Auto industry leads the field in bonus payments
AUTO, ENERGY, and real estate companies continue to pay high bonuses in 2017, thanks to the country’s economic recovery, according to a survey by The Nation and employment firms.
Isuzu, which has a plant in Rayong province located in the Eastern Economic Corridor (EEC), announced 7.9 months bonus for staff this year plus Bt10,000, which was the highest among auto firms.
Hino plant in Rayong announced seven months bonus plus Bt18,000 while Honda plant at Rayong offered 6.9 months plus Bt25,000.
Meanwhile, on average the auto industry will receive a payout of 2.33 months guaranteed bonus and 2.14 months performance-based bonus for 2017, according to a survey by jobDB (Thailand) Co Ltd recently.
The auto sector is followed by the financial services industry at 1.96 months, electronics and electrical equipment at 1.26 months, food and beverage industry at 1.1 months and IT industry at 0.92 month. Last year the automotive industry paid a performance-based bonus of 4.74 months.
Meanwhile, Thai salaries are projected to rise 5.5 per cent in 2018, slightly higher than the average 5.2 per cent increase paid this year, with likely bonuses of between 1.8 and 5.5 months’ pay based on 2017 salaries, according to the third quarter Salary Budget Planning Report by advisory company Willis Towers Watson.
The survey was conducted globally in July. More than 4,000 sets of responses were received in Asia Pacific, with 132 Thai-based companies participating. When compared with other Asian markets, Thai salary increases rank around the middle of the group.
For pay rises in 2018, India (10 per cent), Sri Lanka (8.6 per cent) and Indonesia (8.5 per cent) will lead the way in the region, while Japan (2.3 per cent) will see the smallest increases.
In Thailand, salary increase were recorded across all sectors over three years (2016-2018), a majority of the sectors shared similar trends. Construction had the smallest rise at 4 per cent in 2017 and is projected to continue with the lowest rate of increase at 5 per cent in 2018.
Life insurance is showing a decreasing pattern in year-on-year figures; however, it is still forecast to meet the average increase at 5.5 per cent, Willis Towers Watson said.
The demand for labour in construction, and real estate will rising in 2018 when the government’s infrastructure investment starts and it will continue until 2022, Willis Towers Watson said.
Meanwhile, the information technology, and high technology industry will see lot of poaching with salary offers up to 50 per cent higher, as this industry faces staff shortage, the survey by Willis Towers Watson added.
