Pay increases in Thailand will be the smallest in Southeast Asia, varying from 1.9-2 per cent, compared to 4.7 per cent and 4.5 per cent in pacesetters Indonesia and Vietnam.

Recent research from global management consultancy Hay Group shows that China, India and Eastern Europe will top the global pay-rise ladder this year, while pay hikes for workers in the West are expected to fall below average.

Hay Group's "Global Pay Day Report", compiled using PayNet, one of the world's most comprehensive global pay databases, forecasts salary increases this year for over 50 countries worldwide.

The report estimates salary rises for administrative, professional and senior management levels, based on employers' expected increase in salaries once inflation has been discounted. The study reveals some fascinating regional and national trends.

Ben Frost, a Hay Group Consultant, said that in contrast to Europe and North America, workers across Southeast Asia are experiencing healthy salary growth in both the more developed economies like Singapore and emerging economies such as Vietnam.

However, Thai professionals are expected to lag behind. Pay rises after inflation will range from 1.9-2 per cent, lower than the Philippines' 1.5-2.5 per cent and Hong Kong's 2.2-2.5 per cent.

The dismal pay prospects fit the economic outlook. The Bank of Thailand and the Finance Ministry have already lowered their economic forecasts for this year.

Exporters have also cried foul over the strong baht which would eat into their profit margins or even lead to a loss in the sector, which contributes about 60 per cent of gross domestic product.

Thailand is not among the five countries worldwide with the lowest real pay increases - the United Arab Emirates, Hungary, Ireland, Venezuela and Austria.

In some countries, workers' pay could be cut.

In Singapore, real pay increases will range from 2.8-3.2 per cent, thanks in part to low inflation.

Impressive economic acceleration in India and China is hav-

ing a dramatic impact on pay packets.

China tops the tables for each of the three job categories, with a predicted 7.9-per-cent increase for administrative workers, 7.8 per cent for professionals and an impressive 8.9 per cent for senior management.

"The wealth created by rapid, focused economic development is resulting in a pay boom for Chinese workers, who will enjoy some of the largest real pay rises on offer worldwide in 2007," said Hern Yin Goh, manager of Hay Group Reward Information Services in Shanghai.

Extremely high pay rises in India last year - 7.2 per cent across the board - look set to continue into 2007.

The country boasts the second highest pay increase predictions, with hefty salary increases of 6.2 per cent forecast across the three job levels.

Senior managers can anticipate a real rise of 6.9 per cent, and professionals and administrators 5.9 per cent.