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Thailand Salary Increase Prediction and other Employment Issues
by Eden • Mon, 07 Nov 2022 09:11AM
Recent surveys show that there will be up to a 4.9% salary increase in several industries in Thailand, also a 5%-8% increase in the minimum wage. There are also more interesting changes and trends in employment and the workplace.
2022 is expected to be the year of economic growth in Southeast Asia. Currently, talent trends and salary trends are starting to return to pre-pandemic levels. Market growth and performance of companies in Southeast Asia are considered more optimistic than those in the other sub-regions of the Asian Pacific, according to WTW.
Among other countries in Southeast Asia, Thailand is one of the countries that are forecasting the highest market growth. Therefore, there is a higher salary increase expected up to 4.9%. The largest rise will be in the chemicals, fintech, hi-tech, and life science sectors.
Other than these things, what else is there to explore about employment trends and Thailand's salary increase?
Minimum Wage Increases and Inflation
Besides salary increases in several sectors and industries, Thailand also announced a 5% - 8% increase in the minimum wage. The latest survey by Mercer shows that these two things combined may increase inflation and put more pressure on businesses. But overall, Thailand’s economy still looks more favorable than in several previous years.
Profit Decline in Several Industries
Nikkei Asia reported that Thailand's minimum wage increase also caused a spike in inflation. In August, the inflation rate hit 7.86%, one of the highest in 13 years. For the rest of 2022, Thailand’s Ministry of Commerce predicts a 5.5% to 6.5% increase.
This high level of inflation in Thailand will be concerning for several industries. For example, the labor-intensive agriculture, retail, restaurant, construction, garment, and hotel industries. These sectors are at risk of suffering a 5% to 15% profit loss.
The Urgent Need for Talent Management
As a result of the economic recovery, there will be relatively high competition for top talent in Thailand. Because more than half of the companies will not change their headcount in 2023. Meanwhile, there may also be an increase in voluntary attrition numbers. This is why companies need to re-hire and expand their talent pools to be able to meet market demands.
The Importance of Employee Value Preposition
To attract and retain top talent in Thailand’s highly competitive employment environment, companies cannot rely only on competitive wages. To appear as promising employers, companies need to show other advantages. For example pay transparency, a clear career path, and a focus on employees' well-being.
Skills Will Determine the Pay Rise
According to a recent survey, employees in Thailand can expect incentives or bonus payouts from 1.3 to 2.5 months. But to get there, The Nation suggests that employees also need to develop multiple skills. Aside from technical expertise, employees also need to have digital expertise, soft skills, and adaptability skills.
It is predicted that the next payment trend in Thailand will depend on the employee's ability to show skills that meet the employer’s needs.
Also Read: How to Negotiate Salary Raise in 2022
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