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Thailand’s “negative” “real salary” pressure inflation waiting to recover next year ’66

The real salary of “Thailand” this year is expected to be negative by 2.8%, but next year it will recover 2.2%, while Mercer is positive by 4.5% with bonuses 1.3-2.5 months.

At the end of the year so We often see the news “Salary increase survey” They often ask employers of large companies how much their salary will increase this year. and how much next year to use as a direction to measure the working conditions that The private sector is still going strong?

Because if there is no signal to raise the salary / less raise When is it wide at the same time? It can be considered an early signal of “Lay off” In the next step, you can wait.

As for this year, 2022 and next 2023, it is still quite easy to understand that Even if we start hearing the word “Economic recessionin European countries and the United States But it’s still not the main risk hitting our homes right now.

On the contrary, the most terrifying thing is “Inflation” eroding our wages / salaries Get rid of the cost of food, gas, travel, house rent and all kinds of “more expensive” expenses. Therefore, when looking at the private sector wage increase Therefore, we should measure the increase of “Real wage”, which has already subtracted the underlying factor of inflation.

less inflation The real salary in Thailand is “negative”.

Employment consultancy ECA International (ECA) has released its survey of real wage increases around the world. In 2022, 78% of the countries surveyed will have a true “wage drop”, and by 2023 only 37% of countries in the world will have a real wage increase.

And it is interesting that in 2022 in the 10 Asia-Pacific countries with the most real wage increases “Thailand” Ours is in 10th place and is the only country with a “negative” real wage increase rate of -1.8%. Compared to number 1 China which grew by 3.7%, which is the second place. “Vietnam” to a positive 3.2% e “India” In 3rd place, up 2.1%

However, the survey revealed that Thailand’s situation will start improving next year 2023 as the effective wage rate increase is expected to increase by + 2.2%, which will be the 4th highest in the table, behind only India. , Vietnam and China.

The survey of more than 360 multinationals in 68 countries and territories also found that the region most affected is Europe, as average real wages are likely to drop 5.9% this year and drop another 1 , 5% next year, led byUnited Kingdom (United Kingdom) Real wages for this year fell by 5.6% and 4% next year due to high inflation at 9.1%.

the insideUnited States It will fall by 4.5% this year, before rising slightly by 1% next year as US inflation is expected to decline. This is because several rounds of interest rate hikes this year will begin to see results next year.

Mercer Bonne Plus Thailand is expected to raise wages by 4.5% next year.

But on the side of the Mercer survey. The 2022 Total Remuneration Surveys (TRS) of 636 organizations across 15 sectors in Thailand between April and June 2022 predicted that The rate of remuneration in 2023 in Thailand will increase by 4.5%.

Mercer said the rate of increase was close to this year’s effective rate. Between inflation, energy and oil prices rose. This is the result of better economic growth and the return of the general situation to pre-epidemic levels.

However, the median compensation rate was increased in the Asian region. This reflects wage growth in the labor market in emerging and developed economies, led by “Vietnam” Compensation is expected to increase by 7.1% while “Japan” it will be the smallest increase in the region at 2.2%.

Forecast bonus 1.3-2.5 months

In addition, also the results of the survey The payment of the bonus is expected in 1.3-2.5 months, with the highest bonus paid at 2.4 months by the pharmaceutical industry. and medical equipment which is a business that is growing well during covid-19

In terms of policy to adjust the workforce rate in 2023, survey results indicated that More than half (53%) of Thai companies surveyed do not have a policy to change their workforce structure and one in five, that is, about 22% of employers surveyed have a plan to increase their workforce. while only 4% said they would cut staff.

Employee resignations after 2022 are expected to rise to pre-epidemic levels. which has a turnover rate of more than 11.9% and activities related to the consumer goods sector The pharmaceutical and medical device industry will abandon the majority of employees.

It is also expected that Thai companies will find themselves in a highly competitive period in the years 65-66. There is a competition for the staff. Plus, the staff also want change. from treatment during COVID-19 But when the situation improves, they are ready to change jobs which results in a better quality of life.

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