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Labor Ministry Dismisses Rumors About Minimum Wage Raise


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by Natthaphon Sangpolsit

    

BANGKOK (NNT) - The Ministry of Labor has dismissed claims on social media of plans to raise the minimum wage to 492 baht, up from 300 baht currently.

 

Labor Minister Suchart Chomklin said the minimum wage is assessed by a tripartite committee representing the government, employers and employees. The current minimum wage has been in place since January 1, 2020, and is undergoing review by the committee.

 

The minister said evaluation of the minimum wage for Bangkok and other provinces will be completed by July. The committee will then work to complete its consideration of all relevant data by September.

 

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Minister Suchart explained that Thailand’s minimum wage is higher than in most ASEAN member states, barring Singapore, and is in fact much higher than for Vietnam, Malaysia and Myanmar.

 

He also said moves to raise the minimum wage would need to account for factors such as inflation and the cost of living in each province. He added that the government has assisted workers through various programs.

 

Minister Suchart further noted that the minimum wage tends to be more of an issue for migrant workers, as Thais are generally employed in occupations that pay more than the minimum.

 

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-- © Copyright NNT 2022-03-21
 

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I - probably like more of you - am someone that recycles their bottles, plastic, tins, paper, etc. We have the lorry come round every few months. Wife sells it - not great money, usually about 300 baht, but it pays the water for a month, so its ok. 

 

Now, one of the fears I have is that wage rises effects things like this. Making recycling just not worth the effort. The cost cutting of street sweeper-uppers. 

 

Fully expect any 'huge' wage rise - if ever - to result coincide with a  huge pollution explosion.

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10 minutes ago, RichardColeman said:

I - probably like more of you - am someone that recycles their bottles, plastic, tins, paper, etc. We have the lorry come round every few months. Wife sells it - not great money, usually about 300 baht, but it pays the water for a month, so its ok. 

You do well, my Mrs keeps it!

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1 hour ago, RichardColeman said:

I - probably like more of you - am someone that recycles their bottles, plastic, tins, paper, etc. We have the lorry come round every few months. Wife sells it - not great money, usually about 300 baht, but it pays the water for a month, so its ok. 

 

Now, one of the fears I have is that wage rises effects things like this. Making recycling just not worth the effort. The cost cutting of street sweeper-uppers. 

 

Fully expect any 'huge' wage rise - if ever - to result coincide with a  huge pollution explosion.

My mother in law seeks is to an old woman who comes round.  At least she did when I was here last.

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2 minutes ago, kimamey said:

My mother in law seeks is to an old woman who comes round.  At least she did when I was here last.

Used to have a disabled guy come round with a handcart, mainly wanted cans and bottles.... he stopped bothering as neighbour's alcoholic son is no longer there supplying him with plenty. It is quite an effort for him to get up the street. 

He wants them for free of course, Mrs wants to sell them... not only falangs are khee niaow!

Edited by jacko45k
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9 hours ago, jacko45k said:

Used to have a disabled guy come round with a handcart, mainly wanted cans and bottles.... he stopped bothering as neighbour's alcoholic son is no longer there supplying him with plenty. It is quite an effort for him to get up the street. 

He wants them for free of course, Mrs wants to sell them... not only falangs are khee niaow!

If it was down to me I'd just let them have them. I think they need the money more than me.

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14 minutes ago, RobU said:

Per hour? Per day? Per week? Per month? 

This was always one of the problems with the minimum wage. It's the Thai thing of taking something that works well elsewhere and changing it so it's a mess. It's normal to set a minimum wage by the hour not the day. That way if you want someone for 4 hours you don't have to pay them for a whole day. The other problem was and I assume still is that there was an attempt to appeal to nationalists and racists by only applying it to Thais. Sounds great if you don't like foreigners getting jobs but of course it just means migrants are cheaper to employ. When the Yingluck government brought in the 300 baht minimum for Thais some companies opened factories close to borders to take advantage of the migrant labour.

 

The other example of adding Thainess to a perfectly good idea was the tax refund on new vehicles. It was done elsewhere including in the UK where if you gave up an old inefficient vehicle when buying a new more fuel efficient and less polluting one you got a reduction in price paid for by the government. That meant that it caused no increase in vehicle numbers just better vehicles. In Thailand that was changed to first vehicles which caused an increase as there would be no vehicle to take off the road. Of course there were also pickups bought by old people who had never owned a vehicle and couldn't drive but their children or grandchildren could instead.

 

I can still remember all the SUVs and pickups coming towards me in the middle of the narrow road to the market with panicked faces behind the wheel.

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35 minutes ago, kimamey said:

This was always one of the problems with the minimum wage. It's the Thai thing of taking something that works well elsewhere and changing it so it's a mess. It's normal to set a minimum wage by the hour not the day. That way if you want someone for 4 hours you don't have to pay them for a whole day. The other problem was and I assume still is that there was an attempt to appeal to nationalists and racists by only applying it to Thais. Sounds great if you don't like foreigners getting jobs but of course it just means migrants are cheaper to employ. When the Yingluck government brought in the 300 baht minimum for Thais some companies opened factories close to borders to take advantage of the migrant labour.

 

The other example of adding Thainess to a perfectly good idea was the tax refund on new vehicles. It was done elsewhere including in the UK where if you gave up an old inefficient vehicle when buying a new more fuel efficient and less polluting one you got a reduction in price paid for by the government. That meant that it caused no increase in vehicle numbers just better vehicles. In Thailand that was changed to first vehicles which caused an increase as there would be no vehicle to take off the road. Of course there were also pickups bought by old people who had never owned a vehicle and couldn't drive but their children or grandchildren could instead.

 

I can still remember all the SUVs and pickups coming towards me in the middle of the narrow road to the market with panicked faces behind the wheel.

Yes but is the rate per hour or per day in Thailand, you haven't said. I think you are inferring that it is per day but can you confirm please. I am fairly new to Thailand and I expect to employ labourers to help with some work I will do on the house when I finally get back. I don't want to to be the White Buffalo easily ripped off.

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Cheap foreign labour affects a job market drastically supply and demand determines the wage. Indigenous people on low wages are the worst affected. They are kept to to minimum wage and this never rises above that because there is plenty of foreign labour to take their place. In the UK there is a very large casual labour market where no one gets more than minimum wage. In one instance an employer stopped using UK citizens (effectively employed but on a zero hours contract which stipulated an hourly rate and an increased holiday/night rate) because foreign labour were signing up to zero hours contracts for a lower hourly rate with no difference in holiday or night rate. This happened at Christmas (it was a cake making factory) when more of these zero hours contractors would be utilised. It isn't that foreign labour do the jobs that no one else wants it's because foreign labour undercuts indigenous labour.

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39 minutes ago, RobU said:

Yes but is the rate per hour or per day in Thailand, you haven't said. I think you are inferring that it is per day but can you confirm please. I am fairly new to Thailand and I expect to employ labourers to help with some work I will do on the house when I finally get back. I don't want to to be the White Buffalo easily ripped off.

Apparently it's still per day. I asked my wife who works in the Department for Skill Development which is part of the Ministry of Labour and she says you could agree a price with them for whatever you want done. If they say for example they can do the job in less than a day so 200 baht is what they charge then that should be fine unless anyone knows any different. I always find that what I'm quoted is cheap enough anyway so I often just give a bit more. 

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1 hour ago, kimamey said:

Apparently it's still per day. I asked my wife who works in the Department for Skill Development which is part of the Ministry of Labour and she says you could agree a price with them for whatever you want done. If they say for example they can do the job in less than a day so 200 baht is what they charge then that should be fine unless anyone knows any different. I always find that what I'm quoted is cheap enough anyway so I often just give a bit more. 

Thanks, I think I would be happy to pay the national rate.

Edited by RobU
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