Less than 5% pay rise for Thai employees this year

[snoop1130]

 

According to Aon Plc’s latest survey, Thai employees are set to experience a modest 4.9% pay rise this year, trailing behind their regional counterparts.

 

The forecast anticipates a slight uptick from 4.7% last year but still falls short of the salary growth expected in Indonesia (6.5%), the Philippines (5.5%), and Malaysia (5%). Meanwhile, Singapore is projected to witness a 4% increase in wages.

 

In contrast, Vietnamese workers are in for a pleasant surprise, with a projected salary rise of a whopping 8% this year, up from 7.5% in 2023 according to the survey.

 

Aeon attributed the modest growth in Thai workers’ pay to the slowdown and uncertainty in the country’s economy. Rahul Chawla, Aeon’s head of Talent Solutions for Southeast Asia, highlighted the challenge many businesses face in adjusting employee salaries to remain competitive. He suggested that maintaining a flexible workforce structure is crucial for success.

 

By Mitch Connor

Caption: Photo courtesy of iStock

 

Full story: The Thaiger 2024-02-09

 

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[StayinThailand2much]

Considering that the inflation is, reportedly, "very low like one percent, or so", 4.9 percent doesn't seem so bad. On the other hand, of course, with "unemployment below 2 percent", you'd think that there's more pressure to raise employees' pay...

[worgeordie]

1 %  the Governments figures .....in the real World it's much higher ,especially the

stuff I buy , most people here still work a 6 day week , when I first started work 

it was 5,5 day week and that was 60 odd years ago , my daughter got a new job

only 5 day week ,good I thought , but it's 10 hour day ,too much overtime but 

unpaid !

 

regards worgeordie

[dinsdale]

Very little indeed. I wonder how many non-Thais actually got a reduction in pay. I also wonder how profits are going for the super rich. Very nicely I would think.

[retarius]

35 minutes ago, worgeordie said:

1 %  the Governments figures .....in the real World it's much higher ,especially the

stuff I buy , most people here still work a 6 day week , when I first started work 

it was 5,5 day week and that was 60 odd years ago , my daughter got a new job

only 5 day week ,good I thought , but it's 10 hour day ,too much overtime but 

unpaid !

 

regards worgeordie

You are right , farang food has rocketed.

[dinsdale]

The whole covid/inflation period in this time in the World's history has been an absolute travesty to the majority of the population and an absolute gold mine to a very, very, very small % of the World's population. For the last 4 yrs we have been witnessing a crime against humanity. 

[hotchilli]

12 hours ago, snoop1130 said:

Aeon attributed the modest growth in Thai workers’ pay to the slowdown and uncertainty in the country’s economy.

Thailand is going to have a bumpy ride this year.

It's economy needs real investment, industry leaders need to re-vamp their business structures, tourism isn't enough to save Thailand.

[Srikcir]

For some time now the rate of inflation has been 2.5%. So a less than 5% pay rise doesn't seem extraordinary.

[stargrazer9889]

Good news, 10 percent or more raise for management and business owners.

555

[spidermike007]

16 hours ago, StayinThailand2much said:

Considering that the inflation is, reportedly, "very low like one percent, or so", 4.9 percent doesn't seem so bad. On the other hand, of course, with "unemployment below 2 percent", you'd think that there's more pressure to raise employees' pay...

Are you really buying those inflation numbers? I see things going up quite a bit, nothing like back in the US but still I'm guessing the real inflation here has to be at least 10%. 

[realfunster]

4 hours ago, Srikcir said:

For some time now the rate of inflation has been 2.5%. So a less than 5% pay rise doesn't seem extraordinary.

 Indeed, salary increase inflation has been running well above underlying inflation and reasonably above GDP growth for pretty much the last 20 years. If you read the annual reports such as the one in the OP it’s typically around 5-7% increase per year. Even during COVID 6-8-10% pay rises were being given.

 

Perhaps more reflective of a limited talent/resource pool, worsening demographics and high competition for people in the job market than anything else ?

[StayinThailand2much]

3 hours ago, spidermike007 said:

Are you really buying those inflation numbers? 

 

No, I don't. That's why I put it in quotation marks. 

[Srikcir]

On 2/10/2024 at 11:22 AM, spidermike007 said:

Are you really buying those inflation numbers? I see things going up quite a bit, nothing like back in the US but still I'm guessing the real inflation here has to be at least 10%. 

PM Thavisin apparently "buys" them, in effect apologizing for giving the public the impression that he questioned the legitimacy of the published rates. Perhaps that's why Thavisin is now calling for only a 25 basis-point rate cut that would help people (debatable) that would not raise inflation further.