According to Deloitte Thailand’s latest survey on compensation and HR trends, the slowdown reflects persistent cost pressures and the economy, which has not fully recovered. As a consequence, companies have taken a more cautious approach to budgeting, reports the Bangkok Post.
The survey, conducted in October across 176 leading organisations, shows uneven wage growth among industries. Energy and utilities maintain the highest projected adjustment of 5%, while retail and technology are expected at only 4%, the lowest rate among all sectors.
Deloitte said companies are navigating a dual challenge of a slow economic recovery and accelerated digital transformation driven by artificial intelligence (AI).
“The rapid integration of AI is reshaping compensation philosophies, shifting from traditional job-based pay to skill-based rewards,” the findings revealed.
AI and technology competencies rank as the most critical capabilities within HR planning, increasingly determining salary structures and workforce strategies.
Ariya Phukfon, Thailand technology and transformation leader at Deloitte, said organisations cannot delay investment in AI-related skills despite rising operating costs.
“Rather than replacing workers, AI is redefining the value of skills. Companies able to combine technology adoption with employee development will gain an edge in efficiency and talent retention,” he said.
BONUSES AND DEPARTURES
Bonus payments remained stable in 2025 at roughly two months’ salary. Sectors offering the highest projected bonuses include chemicals, energy, and oil and gas ‒ at around three months.
Retail and technology offered the lowest bonuses at 1.5 months, while 28% of companies continue to provide a fixed one-month bonus.
The voluntary resignation rate averages 12.9%, with retail experiencing the highest turnover at 32.9%, followed by real estate at 16.9% and consumer goods at 15.1%. The lowest turnover is seen in energy, oil and gas (3.9%), automotive (4.9%) and industrial sectors (5.3%).
Despite economic headwinds, most companies maintain operational stability, with 52% meeting performance targets and 44% reporting moderate growth. However, 35% fell short of expectations, reflecting an environment of cautious management.
Amid the slowdown, 57% of organisations have reduced or plan to reduce their compensation and benefits budgets. Yet companies continue to selectively invest in critical roles.
More than 55% pay above-market rates for high-impact positions, while keeping pay for general roles below market levels.
"This reflects a shift towards strategic prioritisation rather than across-the-board spending," Mr Ariya said.
Retention remains a focus, with 61% of organisations relying on career development opportunities as their primary retention tool. For high-potential employees, 65% supplement development with accelerated promotions to maintain motivation and reduce turnover.
As Thailand moves through a prolonged period of economic moderation, organisations are being urged to strengthen transparency in communicating wage and compensation decisions, while accelerating AI adoption to enhance workforce efficiency and competitiveness, Deloitte noted.
"Companies able to balance investment in people with technological transformation will be better positioned to secure long-term growth," said the consultancy.