Labour Minister Stands Firm on 400 Baht Wage Rise Despite Concerns

[snoop1130]

 

In a decisive move, Labour Minister Phiphat Ratchakitprakarn confirmed that the nationwide minimum wage will be raised to 400 baht on October 1, amid growing concerns from businesses about potential economic impact. Following extensive discussions and a study by the Ministry of Labour, the decision aims to navigate Thailand’s slowing economy with a focus on analytical backing.

 

Substantial compensatory measures have been outlined to support businesses, particularly those with over 200 employees, which represent a significant portion of the workforce. The Social Security Office (SSO) will extend a 1% discount on contributions to the Social Security Fund (SSF) until September next year to offset the financial burden.

 

Smaller enterprises, typically with under 200 employees, are exempt from this wage increase. The ministry intends to lean on historical strategies, reflecting measures from 2012, to assist these SMEs until economic recovery strengthens.

 

 

 

 

Adding to the conversation, Sanga Ruangwattanakul, President of the Khao San Road Business Association, expressed worries about potential negative effects such as employment slowdowns and rising costs, urging the government for tax relief and long-term employment solutions.

 

As the new wage policy edges closer to implementation, its balanced execution remains crucial in mitigating business impact while supporting worker welfare.

 

File photo for reference only

 

-- 2024-09-09
 

 

Get the ASEAN NOW daily NEWSLETTER - Click HERE to subscribe

[Gottfrid]

I can agree with that the wages should go up to 400 baht per day, as that is still very low. However, it can´t be only wages that go up, and the result same, as that would mean the need to cut amount of employees.

The big issue is that I see so much problems with people working. They many times come late, and they not work very hard. Many times there are 4-6 people standing talking while 2 of them take down some boxes and so on........

People that want higher salaries also have to work for it.

 

I would never accept people working for me to sit in phone just because have no customers. There are more things to do, than just wait for customers. Many times when I leave my younger daughter to school, some teachers stand to greet the parents and children at the gate in the morning. Also here, they stand with their phones, and hardly recognize the parents and children.

 

I could go on forever. The fact is, that if the companies should be able to give higher salaries, the employees also have to start work and do their job with pride and interest.

Edited September 9 by Gottfrid

[Tropicalevo]

41 minutes ago, Gottfrid said:

I can agree with that the wages should go up to 400 baht per day, as that is still very low

It higher than other SE Asia countries.

Vietnam especially.

Vietnam's workforce is also much better educated.

Guess where some International manufacturing companies will think about moving to?

[BangkokReady]

1 hour ago, Gottfrid said:

The big issue is that I see so much problems with people working. They many times come late, and they not work very hard. Many times there are 4-6 people standing talking while 2 of them take down some boxes and so on........

 

It's kind of a poisoned chalice.  There's no way that people are going to put up with wage increases without expecting other things to change.  Obviously, the low wage allows more employees than needed, and this could likely prompt a change in this attitude.

 

It's a nice idea to develop and change, but often the things that change have negative effects as well as positive.

[MarkBR]

55 minutes ago, Tropicalevo said:

It higher than other SE Asia countries.

Vietnam especially.

Vietnam's workforce is also much better educated.

Guess where some International manufacturing companies will think about moving to?

So a person might suggest that inadequacies of education need to be fixed as well if the economy is going to get better.

[hotchilli]

10 hours ago, Tropicalevo said:

It higher than other SE Asia countries.

Vietnam especially.

Vietnam's workforce is also much better educated.

Guess where some International manufacturing companies will think about moving to?

Vietnam has the right idea... it's fast becoming a power-house in Asia.

[watchcat]

11 hours ago, Gottfrid said:

I can agree with that the wages should go up to 400 baht per day, as that is still very low.

 

What about the pensions then?  Wife gets 600 baht/ month!

[2baht]

Why not make bar fines 6-700 baht a throw! Wind the mongers up!😏

[Gottfrid]

2 hours ago, watchcat said:

 

What about the pensions then?  Wife gets 600 baht/ month!

Yeah, you are 100% correct. The pensions are horrible, for all that have not been holding a government work such as police, teachers, nurse, doctors and so on. Even their pensions are low.

May I ask what your wife was working with? My wife didn´t have a government work either, but she will have insurances that will kick in at the age of 60 and 65. One that is the regular insurance the employer pay for people working, that she has continued to pay herself after quitting work. Another she has been paying herself on the side every month. One will give 300 000 baht as a one time pay out and the other will give 12k per month until she reach the age of 90.

Not that she need it, as she today run her own shop and also starting up another business on the side.

Edited September 10 by Gottfrid

[mfd101]

It's all about productivity. Low wages, low skills, low outputs.

 

Increase wages ... what happens? In Thailand, probably not much except a slightly lower level of participation in the 'formal' economy.

 

As the Vietnamese example demonstrates, the transformation will come when Thailand finally has a C21st education system from 5 years to 25 years old. Should be fine some time in the second half of this century.

[john donson]

see this in makro, a super long time, only 2 registers open and 2 employees chatting here and a couple more there doing nothing... 2 more to give you a useless stamp, you just paid for your good, a security guard, etc...

 

or restaurants or fast food places were in the west, the job would be done by 1 person, max 2, here there are  4-6 ... and most idle or on phone

[john donson]

2 hours ago, watchcat said:

 

What about the pensions then?  Wife gets 600 baht/ month!

 

 

seems fair, you either worked in your life and saved a bit for old age or you watched the rice grow or spend it on useless expensive stuffs for face...

 

look in the west,  50% of your salary goes to social this and that,   21% VAT on top of everything you buy ... 

 

well, 'newcomers' let's call them that, never worked a day, and they will get same pension one day, but social benefits now, free housing, child allocations , minimal wage pocket money for doing nothing...