Thai Wage Hike Postponement Leaves Low-Income Earners Disappointed

[webfact]

 

The Thai government's delay in implementing a promised wage increase has caused uproar among workers who will have to wait until October for the minimum wage to rise to 400 baht.

 

The decision comes as a particular blow in light of the salary increases planned for white-collar government workers and retirees, following Labor Day. Critics argue this approach distorts the labor market and offers little benefit for workers in low income brackets.

 

Economist Assoc Prof Dr. Kiriya Kulkolkarn at Bangkok's Thammasat University suspects a political motive behind the measures. She contends that the recent, marginal wage increases have had little impact on the economy.

 

Instead, she suggests alternative government strategies, such as controlling commodity prices, subsidizing necessities, and offering low-income families financial support.

 

The current minimum wage in Thailand, ranging from 330 to 370 baht, is already higher than that of surrounding countries, but falls short of meeting the needs of its workforce. In order to compete with higher-skilled regional competitors, Kiriya urges upskilling of Thai workers, particularly in digital fields. 

 

Concerns have been raised about the potential for workforce downsizing in response to a higher minimum wage; Kiriya confirms small and medium businesses may be particularly affected.

 

Aggressive moves to form labor unions and negotiate for improved labor conditions could offset these challenges. However, obstacles still exist, particularly around employment through subcontractors and the emerging gig economy which often circumvent labor-protection laws. 

 

Lastly, Sia Jampathong, a MP from the Move Forward Party, expressed his disappointment at the rejection of the labor-protection bill he proposed, which sought to limit work hours, guarantee annual leave, and extend labor protections to gig-economy workers. In contrast, Parliament approved a different labor bill seeking to extend paid maternity leave.

 

File photo Facebook NNT

 

-- 2024-05-01

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[JoePai]

Pay peanuts and you know what you get

[connda]

And then they try to economize by purchasing cheap goods from Lazada and Shopee only to get hit by a 7% VAT on Chinese goods.  On top of inflation.  Yep - keep the ol' government foot stamping on a human face forever. 

[edwinchester]

"Thanks for voting PT, now <deleted> off"

[hotchilli]

4 hours ago, JoePai said:

Pay peanuts and you know what you get

Migrants.

[khunPer]

Adjustments in minimum salary to keep up with inflation, and a tiny extra level to improve lifestyle, might be more important than the "digital wallet"...

[natway09]

khunPer

Agree !!

[Srikcir]

6 hours ago, edwinchester said:

"Thanks for voting PT, now <deleted> off"

Remembering the PTP represented the minority.

[Srikcir]

8 hours ago, JoePai said:

Pay peanuts and you know what you get

More foreign workers trafficking into Thailand.