" to attract foreign candidates.

Navigos Search said some sectors like garment, tourism and hospitality have high demand for foreign personnel due to a shortage of local expertise.

 

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However, if you want the top salaries, Switzerland is one of the highest paying countries in the world. 

Sure, their cost of living is also high which is one of the cons of living in Switzerland, however solid career opportunities and high living standards are worth it. An average expat benefits package in the country is about US$246,971 a year.

Average Bangkokians live comfortably with 30,000THB per month, so you can imagine how your life can be with 400,000THB salary. 

 

Most companies in Thailand do offer great amount of salary to foreigners, but most won't go above 200k.

 

Expats with a few years’ experience in a professional occupation can expect to earn a good wage in Singapore. The average expat salary for a middle manager working in Singapore was SGD 119,927(£63,574 GBP/$88,045 USD) in 2020, according to a study by ECA International.

 

Expat market

The Expatriate Market is determined by the origin of each Expatriate. 

It is quite normal to have considerable differences between Expatriates doing exactly the same job, in the same country. These differences are caused by three factors:

•    The Cost-of-Living difference between the Home Country (country of origin) and Host Country (where they work)

•    The Relative Hardship difference between Home and Host Country. For example, moving to a country where more day-to-day hardship will be experienced, would normally result in more pay to compensate for the hardship

•    The Exchange Rate difference between the Home and Host Country

On the other hand, the Local Market is largely determined by local supply and demand for skills.
Currently most countries especially in Thailand are facing a massive labour shortage from the workforce up to senior management.

How much to ask?

Expatriate Pay is typically calculated by using the Expatriates salary in their Home Country as the start point and then by calculating an appropriate salary in the Host Country.

Using the Cost of Living difference, relative hardship, and exchange rate, this is either done using a company in-house policy or using an international relocation calculator.

Local Pay is typically determined by the prevailing market salary levels. 

These salary levels are typically reported in salary surveys run by independent Remuneration Consultancies.

The bottom line is some companies cannot afford high salaries, so they try to source from their own local markets.

Meanwhile, as we have already mentioned, due to the pandemic, many of the workforce are unlikely to return, so employing expats is becoming a necessity.

 

-- © Copyright  ASEAN NOW 2022-05-04

 

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[Airalee]

9 minutes ago, webfact said:

Thailand has a salary range for Expats of 24,500 THB (US$734) to 433,000 THB (US$12984) in a month. Its average monthly salary is 96,900 THB (US$2,904).

 

Whereas the monthly incomes of foreign expats working in Vietnam ranged between US$8,500 and $34,000 last quarter, according to a recent report by recruitment firm Navigos Search.

These figures are quite misleading.  The ฿24,500 salaries in Thailand are most likely entry level English teachers.  English teachers in Vietnam don’t make US$8,500.   In fact, the starting salaries are closer to US$1,100

 

https://vietnamteachingjobs.com/average-salary-esl-teachers-vietnam/

[OneMoreFarang]

53 minutes ago, webfact said:

Average Bangkokians live comfortably with 30,000THB per month,

Just one of the sentences which disqualifies this writer.

I thought this was supposed to be an expert website for expats in Thailand.

[PoodThaiMaiDai]

 

2 hours ago, webfact said:

Thailand has a salary range for Expats of 24,500 THB (US$734) to 433,000 THB (US$12984) in a month. Its average monthly salary is 96,900 THB (US$2,904).

 

"Salary Range" is the key words, as I know some who are above and below these amounts.

[Whale]

There must be less and less sectors that need to hire non-Thais these days compared to the past. 

 

The sector I worked in is all Thai these days and is doing very well.

[jacko45k]

Just now, Whale said:

There must be less and less sectors that need to hire non-Thais these days compared to the past. 

 

The sector I worked in is all Thai these days and is doing very well.

That surprises me.... I still come across a lot of non-Thais in lower and menial work situations and if anything more of them. The people who service my pool, many serving staff at eateries, and construction... once my gardener turned up with a few Cambodian helpers. 

[hotchilli]

4 hours ago, webfact said:

The average annual salary in Thailand is 1,160,000 THB (Thai Baht) or 34,782 US Dollars, according to the exchange rates in August 2021. 

Garbage in garbage out...

Edited May 3, 2022 by hotchilli

[bkk6060]

4 hours ago, webfact said:

to 433,000 THB (US$12984) i

I did not know they could track my salary. 55555.

[SAFETY FIRST]

5 hours ago, OneMoreFarang said:

Just one of the sentences which disqualifies this writer.

I thought this was supposed to be an expert website for expats in Thailand.

This writer 'Michael Bridge' often writes nonsense. 

 

 

[Iron Tongue]

Count me in on one of those Switzerland jobs that'll pay US$246,971 to teach English to the Swiss!

[RandiRona]

5 hours ago, OneMoreFarang said:

Just one of the sentences which disqualifies this writer.

I thought this was supposed to be an expert website for expats in Thailand.

All his knowledge of Thailand is being delivered by his Bar Gal.... in drips of insanity.

[RandiRona]

5 minutes ago, Iron Tongue said:

Count me in on one of those Switzerland jobs that'll pay US$246,971 to teach English to the Swiss!

When he was writing numbers he had one too many!

[RandiRona]

22 minutes ago, SAFETY FIRST said:

This writer 'Michael Bridge' often writes nonsense. 

 

 

But he offers 2 for one!

[NorthernRyland]

6 hours ago, webfact said:

The average annual salary in Thailand is 1,160,000 THB (Thai Baht) or 34,782 US Dollars, according to the exchange rates in August 2021. 

 

Where is this coming from? As a point of reference that's double the amount minimum wage in America.

 

I know lower end labor is in the 12-15k/month range so for the national average to be 96,000/month there would need to be many people making far more than that in order to drive up the average.

 

 

[Troy Tempest]

8 minutes ago, Iron Tongue said:

Count me in on one of those Switzerland jobs that'll pay US$246,971 to teach English to the Swiss!

Deal Breaker!.....For that job you need to be fluent in French, German and Italian as well!

[warrima]

I first came out here on an expat package (single in a junior management role) in 2005. Equivalent salary to home, rent covered,  all car expenses covered (lease, fuel, tolls). The 2007/8 finance crisis hit and first thing the company done was recall all expats (maybe about 20 people). I was given an extra years contract (as i was likely the lowest cost expat) to help cover the mess and tidy things up as we had multiple high end condo rentals vacated mid term, international school positions relinquished, contacts abandoned etc. 

 

When clearing the bills and leases I recall one guy lived in a 120k rental on the river and had three kids at international school at 500k a year each. Plus extras like British club membership. Blew my mind, 3mb+ even before his salary and expenses. 

 

After the year was up i was offered to stay on a local package - essentially salary plus health insurance - or go home to my old position. I stayed as i couldn't imagine going home after almost 5 years here. I'm not even close to the value of the package i first came out on 17 odd years ago.

 

 

[rickudon]

The average wage in Thailand is about 14,000 baht per month. Obviously western expats are not going to work for that, but good luck in finding a well paid job, not easy.

 

https://tradingeconomics.com/thailand/wages

[pedro01]

Work is slavery.

 

It is no more secure than having your own business. Its just the path of least resistance.

 

[itsari]

2 hours ago, jacko45k said:

That surprises me.... I still come across a lot of non-Thais in lower and menial work situations and if anything more of them. The people who service my pool, many serving staff at eateries, and construction... once my gardener turned up with a few Cambodian helpers. 

I remember a builder we hired and could not help being surprised that he would sit in his deckchair for most of the day while his Myanmar workers toiled .

 

[Freddy42OZ]

40 minutes ago, NorthernRyland said:

Where is this coming from? As a point of reference that's double the amount minimum wage in America.

 

I know lower end labor is in the 12-15k/month range so for the national average to be 96,000/month there would need to be many people making far more than that in order to drive up the average.

 

 

 

Thailand has a salary range for Expats of 24,500 THB (US$734) to 433,000 THB (US$12984) in a month. Its average monthly salary is 96,900 THB (US$2,904). 

96,900 THB is the average for Expats.   Which seems low to me. 

Edited May 4, 2022 by Freddy42OZ
typo

[tomazbodner]

2 hours ago, bkk6060 said:

I did not know they could track my salary. 55555.

Revenue department just made a note to check figures on your next por ngor dor 91 submission ????

[scorecard]

I read this report.

 

It's focus changes by the second, it gives 'data' (which seems to be not logical in some instances) which is dificult to really digest and apply.

 

Ultimately do companies who employ 'expats*' actually need to raise salaries to recruit/hold 'expat' employees? And in what specific professions? What economic assumptions are involved? 

 

• *expat.

 

• The writer doesn't explain/define the term. Is it meaning folks who are already employed by a foreign employer and they send staff to Thailand to work with an expat package of salary and benefits? (Note: the report doesn't mention benefits at all).

 

• Or in this report does the writer use the term expat loosely (as is quite common) to basically mean foreigners who are recruited within Thailand?

 

•  Or does the term mean both? 

 

And the report doesn't really give any answers/possible answers to the original question in the headline. 

 

Edited May 4, 2022 by scorecard

[Chaichara]

2 hours ago, jacko45k said:

The people who service my pool...

And expat customers complain about the still low prices for pools, maintenance, and repairs by pool companies which for reasons of quality, professionalism, and knowledge of languages, employ expat staff. Such clients seem to want their cake and eat it. 

[sungod]

6 hours ago, OneMoreFarang said:

Just one of the sentences which disqualifies this writer.

I thought this was supposed to be an expert website for expats in Thailand.

This writer disqualifies himself each time he picks up his pen, this website is stooping to record lows. Even non native English speakers produce better articles than this daily garbage. It does get people like me replying though, which I guess its all about.........

[BangkokReady]

7 hours ago, Airalee said:

These figures are quite misleading.  The ฿24,500 salaries in Thailand are most likely entry level English teachers.  English teachers in Vietnam don’t make US$8,500.   In fact, the starting salaries are closer to US$1,100

 

https://vietnamteachingjobs.com/average-salary-esl-teachers-vietnam/

Yeah, some weird figures there.  I'm led to believe that most expats in Vietnam are teachers, and most make nowhere near $8,500.  I would say that the 24,500 Baht is probably not Western expats also, more likely Filipino.

 

For teaching at least, definitely better pay in Vietnam, but it's more like 35,000 Baht vs. 40,000,000 Dong (USD1,000 vs. USD1,700) for White monkey jobs.  One of the biggest differences in Thailand with teaching is the rate of exploitation, meaning quite a few people take a slice of the foreign teachers wages.  Also there is "no work no pay" in Thailand during school holidays, whereas in Vietnam expats are more likely to be in private language centres.  This keeps the average down in Thailand (along with the quality of education).

[BangkokReady]

1 hour ago, SAFETY FIRST said:

This writer 'Michael Bridge' often writes nonsense. 

And does so poorly, unfortunately.

[RafPinto]

1 hour ago, Troy Tempest said:

Deal Breaker!.....For that job you need to be fluent in French, German and Italian as well!

No ploplem.
I am se best inglish spiker weit and breit.

[Tall Midget]

Does the bloke who writes this stuff actually get paid, or is it a hobby?

 

I gotta GCE in English, where does I apply?

[PB172111]

7 hours ago, Airalee said:

These figures are quite misleading.  The ฿24,500 salaries in Thailand are most likely entry level English teachers.  English teachers in Vietnam don’t make US$8,500.   In fact, the starting salaries are closer to US$1,100

 

https://vietnamteachingjobs.com/average-salary-esl-teachers-vietnam/

Don’t assume

[Harveyboy]

1 hour ago, RandiRona said:

All his knowledge of Thailand is being delivered by his Bar Gal.... in drips of insanity.

can't fault a dripping bar gal ...just saying