Summary of 2025: Pressure on Thai Organizations to Raise Salaries by Only 4.5% – How to Prepare Financially to Avoid Falling Behind

The year 2025 marks an especially challenging time for workers and organizations in Thailand, as pressures from both external and internal factors have forced overall salary increases to notably decline.

A recent survey by Deloitte Thailand reveals that the projected average salary increase for 2025 is only 4.5%, clearly lower than the historical average of 5%. This decrease is more than a statistic; it signals the "cautious management" that Thai organizations are currently facing.

Twofold pressures: "Economic sluggishness versus technological disruption"

More than 176 leading organizations in Thailand participating in the survey are experiencing a "squeeze" from two simultaneous fronts, including...

1. An economic recovery slower than expected. While some organizations achieved their targets, 35% admitted their growth was below forecast. Additionally, rising cost pressures led 57% of organizations to announce or plan cuts in compensation and overall benefits budgets.

2. The wave of AI and technology disruption. Technological changes driven by artificial intelligence (AI) have become key to future competitiveness, forcing organizations to make difficult decisions: whether to invest in AI or increase employee compensation.

Small salary increases… and uncertain bonuses!

While the overall salary increase average is 4.5%, interesting disparities lie beneath this figure.

• Stable sectors such as energy and utilities maintain salary increases at 5% and offer the highest bonuses in the market (approximately three months' pay).
• The most pressured and challenged sectors are retail and technology, with average salary increases as low as 4% and significantly lower bonuses (around 1.5 months). This pressure is reflected in turnover behavior, especially in retail, which has a high voluntary resignation rate of 32.9%.

AI is not replacing people but changing the "value" of skills.

The most critical change workers must understand is that AI is altering the compensation equation. Ariya Prukphon, technology and organizational transformation leader at Deloitte Thailand, clearly explains that AI is not replacing people but changing the value of skills in the labor market.

Organizations are shifting from "pay for job" toward "pay for skills." Integrating AI and technology has thus become the most valuable skill organizations are willing to invest in.

Data confirms that over 55% of organizations choose to offer above-market compensation for "positions with high business impact," despite overall budget constraints.

Basic financial preparation to survive the era of stagnant salary growth.

With uncertain income, relying on traditional salary raises or bonuses carries high risks. Workers must adjust fundamental financial strategies to build their own stability.

1. Adjust mindset: consider salary as "fixed income" and bonuses as "extra money."

Since bonuses tend to plateau or decrease in many industries (averaging about two months), never include bonuses in your monthly expense calculations. Plan finances based solely on net salary. If a bonus is received, treat it as extra money to save or invest.

2. Build a larger "emergency fund."

With salary increases below average and economic pressures, career uncertainty rises. The solution is to increase emergency savings to cover at least six months of expenses (or more if working in high-turnover sectors like retail). Having reserves gives time to find new jobs or develop skills without debt pressure.

3. Investing in "skills" yields the highest returns.

In an era when organizations pay above market rates for specialized skills, especially in AI and technology, developing skills offers the best long-term return on investment.

Allocating part of your budget to learning and training in market-demanded skills is essential. More importantly, transform new skills into tangible achievements so you can advance to high-impact positions that organizations seek, even during economic slowdowns.

Ultimately, adapting today builds long-term competitive advantages. Organizations emphasizing career development (61%) and special promotions (65%) use these tools to retain talent, reaffirming that self-improvement is the true survival strategy.

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