Salary hike expected for employees in Thailand
This was according to Mercer’s recent Total Remuneration Survey (TRS), which showed that the chemical, high tech, and life sciences sectors are expected to grow the most, by 4.9%, 4.8%, and 4.8%, respectively.
Mella Daracan, Mercer’s Career Products Business Leader for Thailand, said that these salary increases are keeping up with inflation. When combined with Thailand’s recent 5% increase in minimum wage, lower-wage workers may be able to alleviate some of their concerns about rising living costs.
Furthermore, in terms of variable incentives, employees in Thailand can expect bonus payouts ranging from 1.3 to 2.5 months, with the life sciences industry providing the highest median payout of 2.4 months.
According to the survey, employers in Thailand are keeping the status quo on recruitment efforts. More than half (53%) of survey respondents stated that their headcount will remain unchanged in 2023. One-fifth of businesses (22%) plan to increase headcount, while only 4% plan to reduce headcount, down from 7% last year.
Juckchai Boonyawat, Mercer’s CEO for Thailand, added, “To attract talent, companies are offering higher wages and better benefits. Employees have also reported burnout and exhaustion in recent years and a desire to change.”
Competing solely on wages, however, is unsustainable, he cautioned. Employers should instead focus more on their employees’ value proposition in areas such as pay transparency, a clearer career path, and improved wellbeing through flexible work arrangements and wellness programmes.