Less than 5% pay rise for Thai employees this year

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.

The survey also revealed sector-specific salary projections, with Thai retail workers, expected to see the most significant pay rise at around 6.1%, followed by those in the technology field (6%), bioscience and medical equipment (5.9%), production (5.8%), and financial services (4.8%), reported The Nation.

Furthermore, the survey shed light on job retention rates, indicating that approximately 14% of Thai workers left their jobs in 2023, a decrease from 15.4% the previous year. This figure compares favourably with turnover rates in other countries such as Indonesia, the Philippines, Malaysia, Singapore, and Vietnam.

In related news, Prime Minister Srettha Thavisin declared on January 19 that Thailand must abandon its reliance on low labour costs to entice foreign investments, pushing for a raise in the country’s minimum wage. Addressing a panel discussion titled Learning from ASEAN at the World Economic Forum in Davos, PM Srettha emphasised a paradigm shift in priorities.

In other news, the Labour Ministry, headed by Pipat Ratchakitprakarn, is considering raising the minimum wage for certain professions as a Songkran festival gift. The announcement is expected to take place within a year, covering the entire country.