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Published on July 17, 2007

Thai executives have more real disposable income after tax than their counterparts in another 46 countries, according to a survey by Hay Group released yesterday.

The survey ranked Thai executives' disposable income at eighth - higher than those in the United States and Japan.

Thai executives' disposable income is US$147,547 (Bt4.91 million), against $104,905 in the US, $102,604 in Japan and $71,839 in bottom-ranking Indonesia.

Saudi Arabia topped the income list, followed by the United Arab Emirates, Hong Kong, Russia, Turkey, Mexico and Ukraine. Singapore was in ninth position.

The survey is based on relative purchasing power and takes into consideration cost of living and taxation levels. The World Pay Report compares detailed pay, bonus, tax and cost-of-living information at all levels of employment, from unskilled work to senior management, in order to reveal disposable incomes for department heads in 47 countries throughout Asia, North America, South America, Europe and Australia.

Regionally, Thailand was only outdone by Hong Kong, which came in third with buying power equal to $203,947.

The Hay Group says Thailand's ranking is consistent with its emerging-market status.

"The continued growth of emerging markets such as Thailand is creating unprecedented demand for senior management talent," said Anotai Adulbhan, general manager of the Hay Group Thailand. "The talent shortage, plus premiums paid to managers in Thailand, is simply inflating management pay."

However, Adulbhan cautioned that Thailand's executives should not rush to pat themselves on the back. "Compared with other countries, especially those in northern Europe, Thailand's executives have to put aside a much larger percentage of their disposable income for healthcare, retirement provision and children's education, much of which is paid for by the

government in Europe," he said.

The survey highlighted the fact that emerging economies offer the best executive packages. At the same time, affluent Western countries such as Finland, Denmark, Sweden, Norway, the UK and Canada all ranked 40th or below. The United States (24th), Australia (26th) and Japan (27th) were mid-table.

The study used Hay Group's globally consistent data from its PayNet system, which shows the true purchasing power of managerial pay. PayNet allows meaningful comparisons to be made in all 47 countries where the Hay Group operates.

The survey says that pay rates for management have traditionally been high in Hong Kong - sometimes more than a third higher than other Asian cities such as Singapore. Management buying power in Hong Kong is enhanced by low rates of income tax

According to Hern Yin Goh, reward information services manager for Hay Group in Shanghai, China's rapid economic development is also reflected in disposable incomes averaging $126,281, placing the country 14th in the world pay table.

Despite India's impressive economic development, managers in the country have buying power of just $92,750 which ranks India as 36th in the survey.

"India benefits from a large tier of well-educated, English-speaking local talent, making management pay more immune to the international market," said Hern.. "However, managers' pay is increasing between 15 and 20 per cent in India, so it is unlikely to stay near the bottom of the pay table for long."

Data in PayNet is based on Hay Group's global methodologies for measuring job importance and benefit values, which ensures that results are consistent around the globe. PayNet helps companies attract and retain senior management.

"Hay Group's aim is to let human resource directors of multinational organisations make quick and accurate comparisons wherever their senior executives are deployed," Anotai said.