[Thailand] Survey projects 2021 salary increase despite COVID-19 crisis

A new survey projects that salaries in Thailand will increase in 2021 despite the financial impact of the COVID-19 pandemic. Initially, companies in Thailand had forecasted an average 5 per cent overall increase in salaries for 2021 - when surveyed in the first half of 2020 - however, further surveys reflect a moderation at around 3 per cent.

The projection comes from Mercer’s annual Thailand Total Remuneration Survey (TRS) 2020. The survey polled 577 companies across multiple industries in Thailand between April and June this year. Additional surveys were conducted in July and August to reflect the fast-changing market environment.

Piratat Srisajalerdvaja - Mercer’s Career Products Leader for Thailand - said, “Given the sustained uncertainty in the economic environment, companies are taking a more cautious approach, reviewing and revising their salary increment budgets. Two in five companies have indicated that COVID-19 has impacted their planned increases for 2020.”

The projected salary increments come at a time when the economic outlook for Thailand is reportedly weak; Gross Domestic Product (GDP) is expected to contract by 7.8 per cent in 2020. The future remains uncertain despite a forecast for the economy to rebound by 3.5 per cent in 2021. Scand Asia examines the survey’s findings further.

A new survey projects that salaries in Thailand will increase in 2021 despite the financial impact of the COVID-19 pandemic. Initially, companies in Thailand had forecasted an average 5 per cent overall increase in salaries for 2021 - when surveyed in the first half of 2020 - however, further surveys reflect a moderation at around 3 per cent.

The projection comes from Mercer’s annual Thailand Total Remuneration Survey (TRS) 2020. The survey polled 577 companies across multiple industries in Thailand between April and June this year. Additional surveys were conducted in July and August to reflect the fast-changing market environment.

Piratat Srisajalerdvaja - Mercer’s Career Products Leader for Thailand - said, “Given the sustained uncertainty in the economic environment, companies are taking a more cautious approach, reviewing and revising their salary increment budgets. Two in five companies have indicated that COVID-19 has impacted their planned increases for 2020.”

The projected salary increments come at a time when the economic outlook for Thailand is reportedly weak; Gross Domestic Product (GDP) is expected to contract by 7.8 per cent in 2020. The future remains uncertain despite a forecast for the economy to rebound by 3.5 per cent in 2021. Scand Asia examines the survey’s findings further.