The average salary increase in Thailand in 2013 is projected at 6%, slightly higher than the 5.7% pay rise in 2012, putting the country in the middle spectrum in the Asia-Pacific region, where predictions range from 2.3% to 12.0% - a slight increase from 2012.
Source: Towers Watson
Towers Watson, a global professional services company, says its latest 2012 Third Quarter Asia Pacific Salary Budget Planning Survey indicates that companies across the Asia-Pacific region expect salary budgets in 2013 to grow slightly faster than 2012 in response to better macroeconomic outlook and improved business sentiments.
Over 90% of the survey respondents also plan to hire new employees in the next 12 months, a strong testament to the positive hiring outlook in the region.
For all 13 markets covered in the survey, salary growth rates are expected to outpace projected inflation rates for the respective markets for 2013.
Rachelle Arcebal, Towers Watson's global data services practice leader, Asia Pacific, said business confidence has improved significantly over the last few months, and nearly two-thirds of the companies in the region are now more positive about their business performance.
However, the survey shows that companies in the region are only projecting a slightly faster salary increase for 2013. This indicates that employers are generally still in a cautious mood.
Respondents from both Vietnam and India are budgeting a double-digit salary increase of 12.0% in 2013, the highest within the region. These two countries are also most affected by inflation, with India being expected to post the region's highest inflation rate of 7.6% in 2013, followed by Vietnam with 6.9%
Japan is at the bottom with the projection pay rise of 2.3% in 2013, the same rate at 2012.
The survey also shows that the business outlook in the region has improved significantly over the past six months. Almost two-thirds (65%) of the respondents have a favourable outlook for their business and expect their business performance to improve by end of 2012.
In line with the improved business outlook, 91% of respondents say they plan to hire new employees in the next 12 months, with a strong focus on sales, engineering and marketing jobs.
In terms of staff turnover rates, China, India, Japan, Singapore and Thailand are expected to register slightly higher voluntary staff turnover in 2013, while Indonesia, Malaysia, Taiwan and Vietnam are projected to have lower voluntary staff turnover in 2013.