Monday, October 29, 2007

Thai employees are likely to see an average salary increase

Average salary hike put at 6.3%
Thai employees are likely to see an average salary increase of 6.3% at the end of this year. Salary increases are expected to range from 6.2% to 6.7%, while the average fixed bonus will be one month, according to the international human resources firm Hewitt Associates.


The company projected a 6.4% average salary increase for the end of next year, with the range of 6.4% to 6.7% depending on employee level, and a fixed bonus of one month's salary.

Hewitt based its findings on data collected from 166 organisations in Thailand between July and October.

According to Kulshaan Singh of Hewitt in Singapore, employees in business and computer services would receive the highest raises of 7.4%.

The lowest increase this year would be 4.8% among manufacturers of computers and related products.

The hospitality and restaurant businesses also ranked low in the survey.

Other sectors with high forecast increases include consumer products (non-durable goods) at 7.2%, other manufacturing activities (7.1%), automotive (6.9%), pharmaceuticals (6.6%) and energy/oil (6.3%).

The lower range includes food and beverages (6.0%), other services (5.9%), chemicals (5.8%), electronics/electrical goods (5.8%), banking and finance (5.8%), consumer products (durable goods) at 5.7% and telecommunication (5.7%).

He said the average increase for junior management, supervisory and professional workers would be 6.7% while senior management would receive about 6.2%.

Mr Singh said the survey showed that 56.3% of respondents provided fixed bonuses for their employees while 52% also offered long-term incentives for employees.

Bubphawadee Owararinth, business development director of Watson Wyatt (Thailand) Ltd, said the company's strategic reward research showed that countries in the Asia Pacific where salary increases would average below 5% were Australia, Japan and Taiwan.

Raises in Hong Kong, Malaysia, South Korea and Thailand would be in the range of 5% to 10%.

Countries with increases above the 10% level are India, Indonesia and the Philippines.

She said the increases would be performance-based. The research reveals that employers are paying more attention to designing reward programmes by considering issues of learning and training programmes, quality work environment, rotational assignments and cash incentives respectively.


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