According to a recent report by ECA International, a global human resources consultancy, Thai workers are projected to receive a 4.9% increase in their salaries in 2024, after accounting for inflation. This is slightly higher than the average increase of 4.7% for workers in the Asia-Pacific region, and much higher than the global average of 2.5%.
The report, which surveyed over 300 multinational companies across 68 countries, found that Thailand ranked 10th in the region and 14th in the world in terms of real salary growth. The report attributed this to the relatively low inflation rate in Thailand, which is expected to be 1.1% in 2024, compared to 2.2% in the region and 2.7% in the world.
Lee Quane, the regional director for Asia at ECA International, said that Thailand's economy has shown signs of recovery from the impact of the Covid-19 pandemic, which has boosted the confidence of employers and employees. He added that the government's stimulus measures, such as the co-payment scheme and the cash handouts, have also helped to support consumer spending and domestic demand.
However, Quane also warned that Thailand still faces some challenges, such as the slow vaccination rollout, the political instability, and the uncertainty over the reopening of the tourism sector. He said that these factors could affect the economic growth and the salary prospects of Thai workers in the future.
He also noted that the salary increases in Thailand and other emerging markets in the region are still lower than the pre-pandemic levels, and that the gap between the developed and developing countries has widened. He said that this could pose a risk of talent retention and attraction for employers, especially in sectors that require high-skilled workers.