Pay rises, bonuses lower this year, FTI survey 

Economy November 24, 2016 01:00


 SALARIES will have risen by an average of 4.17 per cent this year, lower than last year’s 5.04 per cent, and the average year-end bonus will be 1.87 months, lower than last year’s 2.34 months, according to a survey by the Federation of Thai Industries (FTI).

The survey conducted on 535 businesses in 12 industries in July found that the auto-parts industry aimed to pay the highest average bonus of 7.9 months, followed by electrical appliances, construction materials, machinery and engineering, and rubber and rubber wood. 

Large enterprises are expected to pay more generous bonuses and increase salaries more than small and medium-sized enterprises.

The lowest bonuses will be half a month.

Of the businesses surveyed, 88 per cent will pay bonuses this year. About 84 per cent said they had increased salaries for their employees.

Thavorn Chalassathien, vice chairman of the FTI, said most businesses would increase salaries by 2.5-4 per cent.

Respondents said the pay increases would not be high this year as inflation is quite low.

The survey also found that most businesses would maintain their headcounts, while 46 per cent will need to employ more labour. Targeted workers are mainly from lower Mathayom 6, accounting for 49 per cent, followed by vocational-school graduates (36.8 per cent) and university graduates (13.3 per cent).

According to the Industry Ministry, 6.18 million Thais are employed in the industrial sector, 1.1 million of whom are professional-level. Thailand will need about 277,085 new employees to replace retired workers next year.

Meanwhile, the Commerce Ministry has instructed provincial officers to monitor prices stringently to prevent increases without fair reasons after the increase of minimum wages by Bt5-Bt10 in 69 provinces, which will go into force next year.

Commerce Minister Apiradi Tantraporn said the minimum-wage increases should not drive up prices, as her ministry had found that the average cost of production will increase by only 0.01-1.02 per cent.

Food and beverage prices will increase by only 0.02-0.3 per cent, while other consumer goods will go up by only 0.05-0.44 per cent.