The average employee salary in Thailand is set to increase by 5.0% in 2025, equivalent to this year, according to Mercer, a human resources and professional services consultancy.
Mercer's Total Remuneration Survey 2024 analyses remuneration trends and policies across more than 5,000 roles in over 700 companies in Thailand.
The analysis found salaries are set to increase at the same pace as in 2024, with all of the companies surveyed set to provide increases in 2025, compared with 99.8% in 2024.
The top factors influencing salary increases in 2025 are individual performance, salary range, organisation performance and the organisation's competitiveness in the job market, according to Mercer.
Some 91% of the organisations surveyed reported having short-term incentive plans such as bonuses, while the percentage of companies offering long-term incentives such as stock options grew from 78.9% in 2023 to 80.7% in 2024. Among other observations:
The consumer goods industry is focused on base salaries, which account for 75% of total remuneration packages. The automotive industry offers the highest percentage of short-term incentives, making up 23% of total remuneration packages.
The life sciences industry remains the highest-paying sector in Thailand, offering 20% more than the average for annual base salaries.
Despite the prevalence of flexible benefit schemes internationally, their use in Thailand remains limited, with less than one-quarter of surveyed companies offering these benefits to their employees.
"The average salary increase of 5% in 2025 reflects an ongoing commitment by Thai organisations to invest in their workforces," said Thira Laulathaphol, career principal at Mercer's Thailand.
"With 100% of surveyed companies planning salary increases, it is clear that Thailand has a competitive job market. In this environment, it is crucial for HR leaders to adopt a holistic approach to total compensation. This includes salary adjustments and short-term and long-term incentives, while addressing the evolving well-being needs of employees.
"By effectively adapting to changing expectations, organisations can attract and retain top talent in an increasingly complex landscape."