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.

[ikke1959]

37 minutes ago, Metapod said:

 

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

Explain please how can more money hurts the lower class

 

[Metapod]

48 minutes ago, ikke1959 said:

Explain please how can more money hurts the lower class

 

 

raises prices on all goods and services, they end up in the same place. it also makes small businesses less competitive and reduces the amount of jobs available, which means more unemployment and government support (which thailand doesn't have a lot of). it also doesn't address why they are in the bottom class to begin with. you can't raise minimum wage to bring people into a middle class, it just doesn't work.

 

if you care about helping poor people, you should focus on educating them on basic finances and ways to build/learn skills to make themselves more valuable. 

 

artificially raising the floor of labor pricing just hurts the bottom and middle class

[ikke1959]

2 hours ago, Metapod said:

 

raises prices on all goods and services, they end up in the same place. it also makes small businesses less competitive and reduces the amount of jobs available, which means more unemployment and government support (which thailand doesn't have a lot of). it also doesn't address why they are in the bottom class to begin with. you can't raise minimum wage to bring people into a middle class, it just doesn't work.

 

if you care about helping poor people, you should focus on educating them on basic finances and ways to build/learn skills to make themselves more valuable. 

 

artificially raising the floor of labor pricing just hurts the bottom and middle class

First they will never educate people properly as when they start to think they see what is going on in Thailand and the elite will loose their power.. Secondly if people can spend more businesses earn more a thing that is al\ways being ignored or told, as it could be a threat to more salaries hike...All over the world all businesses pretend to have a lot of costs and can't reward the workers while the profits rise every year...Unfortunately Thailand doesn't have labour Unions... It wouls change a bit.. yes life could be a bit more expensive but the living circumstances would be improved...And in Thailand the rich are only here to help themselves to get richer while the poor even drown...

[Rampant Rabbit]

On 12/13/2024 at 2:48 PM, ikke1959 said:

Unfortunately Thailand doesn't have labour Unions.

id  call that a MASSIVE bonus, many Thais arent worth the money they are paid.

[Ralf001]

On 12/13/2024 at 2:48 PM, ikke1959 said:

Unfortunately Thailand doesn't have labour Unions.

 

Thailand most certainley does have labour Unions.

 

god bless em, my annual bonus is up to 5 months salary !

 

3 months fixed.

2 months performance based.

[Ben Zioner]

Well, this must be the Thai answer to run away inflation..

[Will B Good]

Thai salaries to rise............. quickly transformed into......... the average salary in Thailand is expected to increase.