Thailand Boosts National Minimum Wage for First Time Since 2013

[webfact]

Thailand Boosts National Minimum Wage for First Time Since 2013

By Suttinee Yuvejwattana and Natnicha Chuwiruch

 

-- Labor Ministry announces 5 baht to 22 baht per day increase

-- Kasikorn Securities expects a limited impact on inflation

 

Thailand raised its minimum wage nationwide for the first time in five years, as the country’s military government tries to tackle lingering income inequality.

 

The wage will climb from April by 5 baht (16 cents) to 22 baht per day, depending on location, Jarin Chakkaphark, permanent secretary for labor, said in a briefing late Wednesday in Bangkok. The revised daily range of 308 baht to 330 baht is about 2 percent to 7 percent higher than current levels.

 

"Wages have to rise with economic conditions -- the cost of living and economic growth in each province," Jarin said.

 

Full story: https://www.bloomberg.com/news/articles/2018-01-17/thailand-boosts-national-minimum-wage-for-first-time-since-2013

 

-- Bloomberg 2018-01-18

[selftaopath]

How can a Thai/ family live on these wages?  

[Dave67]

Might as well give them a box of matches as a pay rise. Pathetic  

[Samui Bodoh]

As the poster(s) above noted, it is a small increase and very difficult for a family to live on.

 

It would be nice to see it rise much further, but realistically I don't see that happening anytime soon.

 

However, before slamming it as not relevant, think of what it can buy. A 15 Baht a day increase translates into an additional 10-15 meals a month for a poor family; that is a good thing. That can mean the difference between a child being malnourished or not.

 

I'd love to see the wage rise much further, but every little bit helps.

 

 

Edited January 17, 2018 by Samui Bodoh
Lack of coffee

[George Bowman]

Before I found firm footing in life, I held numerous minimum wage jobs to get by. Every dollar counted and eventually life became more enjoyable. I didn't like some of the jobs but it was necessary to show up and work if I wanted to eat.

 

Here in Thailand, we often have general labor work that needs to be done. Trying to find someone to show up sober on a consistent basis to trim trees, mow grass, rake leaves, etc., can be difficult. For the last several years we have been paying B300 a day for these menial jobs. Mostly, it is the older married ladies that show up and work.

 

Many of the men in this rural area now want B400-450 per day for their labor. And apparently many of these young men are unable to work alone, as a friend or two is needed to help. They show up at 8:30 and then sit around until 9. They take an hour off for lunch and are ready to go home by 4. Between taking breaks and playing on their phones, not much work gets done.

 

I get blamed for this labor problem. My wife has always said that B300 was to much to begin with and that I don't understand Thais. I think she has a point...

 

 

Edited January 18, 2018 by missoura

[midas]

Thailand is already uncompetitive regarding wages compared to the neighbouring countries-Cambodia, Laos, Vietnam,  Myanmar and even Malaysia and where the young employees seem far more enthusiastic and show a much better attitude towards wanting to learn and improve themselves than in Thailand 

Edited January 18, 2018 by midas

[worgeordie]

The workers will be in a quandary,what to spend  the extra few THB on,

while employers will be squealing they cannot afford to pay  .

regards worgordie

[lapamita]

higeher increase of min wages are not possible, due to a lack of improvement in productivity.

the last heavy increase from 180 to 300, some years ago ... lead to a big upswing in prices, for propducts with high labour costs...ie. foods

 

Thailand mahor proplem  to increase salarys is

- productivity

- education

- competetiv ability

 

and another one is , the lack of competetiver, leading too heavy crossmargin in companys .... ie. makro, bigC  ....... look in te balancesheet its public. .. from those margins  european companys can dream off

[Skeptic7]

Thing that strikes me is...look at any of the Western restaurants here. The prices here are at least as much as in the west...usually more...yet the employees are here are paid approximately 80% less for the same crap. A 7-11 or Pizza Hut or Subway employee here is making about $10/day. In USA, more like $10/hour. Construction workers here paid peanuts for hard labor as opposed to The West. BTS, MRT and airport employees...same. Thailand has almost nothing for labor costs, which is one of the big reasons this economy (and currency) always doing so well. Next to nothing labor costs. 

Edited January 18, 2018 by Skeptic7

[whatsupdoc]

3 minutes ago, Skeptic7 said:

Thing that strikes me is...look at any of the Western restaurants here. The prices here are at least as much as in the west...usually more...yet the employees are here are paid approximately 80% less for the same crap. A 7-11 or Pizza Hut or Subway employee here is making about $10/day here. In USA, more like $10/hour. Construction workers here paid peanuts for hard labor as opposed to The West. BTS, MRT and airport employees...same. Thailand has almost nothing for labor costs, which is one of the big reasons this economy (and currency) always doing so well. Next to nothing labor costs. 

But the productivity of the workers is a lot lower in Thailand so for one worker needed in the USA you'll need several here. Plus Western food ingredients are more expensive here than in the USA (cheese is a good example).

[sanemax]

When the minimum wage went from 250-300 Baht , labour costs increased and then so did the cost of things , which then made that 300 Baht have the same spending power as the previous 250 Baht

[H508]

So, I know the cousin of my gf works from 8am to 5pm at a local grocery store for 260 baht a day. That is less than the previous minimum wage... wonder how that works.

[Skeptic7]

6 minutes ago, whatsupdoc said:

But the productivity of the workers is a lot lower in Thailand so for one worker needed in the USA you'll need several here. Plus Western food ingredients are more expensive here than in the USA (cheese is a good example).

Cheese is one example, but the veggies, breads, sauces...almost everything else is cheaper here.

 

Walk into a Subway in the States and 2 sandwich artists working...same here. Only in the States they work 8 hour shift. Here is the shift 8 hours? More likely 10-12. But even if 8...for the money, Thai labor WAY cheaper for same productivity. There is no comparison.

[webfact]

Daily minimum wage hike ranges from Bt5 to Bt22

By The Nation

 

Jarin Chakkapak, permanent secretary of the Labour Ministry

 

After a seven-hour marathon meeting, a committee tasked with setting the minimum wage unanimously agreed to raise daily wages by between Bt5 and Bt22 per day nationwide, depending on the economic growth of each province.
 

The new wage will come into effect on April 1, Jarin Chakkapak, permanent secretary of the Labour Ministry, who chaired the tripartite minimum wage committee, said on Wednesday after the meeting.

 

Phuket, Chon Buri and Rayong will have the highest daily minimum wage of Bt330, while Bangkok and surrounding provinces will have the second highest of Bt325.

 

Workers' representatives who attended the meeting expressed satisfaction with the new rates.

 

The nationwide minimum wage was raised from Bt300 to Bt310 last year after remaining static for three years from 2014 to 2016.

 

After the increase, the average minimum wage will be Bt315.97 per day.

 

Jarin said he would propose the hike to Labour Minister Pol General Adul Saengsingkaew before submitting it to the Cabinet.

 

Source: http://www.nationmultimedia.com/detail/national/30336545

 

-- © Copyright The Nation 2018-01-18

[gunderhill]

2 hours ago, missoura said:

Before I found firm footing in life, I held numerous minimum wage jobs to get by. Every dollar counted and eventually life became more enjoyable. I didn't like some of the jobs but it was necessary to show up and work if I wanted to eat.

 

Here in Thailand, we often have general labor work that needs to be done. Trying to find someone to show up sober on a consistent basis to trim trees, mow grass, rake leaves, etc., can be difficult. For the last several years we have been paying B300 a day for these menial jobs. Mostly, it is the older married ladies that show up and work.

 

Many of the men in this rural area now want B400-450 per day for their labor. And apparently many of these young men are unable to work alone, as a friend or two is needed to help. They show up at 8:30 and then sit around until 9. They take an hour off for lunch and are ready to go home by 4. Between taking breaks and playing on their phones, not much work gets done.

 

I get blamed for this labor problem. My wife has always said that B300 was to much to begin with and that I don't understand Thais. I think she has a point...

 

 

100% the REALITY of trying to find rural workers  here, by me, men 500  a  day nothing less, got a  60 year  old woman now as caretaker 12k a  month although she originally said 9k then 10 then 12K however we  were stuck and had  no choice, she works  ok but is  no good  for any heavy work digging lifting stuff etc.

Many are  just plain bone idle.

[gunderhill]

54 minutes ago, Skeptic7 said:

Thing that strikes me is...look at any of the Western restaurants here. The prices here are at least as much as in the west...usually more...yet the employees are here are paid approximately 80% less for the same crap. A 7-11 or Pizza Hut or Subway employee here is making about $10/day. In USA, more like $10/hour. Construction workers here paid peanuts for hard labor as opposed to The West. BTS, MRT and airport employees...same. Thailand has almost nothing for labor costs, which is one of the big reasons this economy (and currency) always doing so well. Next to nothing labor costs. 

Have  you recently asked a Thai construction worker his daily  rate? I'm betting its 500 a  day minimum.

Even Burmese now are  shying away from manual work, a  friend whose  Thai has a fruit  farm close by, they employed  Laos  staff at  just over 300 a  day, this year the Laos   are now saying we  want the same salary but 10% of any profit  made on the fruit  sales.

[Sydebolle]

Next nail in the coffin; the salaries were tampered with by the government all the time. The only thing the government forgot was to adjust the education provided at the same time. 

I have not the slightest clue, what Thai kids are taught throughout those twelve years at school but it was very bad a generation ago and I, for one, cannot see any improvement whatsoever.

Bottomline is, the same unskilled lot of useless workers are now getting more expensive. Thai bigwigs resort to illegal alien employers; the alien crowd tries the very best within the legal framework or - as in my case - folded up and moved away.

How sad, it's the people who will suffer in the future as money still needs to be earned and not awarded by government laws. 

[Happyman58]

3 hours ago, selftaopath said:

How can a Thai/ family live on these wages?  

They cant But you should ask the ministers and generals how do they they live on their wages 

[Get Real]

What a great idea! As a result the areas that is poor only going to get 5 Bath hike, the places that are on a higher economic level get 22 Bath. Means that they definitely don´t want to change the structure of poverty in Thailand.

[Get Real]

51 minutes ago, Happyman58 said:

They cant But you should ask the ministers and generals how do they they live on their wages 

They invest their money in expensive watches. 

[Srikcir]

5 hours ago, webfact said:

The revised daily range of 308 baht to 330 baht

5 hours ago, webfact said:

The wage will climb from April [2018]

A minimum daily wage of Bt300 was effective January 2013.

• Thus, the new wages amount to what would have been an average annual wage increase of about 0.21% and 0.22% respectfully through December 2017.

The total inflation rate January 2013- December 2017was about 4%

https://knoema.com/atlas/Thailand/Inflation-rate

Thus, the annual average inflation rate was about 0.8%.

Ignoring inflation for 2018Q1 (data not available), the new minimum wage increases offer only minimal value to workers whose wages will remain behind inflation and overall useless for contributing to national economic growth.

[JimGant]

Quote

But the productivity of the workers is a lot lower in Thailand so for one worker needed in the USA you'll need several here.

Lemme see. You go into a Home Depot in the States, and, if lucky, might find one person readily available to direct you to the aisle you're looking for. But in Thailand -- go into a Home Pro and you need a fly swatter to back off ten workers giving you help you haven't requested. Is that how you define "lot lower productivity" in Thailand?

 

Quote

So, I know the cousin of my gf works from 8am to 5pm at a local grocery store for 260 baht a day. That is less than the previous minimum wage... wonder how that works.

Depends. The owner could be a gouger. Or, more likely, 260 baht is the market wage, allowing him to hire one more worker, for a slightly increased profit, or at least no loss in profit. But if he had to pay the fiat wage of 300 baht, there would be no economic incentive to hire one more worker, at the margin.

Yeah, economic theory -- but totally applicable in real world business situations.

[khunPer]

7 hours ago, selftaopath said:

How can a Thai/ family live on these wages?  

You shall not convert to your homeland's currency – and for example think of $10 a day – but look at what you can buy for the wage, and compare what similar will cost in your home country, and how much you can buy for your home country's minimum wage after taxation; the you can compare.

An often used method is eggs, as they are locally produced: How many eggs can a Thai buy in a supermarket for a minimum wage, and how many eggs can one buy for a minimum wage after tax (Thais don't pay tax on minimum wages) in your home country, or another country you wish to compare with..?

 

You can live, or survive, on minimum wages – many families lives from something like 2 x 8,500 baht a month – but not much left for partying. Many people works away from home, and are sometimes offered a free room at their workplace, and when renting a room is often in the level 2,500 baht to 3,500 baht a month; two single workers often share a room. If you use an old-fashioned calculation like 1/3 for accommodation, and 1/3 for food, and 1/3 for other expenses; it still makes sense with approximately per person 100 baht a day for food, which you can live from, some 2,500 baht a month for room etc. (which often is less than 2,000 baht per adult working person), and some 3,000 baht a month for other things...

[Happyman58]

3 hours ago, Get Real said:

They invest their money in expensive watches. 

Yes i know they do that because they want to see the Thai people go ahead The watches are an investment and you thought he bought them (sorry borrowed them my mistake) for his own personal use  Dont you know the junta does every thing to improve peoples lives with no thought what so  ever of there own personal way of living  

[weegee]

As long as you pay a DAY rate, you will get nothing for the money...

 

TRY paying an hourly rate of minimum wage at 40BHT per hour, for the hours worked ( 8 hrs min per day)... If they dont want to work for this rate, thats fine, sooner or later they will learn they are better off like this, if they are willing to work.

Then if you have good workers, lift it to 50bht per hour, for the hours worked, plus a bonus for decent work. But dont tell them that in the begining.

 

That way if they want to bludge, you can get rid of them after a couple of hours....and find someone who wants to make a go of life.

[gunderhill]

12 minutes ago, weegee said:

As long as you pay a DAY rate, you will get nothing for the money...

 

TRY paying an hourly rate of minimum wage at 40BHT per hour, for the hours worked ( 8 hrs min per day)... If they dont want to work for this rate, thats fine, sooner or later they will learn they are better off like this, if they are willing to work.

Then if you have good workers, lift it to 50bht per hour, for the hours worked, plus a bonus for decent work. But dont tell them that in the begining.

 

That way if they want to bludge, you can get rid of them after a couple of hours....and find someone who wants to make a go of life.

Problem  is  you  have  to  stay  next  to  them  all  day because  as  soon as your'e  not there.

[MyFriend You]

9 hours ago, selftaopath said:

How can a Thai/ family live on these wages?  

Halleluya Ma, we can buy the new motorbike now,  gotta a 10 baht raise today.

I don't know, basic laborers can live communally on 330 baht a day easily enough, construction worker, family of 10 all working is 3300 a day, sleep on a platform and mosquito net with electricity, wash clothes in a bucket - I have seen some happy people in country living on less.  All a matter of perspective.  Of course these are real Thai Families, without the Yaa bah taking, Kraton smoking, Lao Kao drinking men in the house.  Real families that work 6 days a week, 12 hours a day 

Edited January 18, 2018 by TunnelRat69

[Darcula]

Quote

Thailand Boosts National Minimum Wage for First Time Since 2013

 

This is just another gift for the lucky conglomerate that has near-monopoly over essential goods, and controls almost all of the grassroot retail industry.

[JimGant]

Quote

How can a Thai/ family live on these wages? 

Maa and Paw both work. Paw gets a vasectomy before marriage, thus no expensive offspring, nor lost job due to stay-at-home requirement. Everything's fine, until old age, when there are no young folks around to take care of all the old farts.

 

Japan has been seriously evaluating this situation now for some time. Not sure Thailand, however,  is yet sufficient enough to pay for stay-at-home moms....

[kickstart]

I live in a rural area ,but we have a lot of  industry  ,a steel mill  3 chicken processing factories,,a pig processing factory ,a factory making roofing sheets for houses, plus a big electronics ,and  clothing  factory , before they where 100% Thai employees , earning  the minimum wage ,plus over time.

When the last minimum wage was implemented  Cambodian workers started to work at the factories, now more and more workers are Cambodians,at the pig processing factory Cambodians do all the killing of   the pigs  ,and I am seeing more and more at our local imagration office ,plus more Burmese .

Why are they so many ,they are willing to work the long hours for the money , Thai's will not do the work. 

Companies are using the Cambodians  workers  too ,our electronic factory, has a habit of giving  long-term Thai workers voluntary  redundancy, friend of mine  worked there for 15 years , earning in a good month 18 000 baht, they offered her 100k  redundancy, which she took, they then got in some Cambodian's,and paid them  a lot less.

I can see our local companies employing fewer workers than before as has been said for every one farang worker, they are 2-3 Thai workers, and what few offices  I have seen working,thay all seem to be doing the same  repetitious work that holds true, companies will just make they existing workforce work harder, as it is the food processing factories workers work overtime almost every day.

This could lead to higher unemployment ?, companies not taking on new workers ,and I would say inflation would eat most of the pay rise, could end up being a double-edged sword for the government, the test of time will tell.