Minimum Wage in Thailand.

[Admin]

No decision on new Thai minimum wage 
Bangkok Post: 22 Dec 2009
No decision yet on minimum wages

The Central Wage Committee on Monday failed again to reach agreement on a new minimum wage for labourers in various provinces due to a conflict over the wage for Bangkok, a Labour Department source said.

The committee, chaired by Chanthawan Thongsomboon, spent more than four hours discussing the mininum wage for Bangkok and adjacent provinces but could not agree on it.

The committee agreed to hold the next meeting on Dec 24.

A technical subcommittee had proposed that the minimum wage for Bangkok and five adjacent provinces go up by 2 baht per day except Samut Prakan which it said should get a 4-baht increase. However, employee representatives in the committee said all of the six provinces should get the same increase of 4 baht.

The minimum wage for Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, and Samut Sakhon is currently 203 baht per day, the highest in the country. The lowest wage of 150 baht per day applies in Phayao, Phichit, Phrae and Si Sa Ket provinces.

www.bangkokpost.com/breakingnews/163267/no-decision-yet-on-minimum-wages

[Admin]

21% minimum Thai wage raise debated 
Bangkok Post: 4 Oct 2010
EMPLOYMENT
21% raise in minimum wage debated

Business leaders today will discuss a radical government proposal to increase the daily minimum wage to 250 baht - 21% higher than the current Bangkok rate of 206 baht.

Prime Minister Abhisit Vejjajiva first floated the idea of a 250-baht minimum wage in June. In an address to Board of Trade members, he urged business leaders to think "out of the box" about ways to improve income distribution to promote social reconciliation.

His proposal will be debated today by the Joint Standing Committee on Commerce, Industry and Banking, which includes representatives from the Federation of Thai Industries (FTI), the Thai Chamber of Commerce and the Thai Bankers' Association. Members hope to come up with a clear response to the government.

"This is because the government's statement has caused confusion among business operators and might cause tremendous increases in their costs," said FTI chairman Payungsak Chartsutthipol.

He said the FTI agreed that wages should increase but that the decision should rest with the tripartite Central Wage Committee, a group of government, employer and labour representatives that reviews rates every December. "Increasing the minimum wage immediately to 250 baht per day is too high, and doing so might cause some provinces to increase wages by up to 100 baht, which will be a burden for business operators such as in Nan province, where the rate is 152 baht per day," said Mr Payungsak.

Currently, the minimum wage exceeds 200 baht in Bangkok and Samut Prakan (206 baht), Nakhon Pathom, Nonthaburi, Pathum Thani and Samut Sakhon (205), and Phuket (204). Elsewhere the rates range from 151 baht (Phayao, Phichit, Phrae and Mae Hong Son) to 184 baht (Chon Buri and Saraburi).

Mr Payungsak said any sudden large increase would have a big impact on small and medium-sized enterprises, many of which use a lot of unskilled workers, unlike big businesses that use mostly skilled workers and usually pay more than the minimum wage.

The agricultural and service sectors would also be widely affected as they use many unskilled labourers, he added.

He said he was willing to accept changes since they would help improve the quality of life for workers, but in the long term, operators would like to see incomes more closely linked with skills.

The private sector, along with the Education and Labour ministries, has been working on a plan to specify wages for each skill level, which would be an incentive for workers to enhance their skills to meet the standards.

"The move will also create an opportunity for workers to advance in their jobs rather than waiting for the government to increase minimum wages," added Mr Payungsak.

http://www.bangkokpost.com/business/economics/199531/21-raise-in-minimum-wage-debated

[urleft]

What is the current minimum wage in Buriram?   I would infer it's about 152 baht based on this article. 

[nookiebear]

What is the current minimum wage in Buriram?   I would infer it's about 152 baht based on this article.

A Thai lad who lives nearby works for the local council on a roadworking gang & gets 160 baht per day!!!,,,A large bottle of Low Kow & a packet of cigs & its almost gone......

[Admin]

Thai govt must stay out of wage debate 
Bangkok Post: 5 Oct 2010
'Stay out of wage debate'
Central committee best group to decide

The government should stay out of the minimum-wage debate and let the tripartite Central Wage Committee do its job, business leaders said yesterday.

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) issued the declaration following a meeting to discuss Prime Minister Abhisit Vejjajiva's proposal to lift the minimum wage to 250 a day, 21% higher than the 206 baht now paid in Bangkok.

The JSCCIB groups representatives of the Thai Bankers Association, the Thai Chamber of Commerce and the Federation of Thai Industries (FTI).

FTI secretary-general Sommat Khunset said the Central Wage Committee, which contains government, employer and the labour representatives from each province, considered various factors such as economic growth, inflation and the ability of employers to pay, adding that each region of the country had different conditions.

The committee reviews wages every December.

"Therefore, the bottom line is that the government shouldn't interfere and should not make suggestions that could imply taking the lead," said Mr Sommat.

If the minimum wage increased to 250 baht, he added, some small businesses would "drop dead instantly," while some large-scale businesses would survive with difficulty.

The minimum wage exceeds 200 baht in Bangkok and six other provinces, and is 151 to 184 baht elsewhere.

FTI vice-chairman Chen Namchaisiri declined to comment, saying that making assumptions would be seen as putting pressure on the wage committee.

"There will be no opinions until the committee reveals some numbers since it has the information. Prior to that, we shouldn't speculate," he said.

A business executive who declined to be named said that Mr Abhisit's proposal was politically motivated.

"Everyone knows that it's a matter of winning popular votes and that politics is interfering with the committee," said the executive.

The premier first raised the idea in June, saying that improved income distribution would help promote national reconciliation following the tense and violent political protests of April and May. He repeated his proposal on Sunday during his weekly television address.

In a related development, the JSCCIB also expressed concern that the strengthening of the baht would weaken the competitiveness of exporters.

"I don't think there's anything we could [ask from the government] at this point," said Dusit Nontanakorn, chairman of the Thai Chamber of Commerce. "Many [businesses] are already dead, and I think it's our karma [that we are born as Thais]. We want agencies to at least help and not say anything that would discourage us.

"It would be acceptable if [businesses die] because we aren't skilled enough. But if we die because we don't get any help, then that's another issue," he said.

http://www.bangkokpost.com/business/economics/199703/stay-out-of-wage-debate

[lahansai]

like someone is really going to pay this minimum wage rates. most are not registered anyway.

[Admin]

Economist calls for urgent reduction in income inequity

Empowering poorer people through fair income redistribution and an efficient social welfare system is the only feasible way for Thailand to ensure political stability and reduce social conflicts, a noted economist said yesterday.

Somkiat Tangkitvanich, vice president of the state think-tank Thailand Development Research Institute (TDRI), said the country's increasingly high degree of social inequity over the past two decades has resulted in the severe political conflicts witnessed over the past few years.

"Thailand has never seen democracy take hold for a long period. Thai society has a high degree of inequity and the major cause is poverty," Somkiat said. "Rich people evade taxes and most of the taxes collected come from salaried people. There is inequality in social and economic opportunities.

"The government makes the situation worse by allowing some groups of people, especially the rich, to benefit from the unfair policies. … Inequity in the areas of economy, society and education has adverse impacts on the country's democratic development in the long run," he added.

Somkiat was giving an address on "Economic Inequality and Democracy" as part of events held to mark the 37th anniversary of the October uprising of 1973 at the October 14 Memorial.

He said that without fair income distribution, an uprising similar to the one in 1973 could happen again and would lead to large-scale social changes as it did following that event.

"If we have no income distribution, our only option is to be undemocratic. If we want to remain a democracy, there will always be pressure for income distribution. In any democracy, people who decide the future of society and the country's policies are in the middle while poorer people want to get fair income distribution," he said.

He said one part of society, particularly the elite, do not want income distribution because they will stand to lose. And they opt for suppressing the lower classes to prevent democracy from taking roots. This happened in South Africa during the apartheid period and in Thailand during the lynching of university students in October 1976.

Somkiat said income distribution could be done in two ways - with populist policies or without such policies while focusing on empowering people in the long term.

However, he warned that the option with populist policies brought allegations of corruption against politicians in power, which in 2006 led to the coup that toppled the government of Thaksin Shinawatra. He said repeated coups also occurred in Latin American countries where populist policies were adopted.

"The remaining choice is to return to a basic welfare system. If Thailand opts for this option. I think all of us should help to ensure this system can be established. A welfare system and income distribution is the only remaining option to help stabilise politics and reduce social conflicts. It is the choice with the lowest cost for the ruling class," Somkiat said.

He also suggested a 10-point guideline for efforts to make Thailand a welfare society in order to reduce social and economic inequality and bring about sustainable democracy.

Among the proposals, he said, there should be fairer conditions for tax-deductible costs; the tax base should be expanded to people capable of paying taxes; government spending should be kept at a reasonable level; corruption should be reduced; and political rules must be amended to encourage participation of people with lower income.

[nookiebear]

like someone is really going to pay this minimum wage rates. most are not registered anyway.

What is the salary threshold where Thais would start to pay income tax??

[Admin]

Wage hike to slow GDP
11-baht raise shaves 0.2% off growth
Published: 27/11/2010 at 12:00 AM
Bangkok Post: Newspaper section: Business

The government's decision to lift the minimum wage will affect economic growth by 0.2% on average, says the Finance Ministry, while this year's growth will decline slightly to between 7.3% and 7.4% due to the recent floods.

Pisit Puapan, director of the Macroeconomic Analysis Division in the ministry's Fiscal Policy Office (FPO), said a wage increase from an average of 200 baht to 210 baht a day would have an impact, as wages are a significant investment cost.

Prime Minister Abhisit Vejjajiva said in Bangkok yesterday that effective from Jan 1, the government would raise the minimum wage by 11-12 baht, depending on each province's cost of living.

Mr Abhisit had previously proposed a flat rate of 250 baht nationwide. However, the tripartite Central Wage Committee comprising the government, employers and labour representatives disagreed and countered with an average increase of 10 baht.

The committee said a 250-baht flat rate, representing a 21% increase from the top wage in Bangkok, currently 206 baht, would hurt overall economic growth too severely.

The minimum wage currently exceeds 200 baht only in Bangkok and six other highly developed provinces, and is 151 to 184 baht elsewhere.

Economists had called the premier's idea too aggressive and inappropriate. They said a too rapid rise in wages would place more pressure on employers' costs with no corresponding improvement in worker productivity.

Mr Pisit said the FPO would make its final review of the overall economy next month. The most recent one projected 7.5% growth in GDP.

Thailand registered growth of 6.7% in the third quarter, with estimates of a rise of 2-3% in the fourth, he said.

Mr Pisit said that projection was based on the baht remaining at 29 to the US dollar. If so, it could shave 0.2% off GDP growth. Staying at 29.50 baht would affect GDP growth by only 0.1%.

"Right now it's standing at about 30 to the dollar, and that should not affect the overall economy," he said.

Despite the severity of damage from the recent flooding, pressure on growth will be slight, dropping the projection to 7.3-7.4% from an earlier figure of 7.5%. That is also lower than the recent 7.9% figure from the National Economic and Social Development Board.

Mr Pisit said that even though many items in the October economic index declined, the economy remains strong.

Last month, revenue from value-added tax slid in line with reduced growth of 4.5% in domestic consumption, from a 7.1% rise in September.

Automobile sales expanded by 42.7%, down from 46.6% growth in September, while motorcycle sales growth fell to 14.4% from 15.7%.

[Admin]

Thai minimum wage to increase 6.7% 
Bangkok Post: 10 Dec 2010
Workers set to enjoy 6.7% wage boost

The National Wage Committee has agreed to raise the daily minimum wage around the country by between 8 and 17 baht.

The raise, which amounts to an increase of 6.7% on average, is considered a big jump.

The increase takes the average minimum wage to 176.3 baht a day, said Somkiat Chayasriwong, the permanent secretary for labour and chairman of the wage committee.

Mr Somkiat attributed the raise to the government's policy to reduce disparity in society.

The Social Security Office says about 2 million Thai workers and 2 million migrant workers will benefit from the increase.

The raise for Thai workers adds more than 6.92 billion baht to the national payroll, while the increase for migrant workers adds up to more than 7.78 billion baht.

The increase will boost the purchasing power of the 4 million workers by 14.69 billion baht.

The increase of 17 baht in the minimum wage in Phuket, from 204 baht to 221 baht, is the highest in the country.

The minimum wages in Bangkok and nearby provinces were put on an equal footing of 215 baht a day.

The minimum wage in Bangkok and Samut Prakan was raised by nine baht from 206 baht. In Nakhon Pathom, Pathum Thani, Samut Sakhon and Nonthaburi, it was increased by 10 baht from 205 baht.

Workers in Nakhon Si Thammarat and Songkhla received the second-highest raise of 15 baht.

Workers in seven provinces - Phayao, Si Sa Ket, Amnat Charoen, Nakhon Sawan, Phetchabun, Uthai Thani and Prachuap Khiri Khan - received the lowest raise of eight baht.

The minimum wage in Phayao, at 159 baht a day, remains the lowest in the country.

Prime Minister Abhisit Vejjajiva earlier suggested that the minimum wage be raised to a flat rate of 250 baht across the country.

Mr Somkiat said it would take time to raise the figure to 250 baht nationwide as any increase must be made gradually. It would affect employers' ability to pay wages and workers could suffer if it was done at once.

Pannaphong It-atthanan, an employer representative on the wage committee, said the government should offer direct subsidies to low-income workers instead of pushing for minimum wage raises.

He suggested the government control the rise in commodity prices that often follows the minimum wage increase, otherwise workers would not benefit from their pay raises.

Employees' Labour Development Council of Thailand chairman Manas Kosol said he was quite satisfied by the wage committee's decision.

However, he still wanted the committee to review the raise for provinces where the pay increase was less than 10 baht.

Workers' living conditions in those provinces are still below general living standards, he said

http://www.bangkokpost.com/news/local/210573/workers-set-to-enjoy-6-7-wage-boost

[Admin]

JUMP IN SALARY

14% rise for lawmakers draws flak
By Piyanart Srivalo,
Naya Jittanon,
Budsarakham Sinlapalavan
The Nation 2010-12-15

The Cabinet decision yesterday to increase salaries for lawmakers by about 14 per cent has attracted widespread criticism.

Social-media enthusiasts and online critics aired their views and left messages against the unpopular move. Many said the performance of most MPs did not warrant a salary hike. They also pointed to the frequent collapse of House meetings due to the lack of a quorum.

The National Salary Committee's proposal for increases of salaries for the Speakers and Deputy Speakers of the Senate and the House of Representatives, the leader of the opposition, MPs, senators and bureaucrats got the green light from the Cabinet at its weekly meeting, said Deputy Government Spokesman Watchara Kannikar.

The pay rise for senators, bureaucrats and members of the administrative branch - including the prime minister - will be effective from April 1, while that for MPs will come into effect after the next general election, he said.

The salary panel's report submitted to the Cabinet explained that the lawmakers should get a pay rise of about 14 per cent because they had not had a salary increase since February 2005, although members of the administrative branch had benefited from rises in 2005 and 2007. The latter will get a pay rise of only 5 per cent.

With the upcoming increase, the Parliament president, who is chief of the legislative branch, will get a monthly salary of Bt125,590, which is the same as that of the prime minister.

Members of the Cabinet debated the matter for more than half an hour, with most of them expressing support for the proposal, according to a Government House source.

Some ministers, however, proposed that because of strong social opposition, the salary increase should benefit the Parliament president only and that there should be no hike for MPs. This idea was opposed by Deputy Prime Minister Suthep Thaugsuban, who cited the fact that there had been no pay rises for MPs since 2005.

Finance Minister Korn Chatikavanij proposed that the pay rise for MPs become effective for the new group of lawmakers taking office after next year's general election.

Senator Rosana Tositrakul from Bangkok expressed her disagreement with the pay increase for lawmakers. She also offered not to accept the extra amount in her salary.

"Private companies often base salary increases on their performance. This Parliament caused a political crisis that led to burning of the capital city. Do these people deserve the award? I want to see my salary increased like other people do, but the public interest must come first," she said.

Financial burden

Senator Ruangkrai Leekitwattana, who has often campaigned against abuse of power, also said he disagreed with parliamentarians getting a pay rise. However, he did not make it clear whether he would decline the increase.

The Cabinet yesterday again put the brakes on a plan proposed by Interior Minister Chaovarat Chanweerakul to increase salaries for members of tambon administrative organisations around the country, said deputy government spokesman Supachai Jaisamut. The pay rise was expected to put a financial burden on the local administrations' budgets.

The matter is likely to be resubmitted to the Cabinet after the Interior Ministry has consulted the Finance Ministry and the Budget Bureau.

Also yesterday, the Cabinet endorsed the Minimum Wage Committee's decision to increase the daily minimum wage by between Bt8 and Bt17 for low-skilled workers all over the country, with effect from New Year's Day, Watchara said.

Prime Minister Abhisit Vejjajiva rejected a light-hearted question suggesting that he was being viewed as Santa Claus giving presents to all groups of people.
"I don't think so. My shape doesn't permit that," he joked, adding that the increase in the minimum wage took place every year.

[Prakhonchai Nick]

The government is now considering to increase the daily minimum wage of workers to have it in line with rising cost of living and the process will complete in one month, the prime minister said.

Why does it take one month and no doubt dozens of committees and hundreds of people to add 2/3bt to the minimum wage?  TIT!

[Admin]

Wage hike worries investors
By Wichit Chaitrong
The Nation 2011-06-16

In seminar hosted by Asean TV , foreigners set agenda for the next govt while economic leaders claim they have clear plans to deal with major issues

Foreign investors are worried about the proposed increase in wages, the rising cost of electricity, widespread corruption and low education standards, and want the new government to start liberalising the service sectors.

Investors, both local and foreign, raised these issues at yesterday's "July 3 Election: Foreign Trade, Investment and Tourism" seminar hosted by The Nation and Asean-TV. Thanong Khantong, editor of Asean TV, moderated the forum.

An investor from India said electricity and labour cost a lot less in Indonesia, and expressed concerns about political parties promising an increase in minimum wages. Instead, he said, the government could help by reducing income tax.

Nandor G von der Luehe, chairman of the Joint Foreign Chambers of Commerce in Thailand, called on the government to liberalise service sectors and remove restrictions in the Foreign Business Act.

Finance Minister Korn Chatikavanij, meanwhile, said electricity in Thailand was cheaper compared to neighbouring countries with the exception of Indonesia, which has an abundance of fuel resources. However, he said a nuclear power plant was out of the question because there was far too much opposition and everybody was afraid of a nuclear crisis like the one Japan is suffering.

He added that Thailand had the advantage of being well placed geographically to become a logistics hub in the region, which would lower the cost for manufacturing sectors.

The Democrat Party also plans to further develop the Laem Chabang port in the East and link it to Burma's Dawei (Tavoy) port. "We have to look beyond what is available within our own borders," he said, as he ruled out the question of building new ports in the South, because it is a tourism hub.

Korn said if the Democrat Party wins it would introduce reforms in the tax system, like increasing property tax, which would allow cuts in other taxes. Korn also implied that value-added tax might also be increased because the current 7 per cent was very low. In addition, companies that are willing to increase minimum wage would be given tax rebates, he said, in reference to his party's election pledges to increase minimum wage by 25 per cent in two years "We're looking at a comprehensive tax package, not a specific one," he reiterated.

Korn added that if the next government ended up being led by the Democrat Party, then the Commerce Ministry would take care of the restrictions in the Foreign Business Act.

Olarn Chaipravat, chief economic strategist of Pheu Thai Party, meanwhile, has promised that his party would improve the education system in the next six years. The party plans to spend about Bt4 billion on providing Tablet PCs to about a million schoolchildren nationwide, and also aims to encourage parents to oversee their children's studies. These moves are aimed at solving the issue of the lack of skills in both foreign languages and mathematics among young children.

Olarn added that each university would be given Bt1 million as funding for training courses in order to help increase productivity, which should offset the high cost of labour as the party plans to raise the minimum daily wage to Bt300.

In addition, he said, corporate income tax would be cut to 23 per cent this year and 20 per cent in two years. "It's well thought out and quantified," he said, as he tried to allay the fear of rising wages.

Kasemsant Virakul, a senior member of Chart Thai Pattana's economic team, promised to allocate a bigger part of the budget to the National Anti-Corruption Commis-sion to fight corruption, as well as invest Bt1 trillion in mega-infrastructure projects.

Goanpot Asvinvichit, chief of Chart Pattana Puea Pandin Party's economic team, promised to work closely with the private sector to help increase productivity and earnings.

[isanbirder]

'Daily wage' only applies to people working for limited companies, or similar organisations which have audited accounts etc.  It does not apply to daily labourers in the villages.

[Vombatus]

'Daily wage' only applies to people working for limited companies, or similar organisations which have audited accounts etc.  It does not apply to daily labourers in the villages.

Or local restaurant workers.