Mercer Reveals Average Salary in Thailand Set to Increase by 5.2% in 2026
Mercer’s
The top factors influencing salary increases in 2026 are intense talent competition, particularly in several sectors for specialized skills, and an unprecedented focus on merit-based compensation, with organizations placing a strong emphasis on both productivity and cost-effectiveness. From an industry perspective, the Energy sector leads the pack with an expected average salary increase of 6.0%, followed by the Consumer Goods sector at 5.7% and the Automotive sector at 5.5%.
The ongoing challenging economic outlook has impacted today’s workforce structure, leading to a notable decrease in full-time employees in 2025, with numbers even lower than those in 2021 during the pandemic. However, the impact varies across industries, with Energy and Life Sciences observing an increase in full-time employees.
In response to a competitive talent market and shifting expectations, the study also highlights that Thai companies are planning to adjust their remuneration strategies next year. Today, 95.3% of the organizations surveyed have short-term incentive plans, such as bonuses, while the percentage of companies offering long-term incentives, including stock options, increased from 19.3% in 2024 to 38.2% in 2025.
In addition, an increasing number of companies (23.5%) offer flexible benefits as part of their remuneration package to professionals, with
Thira Laulathaphol, Mercer Thailand’s Data Intelligence & Academy Solution Leader, said, “Strategic changes in people management are increasingly evident, driven by Thailand’s technological progress and organizational transformation over recent years. As organizational strategies evolve rapidly alongside innovative HR practices, data has become crucial for organizations to remain competitive in the talent market. By effectively responding to shifting expectations, organizations can successfully attract and retain top talent in today’s increasingly complex environment.”
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Source: Mercer