Thai Salaries to Rise by 5% in 2025 Amid Competitive Job Market

[webfact]

Picture courtesy; MGR online

 

The average salary in Thailand is expected to increase by 5% in 2025, maintaining the growth rate of the current year. This insight comes from Mercer, a leading human resources consultancy known for its comprehensive surveys of employment trends. This anticipated salary hike highlights the enduring commitment to workforce investment amid a competitive labour market.

 

Mercer’s Total Remuneration Survey 2024, which forms the basis of this prediction, analysed pay trends and compensation policies across more than 700 companies and over 5,000 roles in Thailand.

 

Notably, the survey found that all the companies participating in the analysis plan to implement salary increases next year, compared to 99.8% in the current year. This indicates a universal resolve to secure salary growth as a means to attract and retain talent.

 

The survey identified several factors contributing to the impending pay increases, including individual employee performance, overall organisational performance, and competitive pressures in the job market.

 

Furthermore, the analysis underscores a significant shift towards incorporating incentives as an integral part of compensation packages, marking a nuanced approach to employee remuneration.

Within specific industries, the life sciences sector emerges as the highest-paying, offering salaries that stand 20% above the national average. The automotive sector takes the lead in short-term incentives, with these bonuses comprising 23% of the total remuneration, a contrast to the consumer goods sector where base salaries constitute 75% of the overall pay package.

 

Despite a global trend favouring the adoption of flexible benefit schemes, such initiatives remain relatively rare in Thailand, with only a minority of companies implementing them. This indicates a potential area for growth in how Thai companies could enhance their compensation frameworks.

 

Significantly, 91% of the organisations surveyed already have short-term incentive plans, such as bonuses in place. Meanwhile, long-term incentives like stock options have seen a slight rise in popularity, with an increase from 78.9% in 2023 to 80.7% in 2024, reflecting a slow but steady acceptance of these retention strategies.

 

Thira Laulathaphol, career principal at Mercer Thailand, commented on the findings, emphasizing the ongoing focus on workforce investment. "The average salary increase of 5% in 2025 reflects an ongoing commitment by Thai organisations to invest in their workforces.

 

With every surveyed company planning raises, it’s clear that Thailand’s job market is highly competitive. HR leaders must adopt a holistic approach to compensation that includes not just salary but also a mix of incentives and employee well-being."

 

Overall, while base salaries remain a foundational element of employee compensation in Thailand, the growing trend of incentive-based pay signals a shift towards more dynamic and adaptable remuneration packages, aligned with the country's thriving economic environment, reported Bangkok Post.

 

-- 2024-12-13

 

 

[ikke1959]

Happy to hear... but the daily wages can't get any raise but that are the ones that really need it.... Shame for the people who decide this to fill their pockets again instead of thinking about the poorer...... And than Thailand pretends it is a Buddhistic country....

[Metapod]

1 hour ago, ikke1959 said:

Happy to hear... but the daily wages can't get any raise but that are the ones that really need it.... Shame for the people who decide this to fill their pockets again instead of thinking about the poorer...... And than Thailand pretends it is a Buddhistic country....

 

raising the minimum wage doesn't help, it actually hurts the lower class.