Despite inflation, Thailand’s wages are expected to rise 2.2 percent next year, the eighth highest in the world. According to a new survey, only 37 percent of countries globally expect to see real-term wage hikes for the second year running in 2023, owing to soaring inflation.
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ECA International believes that the worst-hit region will be Europe, where real wages – nominal wage growth minus inflation – will fall an average of 1.5 percent. The biggest hit UK employees have suffered since the survey began in 2000 occurred this year, with a nominal pay increase of 3.5 percent, but a real pay decrease of 5.6 percent. In 2023, they will tumble another 4 percent due to 9.1 percent inflation.
The US is expected to see a real-term salary rise of 1 percent next year after a 4.5 percent drop in real-terms this year. Eight of the top ten countries forecast to see real salaries increase are Asian nations, led by India at 4.6 percent, Vietnam at 4.0 percent, and China at 3.8 percent. Top five countries include Brazil with a 3.4 percent increase and Saudi Arabia with a 2.3 percent increase.
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“Our survey indicates another tough year for workers globally in 2023,” said Lee Quane, Regional Director for Asia at ECA International. According to ECA, around a third of the countries surveyed will see real-term salary increases in 2022, which is better than the 22 percent that experienced increases this year. Average salaries will fall 3.8 percent in 2022. Over 360 multinational companies in 68 countries and cities are surveyed in ECA’s Salary Trends Survey.