Wages For Thai Staff - How To Calculate?

[Marvo]

Just a quick Q. regarding paying the employees wages. They work an 8 hour, 5-day week by the way (9:00 - 18:00 with an hour for lunch).

In Europe I was familiar with the system for people who work a regular 5-day week, clocking in and out, getting paid an hourly rate for hours/days worked Monday to Friday, for how ever many hours/days they work.

Now, I'm "told" here in Thailand, the wages (still for a 5-day week) are calculated as the monthly agreed pay figure (e.g. 8,000 baht a month) minus the 5% insurance, then for any working days not actually worked by the employee, 1/30th of that monthly amount is deducted from from their pay packet.

My rut-stuck European brain sees something very wrong here, where staff who work on average 22 days a month, get 1/30th of their monthly wage deducted for a day off. Can some one please advise on correct procedures and options for paying Thai staff.

Cheers,

Marvo

Edited September 5, 2010 by Marvo

[naboo]

Be a good employer. Give them 10 paid sick days a year with a doctor's note. 

[Marvo]

Be a good employer. Give them 10 paid sick days a year with a doctor's note.

...and when staff want to take unpaid leave?

...and how do I calculate overtime rate?

[krading]

Be a good employer. Give them 10 paid sick days a year with a doctor's note.

...and when staff want to take unpaid leave?

...and how do I calculate overtime rate?

How highly do you do you value your staff?

What do they contribute to the success of your business?

How would it affect your business if they left?

Think about that and pay them accordingly.

[Tropicalevo]

Be a good employer. Give them 10 paid sick days a year with a doctor's note.

...and when staff want to take unpaid leave?

...and how do I calculate overtime rate?

How highly do you do you value your staff?

What do they contribute to the success of your business?

How would it affect your business if they left?

Think about that and pay them accordingly.

Listen to this man!

[onnut]

I normaly calculate 26 working days in a month. My staff work 6 days a week by the way in a restaurant. so 8k divided by 26 = 308 baht a day. My staff are happy with that.

[Marvo]

I normaly calculate 26 working days in a month. My staff work 6 days a week by the way in a restaurant. so 8k divided by 26 = 308 baht a day. My staff are happy with that.

That sounds fair onnut. I was concerned about how the staff would take such a suggestion. It would mean a bigger cut if they want/take days off unpaid but would mean more cash for them if they worked OT.

As for krading's advice:

How highly do you do you value your staff?

What do they contribute to the success of your business?

How would it affect your business if they left?

Think about that and pay them accordingly.

I couldn't agree more!

[PattayaParent]

What does the Labour Law say about it?

for example in some countries you have to be paid for your weekend holidays, so say you work 6 days a week you have to be paid for 7, some countries don't.

So if you know how many days you have to pay them, you know what to deduct.

And you should base it on a yearly calculation, not a monthly one as each month you would have to dedcut a different amount (dividing by 31, 30, 28 or 29 days)

[thailandbluegrass]

1) It should go according to the contract you obviously had them sign being such a good employer right?

2) In LOS, salary is paid accourding to Thai Labor Laws = Minumim wage of 220 baht per day. Also they divide the agreed salary from your contract by 30 days. Example 8000 baht per month divided by 30 days = 260 baht per day (or there abouts) There for 1 day off = 260 baht of deduction.

3) Get a copy of the Thai labor Laws.

4) Be as good and fair to them as you can but still keeping the upper hand. I speak from experience employing 20 Thais. You boom boom them they will boom boom you

[gotlost]

Below is a link for wages set by the Thai government to be paid by province. Check with the labour board in your area for an update.

http://www.mondaq.com/article.asp?articleid=92556

[Carib]

Maybe this helps..http://eng.mol.go.th/statistic_01.html

[cardholder]

Below is a link for wages set by the Thai government to be paid by province. Check with the labour board in your area for an update.

http://www.mondaq.co...articleid=92556

Can you deduct the cost of the 3 meals a day ?

[Marvo]

1) It should go according to the contract you obviously had them sign being such a good employer right?

2) In LOS, salary is paid accourding to Thai Labor Laws = Minumim wage of 220 baht per day. Also they divide the agreed salary from your contract by 30 days. Example 8000 baht per month divided by 30 days = 260 baht per day (or there abouts) There for 1 day off = 260 baht of deduction.

3) Get a copy of the Thai labor Laws.

4) Be as good and fair to them as you can but still keeping the upper hand. I speak from experience employing 20 Thais. You boom boom them they will boom boom you

My guys signed up to 8000 baht a month, 5-day week, 9:00 - 18:00 with an hour for lunch, = 22 working days per month avg. (8,000/30 = 260 baht per day - or there abouts).

Wages have just gone up to 10,000 a month to keep the good staff in place.

From a theoretical standpoint, I'm just airing my perception that if one of my guys wants to take 22 days unpaid leave in one month, under Thai employment guidelines, I still have to pay him for 8 days that month - for nothing! Right? OK, a few smart Alecs out there will tell me I should be sacking anyone who takes 22 days leave, but I'm just highlighting the way I'm learning that the system seems to work here in LOS.

[Spoonman]

Why would you have to pay the 8 days, they are not normal work days.

Isn't the Thai working week 48hrs ??

[BillR]

I treat and pay my staff like family, more than double than minimum wage and when we have above average months I pay bonuses. I also pay for their gas and meals. The job they do is very simple, basically attendant/receptionist and I could pay them far less but then Id have to worry about them getting second or better jobs. They also do errands for me outside of their job description such as housework, vehicle registrations, etc.

If they want to go for vacation I do not even keep track of how many days a year they do, as it never seems to be abused. In three years not one has ever taken a sick day. If one goes on vacation the others pick up the slack without me having to ask.

So basically just appreciate your staff and they will appreciate you.

EDIT: As I have only a small business (6 staff) this would not relate to a large enterprise, I imagine.

Edited September 7, 2010 by BillR

[kenallday]

I treat and pay my staff like family, more than double than minimum wage and when we have above average months I pay bonuses. I also pay for their gas and meals. The job they do is very simple, basically attendant/receptionist and I could pay them far less but then Id have to worry about them getting second or better jobs. They also do errands for me outside of their job description such as housework, vehicle registrations, etc.

If they want to go for vacation I do not even keep track of how many days a year they do, as it never seems to be abused. In three years not one has ever taken a sick day. If one goes on vacation the others pick up the slack without me having to ask.

So basically just appreciate your staff and they will appreciate you.

EDIT: As I have only a small business (6 staff) this would not relate to a large enterprise, I imagine.

In my experience pay them what they are worth to you but do not overpay or they will take the piss, keep wages low and hammer them hard if they take days of - If they leave just hire another

[Marvo]

Why would you have to pay the 8 days, they are not normal work days.

Isn't the Thai working week 48hrs ??

That's exactly the anomaly I'm trying to get to grips with. Thai law appears (please advise me) to require me to pay the staff 1/30th of their monthly wage per day, or deduct 1/30th of their monthly wage, per day AWOL from their post, irrespective of whether they work a 7, 6 or 5 day week.

[thailandbluegrass]

Why would you have to pay the 8 days, they are not normal work days.

Isn't the Thai working week 48hrs ??

That's exactly the anomaly I'm trying to get to grips with. Thai law appears (please advise me) to require me to pay the staff 1/30th of their monthly wage per day, or deduct 1/30th of their monthly wage, per day AWOL from their post, irrespective of whether they work a 7, 6 or 5 day week.

This is not quite correct. The law only uses 1/30th as a way to calculate in disputes etc. It does not say that you have to pay them for the days they are not there. If they take 22 days holiday you do not need to pay them the 8 days of weekends off.

Thai labor laws are set up for the workers NOT the employees and they have a great system and it works well.

This is why you need a contract with staff just in case of the worst case scenarios. Normally they are allowed so many sick days off per year with pay, all Thaui public holidays with pay etc. If the are off for more then 3 - 5 consecutive days they wopuld need a doctors note. If they supply this then there is no reason you should be upset. Maybe you could visit them and bring them some food or something nice because THEY ARE SICK.

Like Billr says treat them good and normally you get it back, however also Kenallday replied not to treat them TOO good wich is also true (although I don't agree with the rest he said)

We all know a good accountant is worh their weight in gold but depending on how big your business is it can be a good idea to set one of you're best staff up as Manager and tell them what you want, pay them extra and let them deal with it. Thai's know Thai labor laws.

Our countries could take lessons from the Thai Labor Association really. It'sd a great system

[onnut]

Why would you have to pay the 8 days, they are not normal work days.

Isn't the Thai working week 48hrs ??

That's exactly the anomaly I'm trying to get to grips with. Thai law appears (please advise me) to require me to pay the staff 1/30th of their monthly wage per day, or deduct 1/30th of their monthly wage, per day AWOL from their post, irrespective of whether they work a 7, 6 or 5 day week.

This is not quite correct. The law only uses 1/30th as a way to calculate in disputes etc. It does not say that you have to pay them for the days they are not there. If they take 22 days holiday you do not need to pay them the 8 days of weekends off.

Thai labor laws are set up for the workers NOT the employees and they have a great system and it works well.

This is why you need a contract with staff just in case of the worst case scenarios. Normally they are allowed so many sick days off per year with pay, all Thaui public holidays with pay etc. If the are off for more then 3 - 5 consecutive days they wopuld need a doctors note. If they supply this then there is no reason you should be upset. Maybe you could visit them and bring them some food or something nice because THEY ARE SICK.

Like Billr says treat them good and normally you get it back, however also Kenallday replied not to treat them TOO good wich is also true (although I don't agree with the rest he said)

We all know a good accountant is worh their weight in gold but depending on how big your business is it can be a good idea to set one of you're best staff up as Manager and tell them what you want, pay them extra and let them deal with it. Thai's know Thai labor laws.

Our countries could take lessons from the Thai Labor Association really. It'sd a great system

no its not! I caught a chef stealing, he had stolen 80ks worth from me by ordering extra from the market and signing the invoices. on the invoices it stated 10kg where he only recieved 5kg. this had gone on for a few months before we cottoned on so we got the evidence together and fired him. labour court found him not guilty and awarded him 300 thousand baht. we had the evidence!!!!! its bullshite

anyway, after working and running restaurants here for 7 odd years I now know how to deal with thieving employees. I do not fire them I make them resign.

so the labour system is for the employees not for the employers. even the bad ones.