Salaries in Thailand are projected to increase by 5.8% on average this year, while the inflation rate is going up to 3.2%, says Towers Watson & Co, the New York-based professional services company.
The annual salary survey in 18 countries across Asia-Pacific found salaries in the region are on the rise and the situation in Thailand is more moderate than in some neighbouring countries.
The biggest projected salary increases are expected in Bangladesh (12.1%), Vietnam (12%), India (11.2%), Indonesia (9%), China (8.75%) and the Philippines (7%).
At the other end of the spectrum are Japan and Brunei, with the lowest rises expected at 2% and 1%, respectively.
For Thailand, the financial services sector is poised to experience a slightly higher overall increase of 6.5%.
Pichpajee Saichuae, the managing director of Towers Watson (Thailand), explained that the statistics on salary movements together with key economic indicators can help companies plan their compensation budgets.
Currently, Thailand has the lowest unemployment rate in the region at only 1%.
Although this figure is up from 0.8% last year, it is clear the country is facing strong pressure in the job market.
The low unemployment is a positive sign of economic activity, reflecting high demand for goods and services.
On the other hand, it also shows a lack of human resources that can have a negative effect in the long term.
"Thailand has long suffered from a lack of quality talent and still faces issues over its workforce's language skills," said Ms Pichpajee.
Thai employees will face competition from capable candidates from across the region when the Asean Economic Community is launched.