Thailand’s government proposes swift minimum wage increase to 400 baht

[webfact]

 

Prime Minister Srettha Thavisin has announced that the government will be pushing for a swift increase in the minimum daily wage to 400 baht, in a bid to assist workers grappling with rising living costs. The decision will be reached through negotiations between the government, employers, and workers to agree upon a reasonable amount.

 

The prime minister shared the plans during a parliament debate on the government’s policy statement. The wage increase is part of the government’s economic stimulus measures, designed to bolster the financial well-being of Thailand’s workforce.

 

During the election campaign, the promise to increase the daily minimum wage to 600 baht by 2027 was a key pledge by the ruling Pheu Thai Party. The prime minister, who also holds the position of Minister of Finance, highlighted the country’s low unemployment rate, which stands at a mere 1%.

 

Despite this, the prime minister acknowledged that the demand for labour remains high, necessitating a reliance on migrant workers. He emphasised the need to protect the rights and dignity of these workers and to provide them with welfare and safety. To this end, the government plans to establish a one-stop service centre to streamline their documentation process.

 

by Neill Fronde

Picture courtesy of ThaiPost

 

Full story: https://thethaiger.com/hot-news/economy/thailands-government-proposes-swift-minimum-wage-increase-to-400-baht

 

-- The Thaiger 2023-09-13

 

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[bkk6060]

About 11 dollars a day.  Very sad I have no idea how people make it, but many do.  Resourceful Thai people got to hand it to them.

[happysoul]

Good move considering the raise of costs of living.

 

But here up North (probably elsewhere but I talk about what I know) , the people still get 300 (250 for woman) per day for harvesting. It's been like that for more than 10 years and never changes.

[khunPer]

400 baht is about around 15% increase of the minimum wage. Prices will increase when labour costs increase more than just slightly more than "consumer price index". Soon after, the people with minimum wage salaries won't be able to buy more for the higher salary than before; that was what happened last time a Thaksin-government forced a high minimum pay rise from around 200 baht per day to 300 baht per day.

 

The consumer price index is 108.41 (August 2023). 2022 index is just under 108 (107.7 in September 2022) – when minimum salary last time was adjusted to 331-355 baht per day, depending of province and local living costs – one year increase is 0.66%.

 

If compared with the consumer price index during the Covid-period, the increase is about 8%; i.e. from index 100 to index 108.

[bignok]

3 hours ago, bkk6060 said:

About 11 dollars a day.  Very sad I have no idea how people make it, but many do.  Resourceful Thai people got to hand it to them.

Why they marry farangs paying them 400,000 baht a year plus free rent.

[redwood1]

Minimum wage went way up in California....And now it cost like 2,000 dollars a month to rent a apartment......So the workers are even more poor with the raise...

[BenStark]

16 minutes ago, bignok said:

Why they marry farangs paying them 400,000 baht a year plus free rent.

I guess that calculation is based on your own expenses

[smedly]

and does that apply to foreign labor?

 

equal rights to all

[hotchilli]

17 hours ago, webfact said:

Prime Minister Srettha Thavisin has announced that the government will be pushing for a swift increase in the minimum daily wage to 400 baht, in a bid to assist workers grappling with rising living costs.

What constitutes a minimum days wage?

8 hours

10 hours

12 hours

Plus?

why not have a minimum hourly rate?

[RichardColeman]

The more the minimum wage goes up, the less money there is in recycling. Put it up much more and Thailand will be a complete and utter plastic wasteland

[daveAustin]

19 hours ago, webfact said:

During the election campaign, the promise to increase the daily minimum wage to 600 baht by 2027 was a key pledge by the ruling Pheu Thai Party. The prime minister, who also holds the position of Minister of Finance, highlighted the country’s low unemployment rate, which stands at a mere 1%.

Very noble, I’m sure, but as a minister of finance would surely be able to work out, raising minimum wages does not really help those paid the least for the blatantly OBVIOUS reason already stated. It just takes more money out of everyone’s pockets. Finance people will say it doesn’t necessarily drive inflation but that’s prattle. It will always have a knock on effect, while employers will start looking at efficiency and offloading superfluous staff. Gotta be done steadily and incrementally, not in massive election-fulfilling chunks. 

[HaoleBoy]

19 hours ago, happysoul said:

Good move considering the raise of costs of living.

 

But here up North (probably elsewhere but I talk about what I know) , the people still get 300 (250 for woman) per day for harvesting. It's been like that for more than 10 years and never changes.

Why the discrepency from the Gov stated min. wage?

I heard this down in Hua Hin for an older lady working on a "Royal Project" ... she only got 300 thb / day.

 

Even the Gov states the current min wage is 300 - 353 thb / day.  Why?

 

Is the min wage for 6 days a week at 10 hr days?

[Cake Monster]

Sounds like a statement made by somebody that really has no idea about pol;otics

Its like this

Increase minimum wage and Inflation will increase

Costs of Exports will rise in an already under the cosh sector due to being uncompetitive

Not doing very well so far

[mommysboy]

29 minutes ago, Cake Monster said:

Sounds like a statement made by somebody that really has no idea about pol;otics

Its like this

Increase minimum wage and Inflation will increase

Costs of Exports will rise in an already under the cosh sector due to being uncompetitive

Not doing very well so far

It's like this: poor people can barely survive! 

[DJ54]

1% unemployment rate.. around her it’s 90%… at harvest time 4%

[Cake Monster]

5 hours ago, mommysboy said:

It's like this: poor people can barely survive! 

I could not agree with you more.

But to give the poor more Money is not the answer

The answer is to get more money out of the Rich via Taxation  Etc

[moogradod]

27 minutes ago, Cake Monster said:

I could not agree with you more.

But to give the poor more Money is not the answer

The answer is to get more money out of the Rich via Taxation  Etc

It is the rich which finally pay the salaries for their employees. 400 THB is still a joke. Lets make it 600 (including at least a 3 week holiday - fully paid of course).

 

I do not believe that this will have a major effect on everybodys expenses. The thing here is that the rich should just make less profit. At least it should be set up like that.

[Cake Monster]

400 Baht is not a Joke

Vietnam is around 30 % cheaper for production than Thailand, have a better Education System and therefore more highly skilled people in the workforce

Thai Exports are on the slide now, and to increase operating costs is suicide

Pay rises are only awarded upon increased productivity, and to just hand out Money without that major criteria is pure Lunacy

[moogradod]

4 hours ago, Cake Monster said:

400 Baht is not a Joke

...............

Pay rises are only awarded upon increased productivity, and to just hand out Money without that major criteria is pure Lunacy

Salaries are a mayor cost factor in the West. I doubt that this is the case to the same extent here. The 250 Baht plus from 350 Baht must not be financed by increased productivity or higher prices. Just take it away from the profit from the insanely rich. This was my idea in this respect we are almost talking peanuts here.

[quake]

Not a problem, the Thai's will just work a bit harder. 

[Cake Monster]

19 hours ago, moogradod said:

Salaries are a mayor cost factor in the West. I doubt that this is the case to the same extent here. The 250 Baht plus from 350 Baht must not be financed by increased productivity or higher prices. Just take it away from the profit from the insanely rich. This was my idea in this respect we are almost talking peanuts here.

Salaries are just as much a major issue here as in Developed Countries.

probably more so

With Countries in SE Asia such as Vietnam in the region of 35 % lower in production costs over Thailand any rise in Salaries will impact upon competitiveness

When Companies cannot compete, they close the doors laying people off

Thats the reality

[metisdead]

An off topic post in violation of our Community Standards has been removed.

[Hummin]

On 9/13/2023 at 12:49 PM, happysoul said:

Good move considering the raise of costs of living.

 

But here up North (probably elsewhere but I talk about what I know) , the people still get 300 (250 for woman) per day for harvesting. It's been like that for more than 10 years and never changes.

In our area we cant get workers now for less than 500 a day included lunch.

 

Last project we did with fencing, 3 people 2 not even full days work 4000,- baht without lunch and energy drinks. Electricians charge way more of course, and local skilled labor workers starts at 600 if lucky to find anyone available or who are skilled at all. Larger projects is priced by unit, not by days.

8 minutes ago, Cake Monster said:

Salaries are just as much a major issue here as in Developed Countries.

probably more so

With Countries in SE Asia such as Vietnam in the region of 35 % lower in production costs over Thailand any rise in Salaries will impact upon competitiveness

When Companies cannot compete, they close the doors laying people off

Thats the reality

How is the infrastructure in Vietnam? I'm quite impressed how progressive the government have been to build massive Infrastructure from north to south, east and west and it continues as we speak non stop. 

[FruitPudding]

On 9/13/2023 at 4:08 PM, redwood1 said:

Minimum wage went way up in California....And now it cost like 2,000 dollars a month to rent a apartment......So the workers are even more poor with the raise...

The irony.

 

What is it with these damn socialists thinking they can just adjust things.

 

Nature prevails.

[freeworld]

On 9/14/2023 at 6:19 AM, hotchilli said:

What constitutes a minimum days wage?

8 hours

10 hours

12 hours

Plus?

why not have a minimum hourly rate?

There are labour laws governing the hours per work day and break/rest times and time off.

 

Generally most people know this.

[moogradod]

10 minutes ago, freeworld said:

There are labour laws governing the hours per work day and break/rest times and time off.

 

Generally most people know this.

From my experience (family members) many employers do not care. Besides holidays and rest times are not paid. I do not know if this is gererally the case but I know close relatives that work their a__es off and do not get compensated. Reminds me of the mediaval ages in Europe. The Elite and the Potato Farmers. Totally unfair.

[lapamita]

On 9/13/2023 at 7:45 AM, bkk6060 said:

About 11 dollars a day.  Very sad I have no idea how people make it, but many do.  Resourceful Thai people got to hand it to them.

without increase in productivity and education , most are overpayed. over the years increase of productivity and kockledge lacking behind, and that why prices increase all time  ( high labourcost and greed of owners ,not only one to blame)

 

Yes salary is low compare to developed countrys , but high in compar to 80% of the rest of the world

 

i see to many thais not worth even worth 400 for work bcs lack of knowledge ,lazyness  ...and many others are working for much more than the minimum bcs of knockledge and will to work

[sscc]

2 hours ago, Hummin said:

In our area we cant get workers now for less than 500 a day included lunch.

 

Last project we did with fencing, 3 people 2 not even full days work 4000,- baht without lunch and energy drinks. Electricians charge way more of course, and local skilled labor workers starts at 600 if lucky to find anyone available or who are skilled at all. Larger projects is priced by unit, not by days.

How is the infrastructure in Vietnam? I'm quite impressed how progressive the government have been to build massive Infrastructure from north to south, east and west and it continues as we speak non stop. 

Where are you impressed about infrastructure ?   Vietnam or Thailand. 

Thee is not much  "East to West" in Vietnam,  long and narrow shape in Vietnam geography. 

 

Thailand infrastructure had been very nice for many decades. 

[hotchilli]

44 minutes ago, freeworld said:

There are labour laws governing the hours per work day and break/rest times and time off.

 

Generally most people know this.

Which many unscrupulous employers ignore with impunity.

Most people know this too.

[Hummin]

6 minutes ago, sscc said:

Where are you impressed about infrastructure ?   Vietnam or Thailand. 

Thee is not much  "East to West" in Vietnam,  long and narrow shape in Vietnam geography. 

 

Thailand infrastructure had been very nice for many decades. 

Of course Thailand. Riding around Thailand on motorbikes since 2005 on my own, alot have changed during that time with great speed.