Abhisit To Announce Wage-Hike Plan

[Lite Beer]

Abhisit to announce wage-hike plan today

By The Nation on Sunday.

Bhum Jai Thai vows to cut VAT from 7% to 5%

Prime Minister Abhisit Vejjajiva will announce a policy today to boost minimum wages by 25 per cent over the next two years, if his party is re-elected to office.

The pledge will be made during a speech he will give to mark Labour Day.

A 25-per-cent hike would mean the minimum wage in Bangkok would rise to more than Bt250 per day from the current Bt216.

"The premier has ordered Labour Minister Chalermchai Sri-on to inform the tripartite central committee on wages to implement this policy at their next meeting," said Buranat Samutarak, the Democrat Party spokesman.

The party yesterday reassured that Abhisit would dissolve the House of Representatives by the end of next week and that an election would be held by the end of June.

Besides the wage hike pledge, Korbsak Sabhavasu, the Democrat Party's top campaign official, will today unveil more details of the party's economic platform for the election.

"He will talk about the details at the Reporters' Association of Thailand, covering the guidelines to help businesses and industries lower their costs, tax reform, measures and incentives to support the wage hike," the spokesman said.

In addition, the premier will today visit construction sites of mass-transit projects in Bangkok. The Democrats also plan to boost farmers' income by 25 per cent through crop-price guarantee schemes.

The party will also pledge a new interest rate and tax breaks for first home-buyers.

Meanwhile, Bhum Jai Thai Party, a key partner of the Abhisit coalition government, has proposed to cut the current 7 per cent value-added tax (VAT) to 5 per cent as one of its key policies for the upcoming election.

Chaovarat Chanweerakul, the party leader and interior minister, said Bhum Jai Thai expected to win 60-70 House seats in the upcoming poll.

"Our proposal to reduce VAT by two percentage points is the major selling point in this election. The tax cut will make the prices of goods cheaper for consumers," Chaovarat said.

Prime Minister Abhisit was expected to dissolve the House of Representatives on May 6, Chaovarat said.

The election would have to be held within 45 days after that, according to electoral laws.

He said the party would unveil its MP candidates after the House was dissolved. Over the past two years, Bhum Jai Thai has controlled key ministries, including Interior, Commerce and Transport.

The opposition Pheu Thai Party, meanwhile, said if it wins the next election it will raise the minimum wage to Bt300 per day and guarantee that fresh college graduates will get a minimum monthly salary of Bt15,000.

In addition, Pheu Thai says it would switch back to using crop-pledging schemes to boost farmers' income.

Chart Pattana Puea Pandin Party also said former deputy commerce minister Goanpot Asvinvichit would lead its economic management team.

The team includes former assistant to Thammasat University rector Montri Thirakotai and Pirom Chantaworn, former dean of Thammasat University's Faculty of Economics.

Goanpot said the party's economic policies would emphasise social stability, people's wealth and a sustainable economy. It would promote sportsmanship and unity of people as well as tourism, agriculture and education.

The party will also grant scholarships for master's and doctoral programmes, while further boosting Thai exports and implementing measures to boost farm prices.

Among its MP candidates are Paradorn Srichaphan, the former tennis rstar, and Olympic medallist Yaowapa Burapolchai.

-- The Nation 2011-05-01

[asiawatcher]

Never heard of populist policies this good! Beats even Thaksin (at this point).

[livinthailandos]

Im sure as elections get under way more false promises will be said along with feel good speeches. Makes no difference at the end of the day as all politicians are only interested in making sure themselves and there buddies are the only ones who benefit.

[blabla1]

Yep,buy them votes mister, give em a 25% rise, then tax them 30%more after the election... :lol:.

[rubl]

Yep,buy them votes mister, give em a 25% rise, then tax them 30%more after the election... :lol:.

Assume THB 300 per day, you get to about 110,000 per year. With some standard deductions and the tax free bracket of 100,000 that means still no need to pay taxes

What to do, what to do

[jimbeam1]

How long has Abhisit been in power? Now he decides to find the gear stick. Hmm where's first.

jb1

[aaacorp]

VAT cut will only be profitable to high incomes....no need to say that a reduction of 2 points is only interesting if you buy cars...high ended products....no need to say who will be happy

[rubl]

VAT cut will only be profitable to high incomes....no need to say that a reduction of 2 points is only interesting if you buy cars...high ended products....no need to say who will be happy

Assuming VAT is put on daily necessities a reduction will help the poor and common people. A higher VAT could be put on luxury items.

[webfact]

Govt urged to raise wages

By The Nation

The government was urged yesterday to raise wages to reflect the real cost of living and throw a safety net to casual and migrant workers.

However, an economist warned that the promise by political parties to boost wages was just a "sweetener" and would stoke inflation, making life actually harder for workers.

Groups of employees led by the Labour Union Federation and Thai Labour Solidarity Committee organised several events to celebrate Labour Day and push for workers' rights.

They called for hiking the minimum wage and revising the salary structure for all professionals.

They also wanted the creation of an unemployment insurance fund to support laid-off workers in case employers do not pay compensation, the provision of legal protection for informal and migrant workers and the annulment of the Public Assembly Act.

Prime Minister Abhisit Vejjajiva in remarks to commemorate Labour Day reiterated that the government would next month boost minimum wages to help workers cope with the rising cost of living.

During the past two years, the government has improved the quality of life for the working class by implementing measures and issuing regulations, such as the one for offices and manufacturers to open day-care centres.

The government last week approved the standard for 11 skilled workers and salaries, which will range from Bt200-Bt500, and pushed for other regulations that will protect workers' rights, he said.

Workers in the informal economy in the past were not covered by the Social Security Fund, but will soon be entitled to social welfare by contributing only Bt70 or Bt100 a month, with the government chipping in. Those who work at home will also be protected under the new law, he added.

Narong Phetprasert, an economics lecturer at Chulalongkorn University, said the government's plan to lift minimum wages would backfire on workers.

"Increasing minimum wages for workers will give employers an excuse to ask the government to increase the prices of their products. This will increase the cost of living for workers, which will be higher than their minimum wages," he said.

The government had already adjusted minimum wages up by Bt9 or about 5 per cent, which led to a climb in commodity prices, which made more trouble for people.

"I think Thais should not rely on politicians. They should get together and make people's proposals to be louder and bigger enough to fight with capitalists, who are now exerting their influence in all political parties," he said.

-- The Nation 2011-05-02