Mercer: Thailand’s Average Salary to Climb 5.2% in 2026

**Thailand’s Salary Outlook for 2026: A 5.2% Forecast Amidst Shifting Workforce Dynamics**

BANGKOK – Economic headwinds and evolving talent acquisition strategies are shaping the compensation landscape in Thailand, with average employee salaries projected to rise by 5.2% in 2026, a slight uptick from the 5% increase observed in 2025. This forecast, detailed in Mercer’s *Total Remuneration Survey 2025*, underscores a persistent focus on talent retention and the strategic recalibration of reward structures within the Thai corporate sector.

The survey, which encompasses remuneration trends across more than 5,400 roles in over 815 companies spanning all industries, indicates a near-universal commitment to salary adjustments. A staggering 99.6% of surveyed organizations plan to implement salary increases in 2026, mirroring the robust 99.7% figure from the previous year. This widespread practice highlights the competitive pressure employers face in attracting and retaining skilled professionals.

Several key drivers are fueling these salary hikes. Intense competition for talent, particularly for specialized skill sets across various sectors, remains a primary factor. Furthermore, organizations are sharpening their focus on merit-based compensation, prioritizing both employee productivity and cost-effectiveness in their remuneration strategies.

From an industry perspective, the Energy sector is expected to see the most significant average salary increase at 6.0%, followed by Consumer Goods at 5.7%, and the Automotive sector at 5.5%. These figures reflect the demand and growth within these particular economic areas.

The broader economic climate has also influenced workforce composition. The report notes a decrease in full-time employees in 2025, with numbers dipping below those recorded during the pandemic in 2021. However, this trend is not uniform, with the Energy and Life Sciences sectors bucking the general decline by reporting an increase in full-time staff. This dichotomy suggests a nuanced impact of economic pressures, with certain industries demonstrating resilience and even growth.

In response to the dynamic talent market and evolving employee expectations, Thai companies are strategically adjusting their remuneration packages. Short-term incentive plans, such as bonuses, are a staple, with 95.3% of surveyed organizations offering them. More notably, there’s a significant surge in the adoption of long-term incentives, including stock options, with the percentage of companies offering these rising from 19.3% in 2024 to 38.2% in 2025. This trend indicates a growing emphasis on aligning employee interests with long-term company performance and shareholder value.

Beyond traditional salary and incentive structures, companies are increasingly leveraging flexible benefits to enhance their total rewards offerings. A notable 23.5% of organizations now provide flexible benefits, with health insurance (89.5%), leisure and sports club subscriptions (76.6%), and medical check-ups (64.9%) being the most popular components. This approach allows employees to tailor their benefits to their individual needs, fostering greater satisfaction and loyalty.

Thira Laulathaphol, Mercer Thailand’s Data Intelligence & Academy Solution Leader, commented on the findings: “Strategic shifts in people management are increasingly evident, propelled by Thailand’s technological advancements and organizational transformations in recent years. As corporate strategies evolve rapidly alongside innovative HR practices, data has become indispensable for organizations aiming to remain competitive in the talent market. By effectively responding to shifting expectations, companies can successfully attract and retain top talent in today’s increasingly complex environment.”

The insights from Mercer’s survey provide a comprehensive overview of the compensation and benefits landscape in Thailand, highlighting the critical role of strategic remuneration planning in navigating the current economic climate and securing a competitive edge in the war for talent.