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Home » Reader question » Reader question: How high is an average Thai monthly salary?
Reader question: How high is an average Thai monthly salary?
Dear readers,
When I'm in Thailand I see a lot of 4×4 cars. Everyone seems to have a motorbike. This gives me the question:
How much does an average Thai actually earn per month? What is a normal Thai monthly salary?
Regards,
MikeT
That's here:
https://tradingeconomics.com/thailand/wages
Income per person. In 2001 it was 6.500 baht per month, now in 2018 it is almost 14.000 baht, a doubling. In those 17 years, the average income per person has continued to rise with an acceleration after 2012 when Yingluck raised the minimum wage from 200 to 300 baht per month.
The average monthly income per household is 25.000 baht.
Of course there are considerable differences per region.
An average vehicle will cost around 10.000 baht per month. An average household can reasonably afford that
I agree with your income.
Not with your statement that an average household can afford it.
a basic 4×4 costs around 1.000.000 bath / 120 Months = 8.333.33 bath per month and then you pay it off. But the average interest here is a bit higher than in NL and will be somewhere around 8 to 10%, so somewhere between 8 and 9000 bath per month. so rounded off, that beautiful 4 × 4 alone costs 16.000 per month and then you have not driven a meter yet, add some fuel, insurance, maintenance and you already arrive at 20.000 per month.
Many car purchases are not or hardly paid off, people only want that car for show. In a few months or a year you will see where the ship strands, or where the money comes from.
The misery often only starts when there are expensive expenses or maintenance.
You probably mean minimum wage of 200 to 300 baht per day
Mistake, minimum income from 200 to 300 baht per DAY
Then something about the distribution of that average income over 5 percentiles of 20 percent each, from highest to lowest incomes, with the percentage they receive of the total income of all groups and the average income of that group. In brackets how much that has decreased or increased in the past 30 years.
1 45% on average 33.000 baht (-6.2%) (20%of highest income earners get 45% of the total)
2 22% 16.500 (+2.3%)
3 15% 9.000 (+1.6%)
4 10% 7.500 (+1.8%)
5 8% 5.200 (?)
So we see that the lower incomes have improved somewhat over the last 30 years. (That does not apply to the wealth, the rich improved there).
As for the purchase of cars. Not everyone buys a 4×4, many buy a second-hand car and a down payment is often required. I think that the average of 10.000 baht per month for the purchase of a car is still too high.
Can the moderator allow me to make a comparison between the Netherlands and Thailand in terms of income distribution? The percentage indicates how much that group of 20% of the total income receives, see above 1 to 5
1 Th 45% Ned 38% (20% highest incomes)
2 Th 22% Ned 22%
3 Th 15% Ned 17%
4 Th 10% Ned 13.7%
5 Th 8% Ned 10% (20% lowest incomes)
Clear differences: incomes in the Netherlands are more fairly distributed. But the difference is less than I always thought.
I think that gives a clearer picture.
https://www.statista.com/statistics/716001/share-of-household-income-levels-in-thailand-forecast/
and see: almost 2/3 of the Thai population has a maximum income of 2015 baht per year in 350.000 = 30.000 baht per month = 750 Euro. That percentage is expected to drop to 2020% by 60.
Moderator: We will post your question as a reader question.
@Tino: In addition to the income known to the tax authorities, there is often also a considerable part that is not reported, especially in the tourist industry.
A little 4×4 also costs quite more than 10.000 baht or € 265 per month in Thailand.
Oh dear. Here we go again.
Taking a close look at Thai spending patterns.
4×4, motorbikes, phone calls, gold – to be rejected.
They have to save. Only the bare essentials are allowed!
Well, I'll wait.
What's the fun in Thailand when everyone's rich, Inquisitor? Do we foreigners also have to pay a lot more for anything and everything. And we can no longer blind the Thais with beautiful houses, cars, gold, young women, nice holidays and the like. Let the Thais stay poor! Sufficiency economy! Going into debt is a sin and must be forbidden!
Giles Ji Ungpakorn has written some sharp pieces about the sufficiency economy. The simple farmer and factory worker must know their place, be content with a meager income all their lives and, above all, do not want to think about a luxurious life with a car in front of the door and a smartphone… They have to accept their poverty according to this conservative neo-liberal worldview .
From me they can buy and wear kilos of gold. A good value-retaining investment, similar to a savings account.
That is why most Thai people are in debt, they (try to) pay everything off monthly and that generates a lot of money. I paid for my moped in cash, I didn't get many free products because they don't like that, it's better for the seller to get the amount in 36 months. He takes almost 30.000 more on a moped. It is a Buddhist country, but a lot revolves around what you show but may not be able to afford at all. How can a Jan Modaal in Thailand buy a new Apple phone, they all buy that on credit and later they see how they pay for it.
Here in a village in the Isaan, due to the poor price of rubber and rice, the income is barely enough to stay alive. Let alone pay 10.000 baht repayment for a car in the month! Poverty trumps here!
The question was how much is the average monthly salary pp. I don't know how reliable the statistics (see above) are, but an average monthly salary of TBH 14.000 seems high to me. A minimum wage of TBH 300 per day yields approx. TBH 6 if you work 8.500 days a week and TBH 7 per month if you work 9.300 days.
Cars, mopeds, etc. are in most cases on installment. And if 2 people already work in a family, then TBH 25.000 family income is calculated much too high. A car of TBH 10.000 means – even with a family income 40% of the monthly budget! If you add housing and electricity/water/gas to that, it becomes clear that it is hardly possible with such a high estimated family income.
That is why there are also many cars on the 2nd hand market.
This is the average wage, not the minimum wage. If you would calculate like that for the Netherlands, we couldn't afford cars either. If you work at a bank you can easily earn 20-25,000 baht a month, and the middle class is expanding rapidly in Thailand.
In rural areas, people usually have the advantage of owning the house and a piece of land, and they still often live with a large family and dependents. This means that the family as a whole has one (1) beautiful 4 x 4, and often a very old barrel for on the land. Same with the motorcycles.
Yes, it is about average, but anyone who has taken math in high school knows that it can be misleading. You also need to know the mode and median. In case of large outliers, the average wage is strongly influenced. For example, if 80% of the Thai would earn 10 to 15 thousand baht, but 5% have an income of one billion baht, the average would be well above 12,5 thousand baht.
For example, it was in the Dutch news this week (I heard it on the radio) that the Danish employee has the highest gross wage, the Dutchman is in 6th place and has to make do with an average income of 35 euros per hour. 35! I don't think anyone I know earns that much. The simple shop or office employee, the laborer, does not make it. But the high incomes are pulling things up. It is therefore fair to state which income group is most common “on average people earn X euros, most people earn between X and Y baht/euro per hour/month”.
Thailand is much more unequal than the Netherlands. Inequality in the country is high, both in terms of income and even more so in terms of wealth. There is clearly an oligarchy: a select group at the top has a lot of money, possessions and power. The 20% richest have 80-90% of all savings. The bottom 40% of the population has nothing or is in debt. The top 10% hold 61% of all country titles. The poorest 10% own 0,07%.
Sources:
https://www.businessinsider.nl/er-zijn-maar-5-europese-landen-waar-het-uurloon-hoger-is-dan-in-nederland/
https://www.thailandblog.nl/achtergrond/thailand-ontwricht-dood-thaise-stijl-democratie-slot/
Exactly Rob, the huge inequality in Thailand is mainly in the field of possessions.
Monthly income is a wrong indicator in Thailand. Even the very wealthiest give themselves an average salary. All major personal expenses are paid for by the company, so a high salary is not necessary. The highest incomes known to the tax authorities are earned by foreign expats.
Interestingly, by far the highest average income is earned in Rayong province. More than 1 million baht per year.
Bangkok, Phuket are far below that with an average of about 500k per year.
You shouldn't be talking about the average income when you talk about luxury 4×4 cars.
What is relevant is the fact that there is a lot of wealth in Thailand.
What are the income ratios like. Rich vs poor and the middle income group.
after 2012 when Yingluck raised the minimum wage from 200 to 300 baht per month…. This means per day.
I wonder how that average of 14.000 was calculated. These are salaries for well-educated people such as nurses.
The minimum wage is for 6 days work a 300 Baht per day 1800 Baht, is 7800 per month. An average household in Isaan cannot afford a car if there is a breadwinner. Certainly not the maintenance, insurance and tax.
Niece buys a car with her husband he works at a large photo shop 9000 Baht per month she works for a Fashion concern as a manager 12000 per month have a 2 year old baby. and bought a suzuki 4 door borrowed the down payment and the rest 8900 Baht per month. Have no money left every month but too short, can barely meet their obligations, the car does not run on water, it must also be filled every week, then no more insurance and forget about maintenance. But it washes nicely
Often the 4×4 car is also not a benchmark to think that the Thais will earn well.
Certainly every car must be paid for, although unlike in Europe, this often does not have to be paid for by 1 person.
These cars are often paid for by several people in the family, and are often used by several people.
In very many families on the land, monthly incomes of at most 10 to 12.000 Baht per person and month come in, so that the purchase of a car, usually with credit, has to be paid for by several people.
The same often happens when building a house, for example, where even the children who live and work elsewhere contribute.
That is why many Thais also have a much closer family bond compared to how we know this from Europe.
Without this close family bond, with the often low wages and the lack of social services, many things were not possible.
My Thai wife has an income of approximately 130.000 THB per month at an American firm in Rayong. Many of her acquaintances, all graduates, are on the same level. Compared to the wages of the average worker, income disparities in Thailand are still very large.
When purchasing, an amount will first have to be paid if this is financed.
Will be between 50.000 and 100.000 baht
The car salesmen have tables of what must be paid.
Amounts per month depend on the term.
However, everything is excl. repair.
Usually, the first year of insurance is “free” upon purchase.
Most cars are financed.
How the costs can be paid is only discussed afterwards.
You also see that many relatively new cars are recalled.
These are then sold through eg Auction.
The already paid is also gone.
Salaries of eg 20.000 baht with car costs, fuel and other costs is not a lot of money.
However, do not forget that a car is a status.
Acquaintance without a driver's license wants a car at all costs.
So buy a car. Parked in front of the 7/11. The car is occasionally driven by a friend of hers.
Why a car? Answer I want a car.
While from the 7/11 to her condor is less than 400 meters.
Does she take driving lessons? No. She is afraid of traffic.
But everyone can see that she has a car. And pontifically occupy a place in front of the door of the 7/11.
And now pay 9800 baht every month.
Just tell Tino that the prices have also risen considerably, I do not yet have what, n, Thai pays in interest on his car
That could well be the case, the interest. Ford recently had another promotion, 5 years credit, 0% interest. They seem to want to sell too.
That is indeed correct, normally at the car dealer also a financier of the same company, eg Toyota, I think the highest interest is 3 percent.
Dear,
I think it's all very nice to write something down based on statistics.
These speak about the average salaries all walks of life mixed up.
I am talking about the average working class here.
The daily wage is 300 bath/day.
If we look at this for, for example, a couple, lady cleaning lady and husband help in the kitchen, and they each take 1 day off a week.
Is this 26 days x 300 bath x 2 pers = 15.800 bath/month.
Yes and a big wagon all very nice.
But I know from personal source paying 8000 baht/month for 8 to 10 years is no exception.
So don't be blinded by that because you shouldn't forget a big pickup greatly increases the status symbol of a Thai, as well as gold and real estate.
Quite right George, nurses and other well-educated people. Haven't you been that lucky? Then you're out of luck. And the salary is considerably less and 6 days a week And some even more. Many cars and motorbikes are bought on credit. And many are not or very badly insured. And there are even those who walk around hungry.
Maybe we should first distance ourselves from those 300 Baht a day. For that money, only young people at 7/11 and Burmese immigrants are going on. And maybe some slobs in Isan.
From 300 Baht you cannot possibly house and feed a family. And certainly not paying off an expensive object.
You can bet that every Thai who has learned something earns a multiple of that paltry three hundred Baht. Nothing else than in the Netherlands, by the way. How many people work there for minimum wage?
In my opinion you are a little too optimistic regarding the number of 300 baht earners. Firstly, you must already have a job to earn something anyway (and many do not have a job, certainly not a permanent job with a fixed income), and secondly, it is also a matter of supply and demand. I know here - the province of Chiang Rai - people who work long days in the hospitality industry for 250 baht a day. Take it or leave it, says the boss - in Thai of course. Not legally, no, but what do you do if you have no other way to earn some money?
I don't know what you base this on, but 300 Baht is the norm, there are even companies that hire you for 250 per day, that is possible, the supply of workers is large, and if you have nothing and still want money, you take 250 per day . And often a guarantee of about 5000 Baht must be paid first, which is collected by the family or borrowed elsewhere. We are an employer, no one works for us for 300 Baht, but we hear and see what is going on.
Apparently Rob has to read an earlier post from Tino. It states that 33% of the working population earns less than 9000 bht per month; more than 12 million workers. And in addition, you have a group of elderly people over 60 who are no longer part of the working population; in 2017, there were 8 million Thais over the age of 60. And 22% percent, about 8 million of the working Thai population earn an average of 16.500 per month. If I then add these numbers, I already have 28 million adults with a low income, and then there are children to support.
Larie, robhh think you should drive a scooter through isaan more, then you would ……………
but yes love is blind, money is ………………………. fill it in yourself.
I only know one thing, that there are many poor people here, so pulling up in such a Thai way that they are well-endowed is irrelevant.
The question is what a Thai earns on average and/or what a normal monthly salary is. That is not the same in both the Netherlands and Thailand. Earning probably means anyone who earns money in one way or another, whether as an employee or as a large or small self-employed person or retiree. By average salary is probably meant the average of the salaries that Thais earn in paid employment, either in the (large and small) business or at some government agency.
In addition, the questioner makes a connection between possessions (such as a car and a motorbike) and the average income. However, these goods are paid for from the (average) disposable income (perhaps not individually, as in the Netherlands, but more family-related) and not from the total average income.
A few comments that indicate that you have to be careful when comparing (disposable) incomes of Thais with that of Dutch or Belgians and certainly with averages:
– more than half of the Thais do not have a permanent job (with an employment contract) and therefore no fixed (monthly) salary;
– the free sector ranges from the poor self-employed farmer in Isaan to the Thai multimillionaire from the Forbes top50;
– the majority of Thais do not pay income tax because their annual income does not exceed 150.000 Baht (= 12.000 Baht or 300 Euro)
– there are large regional differences in incomes, minimum wage per day, but also cost of living. On average, more is earned in Bangkok where life is also more expensive than in the countryside. Foreign companies pay better than Thai companies;
– there are many more Thais in the countryside who hardly have housing costs (except for utilities and home maintenance) while the majority in the big cities do (rent or mortgage);
– the average income may have doubled in 17 years, but at least 40% (1,5% per year) of this has been lost as an increase in the cost of living. Net therefore remains 60% over 17 years = slightly more than 3% per year.
Dear Mike,
You see a lot of 4×4 cars driving. Can you also see who is driving the car through those dark windows? It is not always Thais who drive. And if a Thai driver drives the car, it can also be the car of a foreigner.
I live in a community (say village of foreigners) of 20 houses in Pattaya of which at least 10 households have a resident Thai who regularly drives the vehicle of the 'boss' to do groceries, etc.
I know from a number of Thai people what they earn. Here are some examples:
My wife's brother-in-law and his girlfriend work in a bar on Pattaya beach road. He plays guitar in a band and she sings along. They both receive 25.000 baht per month, so 50.000 baht together.
We pay a Thai woman who runs a market stall for us about 12.000 baht per month and she and her husband have a room with us that costs her nothing, her husband earns about 15.000 baht per month at KFC in the kitchen, together so about 27.000 baht and no housing costs and usually eat from us.
We have a Burmese housekeeper who we pay 10.000 baht per month for six days a week. She and her boyfriend (Burmese) also stay with us in a room for free and he earns about 9000 baht per month in cleaning. So together 19.000 baht.
The girlfriend of a cousin of my wife has a foreign boyfriend (money lender) and she receives a fixed amount of 2000 euros per month, so about 77.000 baht.
A cousin of my wife who works as a nurse in a hospital in Chumpon. She works some extra hours per month and also six days a week. She earns between 45.000 and 50.000 baht per month and is 28 years old. A 48-year-old woman who works in the kitchen of a renowned hotel in Pattaya earns 27.000 baht a month. In our market, the salaries of the market stall people vary considerably. There are those who earn 10.000 baht a month and sometimes even less, but also those who bring in between 100.000 and 150.000 baht per month. Certainly the fish, shrimp and squid stalls are doing well. They are hard workers so as long as it lasts, nothing lasts forever, because a lot depends on what the future brings.
This is Addeco Thailand Salary Guide 201
https://www.adecco.co.th/salary-guide
You will see that salaries of 100 baht and more are no exception. On top of this come the annual bonuses. who can easily reach 000 months salary and other extra legal benefits. A friend of my wife who has an executive position at a European car manufacturer has a monthly salary of 6 Baht per month. So not married. I have several Thai relatives who earn more than 250 Bht per month. A school friend of my wife drives a Mercedes 000 SEL. Not married, but has a girlfriend
That salary guide does not exactly cover the entire spectrum of jobs, but mainly the higher positions, which makes the picture rather skewed.
Then your circle of acquaintances only consists of high-ranking people.
These are real wages that the average Thai can only dream of.
I know a first saleswoman at Home Pro in Chiang Mai, who, including her sales bonus, does not exceed 15000 baht.
what will the novice sellers earn then?
Our employee could work as an office clerk for 12000 baht. She is definitely not stupid with computers, has also done 2 years of university.
What do you think nursing staff in state hospitals earn?
Used to be a well known in Bangkok. Worked as sales at Unilever. High position, company car, company telephone and including all premiums about 100.000 baht. This was a very experienced sales person, who received a lot of commission. but also worked about 60 hours a week
I like to hear it all, those high wages.
Dear Nicole, The wages you indicate here are really no exceptions for most Thais. Moreover, these are usually jobs that do not offer any security of income for the future.
Should they lose their job for any reason, in the absence of further social systems, they immediately fall back from something to nothing, or their family
If this were not a reality for a very large part of the population, many older farangs would never have come into contact with a much younger Thai woman.
What many farangs do not like to hear, because we prefer to hear that they have taken us for our beautiful eyes, was basically nothing more than seeking financial security.
The fact that later no real love or lasting gratitude can arise from such a relationship is of course never excluded.
Many tourists would also not be able to benefit from the often very cheap service offers if these low wage costs were not a reality.
The fact that the Thais can still make large purchases, without being able to fall back on an existing farang, is often due to the enormous cohesion in the Family structure.
Compared to this and taking into account the cost of living, salaries in the Netherlands are poor compared to…..
Dear Brabant man, In the Netherlands wages and social benefits are such that no much younger woman has to seek security from a much older man.
If this is the case, then, in contrast to Thailand, this is a very small minority.
It is striking in the salary guide that a Thai with Japanese nationality usually earns double that.
If I read Mike's question carefully, I get the strong suspicion that he is not so concerned about the correct level of the average Thai income.
All mathematical calculations and numbers about this income are therefore not very interesting at all, and in fact have nothing to do with the actual core of his question.
I suspect because he has heard many times that many Thais earn very little, that it is more of a curiosity from him, how all this is paid for.
That is why it is perhaps important to mention that the majority of Thais, who do not earn much more than the minimum wage, can only do this if the entire family makes their monthly financial contribution.
Unlike most families in Europe, a Thai family is often very dependent on each other due to low wages and a lack of social services.
With few exceptions, they are often real Clans, who, if necessary, also offer their help to the weakest in the family where they can.
In Europe, everyone takes care of themselves, and God and the social system take care of us all.