Prime Minister Srettha Thavisin yesterday responded to criticisms surrounding the recent Cabinet resolution, which offers civil servants the option of receiving their monthly salary in two instalments instead of the usual single payment. The resolution, primarily aimed at stimulating the economy, was unveiled during the first Cabinet meeting of his administration on Wednesday and is tentatively set to start in January.

 

With an estimated three million state officials nationwide, including teachers, police officers, and armed forces personnel, the new payment system could potentially have a significant impact. Nevertheless, Srettha dismissed rumours that the government was short of cash, necessitating this change in salary distribution.

 

The 61 year old PM justified the decision by stating that the government would have to prepare to pay salaries even earlier than usual since the first half of the salary would be disbursed mid-month.

In response to concerns about civil servants’ ability to manage their finances with this new system, especially given the need to pay off debts by the end of the month, Srettha suggested that it could be possible for them to negotiate two payments per month with their creditors.

 

by Atima Homtientong

Picture courtesy of Bangkok Post.

 

Full story: The Thaiger 2023-09-15

 

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The country runs, for the most part, on a single monthly "salary day".

 

It will be challenging for everyone in the supply chain (debt management) to make this change.

 

Not surprised on the push-back.

 

 

'Foot in mouth' syndrome strikes again.

I had a ten baht coin in my left pocket and felt poor.

But I traded for two 5 baht coins, one for each pocket, and now I really am rich and can stimulate that economy!

Pay half the salary early it'll go on the mid-month lottery tickets.

Many civil servants seem to have to resort to high interest credit cards to get to the end of the month. This policy could save on their interest payments. My wife has a business that is boosted every month on the 26th (Payday). This policy could now get customers, flush with a pay packet, twice a month. Win/win! 

a) it corresponds to the present Labour Law of Thailand
b) many Thais have always had an issue in managing their own money (a different thing though is when they manage the money of an alien ???? )
c) it will create another few thousand jobs to manage this monetary horn of plenty being depleted twice and not only once a month
d) the World Bank lists 38 million Thais as labour force which means, that one in twelve work for the government - hence the latter is the lands biggest employer and might have figured out by now, how to pay this bureaucratic monster in (mostly) uniforms. The other top employer does not really work according to a), certainly can be found in the second half of b), has no inpact on c) and, as it officially does not exist, the conclusion to d) is obsolete .....  

Not properly thought out as usual. The cost of having to reprogram payroll systems to include bi-monthly payments will be enormous, without taking into account all the aforementioned reasons against such a move.

Not a good idea, when one has monthly payments. They tried that system other places and ended up with that the employer need to withdraw money from the half-monthly salary to pay the monthly bills...

12 hours ago, Emdog said:

I had a ten baht coin in my left pocket and felt poor.

But I traded for two 5 baht coins, one for each pocket, and now I really am rich and can stimulate that economy!

That Sir is spot on, could you please pass this on to the PM as clearly he is not the brightest if this policy is anything to go by...