The average salary for employees in Thailand is projected to increase by 5% in 2025, maintaining the same growth rate as observed in the previous year, as reported by Mercer, a leading human resources and professional services consultancy.

Conducted through Mercer's Total Remuneration Survey 2024, the research encompasses remuneration trends and policies across more than 5,000 roles in over 700 companies operating within Thailand.

The survey indicates a continuation of salary increments, with 100% of the companies surveyed preparing to adjust salaries in 2025, slightly up from 99.8% in 2024.

Key drivers influencing the projected salary increases include individual performance, established salary ranges, organizational performance, and the need for competitiveness within the job market, according to Mercer’s findings.

The survey also highlights the prevalence of short-term and long-term incentive schemes.

Approximately 91% of surveyed organizations reported offering short-term incentives, such as bonuses.

Moreover, the percentage of companies providing long-term incentives, like stock options, rose from 78.9% in 2023 to 80.7% in 2024.

Sector-specific insights from the survey reveal that the consumer goods industry places significant emphasis on base salaries, which comprise 75% of their total remuneration packages.

Meanwhile, the automotive sector allocates the highest percentage towards short-term incentives, accounting for 23% of their overall compensation packages.

The life sciences sector continues to lead as the highest-paying industry in Thailand, offering base salaries approximately 20% above the national average.

Despite global trends favoring flexible benefit schemes, their adoption in Thailand remains limited, with fewer than a quarter of surveyed companies providing such benefits to their employees.

"The average salary increase of 5% in 2025 underscores the commitment of Thai organizations to invest in their workforce," said Thira Laulathaphol, Career Principal at Mercer's Thailand.

"With all surveyed companies planning salary hikes, Thailand's competitive job market becomes evident.

In this dynamic environment, it is essential for HR leaders to embrace a comprehensive approach to total compensation, encompassing salary adjustments and incentives while catering to the evolving well-being demands of employees."

Implemented effectively, these strategies could enable organizations to attract and retain top talent in an increasingly challenging landscape.