Minimum Wage: Thai Govt Plans To Be Clear By October

[webfact]

MINIMUM WAGE

Govt plans to be clear by October

By The Nation

Labour Ministry official ready to consider staggered raise over 34 years

How the government will implement its policy to raise the daily minimum wage to Bt300 will become clear by October, Labour Ministry permanent secretary Somkiat Chayasriwong said yesterday.

The top official did not rule out a request by the Federation of Thai Industries (FTI) to gradually lift the minimum wage step by step over three to four years.

"We are ready to listen to all sides," Somkiat said.

The Labour Ministry, he added, was now surveying wage rates across the country.

Somkiat said the Department of Skill Development (DSD), in the meantime, had been instructed to promote skill training by offering eServices to interested employers.

He said improved skills would make workers well qualified for a daily wage of at least Bt300.

At present, laws encourage employers to provide training for their workers/employees by giving tax benefits. Employers should be able to claim tax deductions of an amount two times of the training cost. However, due to complicated procedures, some employers have not organised the training, paying fines to the Skill Development Fund instead.

"To simplify procedures to claim tax deductions as part of training costs, the DSD will launch eServices on September 8," Somkiat said.

He said employers could also check out useful training courses at www.dsd.go.th, and register the courses they were going to provide to their employees/workers via the web site.

Jiyuan Wang, the International Labour Organisation's country office director for Thailand, Cambodia and Lao People's Democratic Republic, downplayed any concern that rising wages would worsen inflation.

He said it was inflation that was now putting pressure for higher wages.

He said Thailand's daily minimum wage had clearly not risen in line with the country's inflation rate during the past decade.

In 1995, wages accounted for 72 per cent of the country's total income. By 2006, they accounted for just 63 per cent of total income.

Wang also pointed out that the Gini coefficient of Thailand, a measure of inequality of income or wealth, was the highest in Asia.

"It's at 0.43," he said.

According to Wikipedia, Gini coefficients for income ranged from around 0.23 (Sweden) to 0.70 (Namibia) although not every country has been assessed.

Wang said although some economic sectors would offer less job opportunities if the minimum daily wage rose, workers would still be able to switch to other economic sectors.

"Higher wages will mean higher consumption. It will stimulate the country's economy too," he said.

-- The Nation 2011-08-19

[Buchholz]

Labour Ministry official ready to consider staggered raise over 34 years

The slow turtle wins the race. Wonder what the exchange rate will be then.

[Siripon]

Yesterday Mr Kittirat, the Commerce Minister, said the 300 baht rate will not apply to the private sector.

There's going to be a lot of disappointed Pheua Thai voters.

[siampolee]

Yesterday Mr Kittirat, the Commerce Minister, said the 300 baht rate will not apply to the private sector.

There's going to be a lot of disappointed Pheua Thai voters.

Somchai and Porntip boasted " we voted for .P.T.P. as they are going to make us rich in six months."

Edited August 19, 2011 by siampolee

[Colin Yai]

Yesterday Mr Kittirat, the Commerce Minister, said the 300 baht rate will not apply to the private sector.

There's going to be a lot of disappointed Pheua Thai voters.

HMM, how nice and cosy ,so only public sector workers will get the increase now ,it gets better by the day ,mind you this administration has got to get its priority's right ,like getting compensation for the Red shirts and of course the top one of all,come back dear Brother all is forgiven,LOL.

[Colin Yai]

Yesterday Mr Kittirat, the Commerce Minister, said the 300 baht rate will not apply to the private sector.

There's going to be a lot of disappointed Pheua Thai voters.

Somchai and Porntip boasted " we voted for .P.T.P. as they are going to make us rich in six months."

I just wonder when it dawns on the electorate that they have well and truly had their noses rubbed in the shit!,LOL.

[whybother]

The Labour Ministry, he added, was now surveying wage rates across the country.

Here, maybe this will save them some time.

Thailand minimum wage rates

[Colin Yai]

The Labour Ministry, he added, was now surveying wage rates across the country.

Here, maybe this will save them some time.

Thailand minimum wage rates

Right WB ,I have surveyed them which took me all of 5 minutes , can we now go on to stage 2 or will it take those in the corridors of power 6 months which could be done in minutes,LOL.

[Buchholz]

Govt plans to be clear by October

A continuation of the clown show...

They have to study it first... before they can become clear about it in two months...

george has just posted a new status update.

======================================================================

PM orders study into increasing daily minimum wage to Bt300 and Bt15,000 starting salary for new graduates in civil sector /TANN

======================================================================

Announce policies as an integral campaign platform, promote it, publicize it, push it... and THEN...

study it.

the clown show marches on.

.

[Phatcharanan]

LOL!! You couldn't make it up could you?

[Thai at Heart]

Yesterday Mr Kittirat, the Commerce Minister, said the 300 baht rate will not apply to the private sector.

There's going to be a lot of disappointed Pheua Thai voters.

I would imagine that some quick witted PTP guy will challenge that as discriminatory under the constitution. If they don't go through with this policy, they will be political toast.

[metisdead]

A post has been removed due to possible violation of copyright and non compliance of fair use. It is generally accepted, but not written into law, that quoting the first two or three sentences of an article and giving a link to the source is considered “fair use” and not a violation of copyright.

[davejonesbkk]

love how he just snuck in that line about it not covering the private sector, hoping no one will notice I bet. That is pretty HUGE news actually....

[nong38]

When all the farmers, sole traders and family businesses who voted fro the current govt realize that the minimum wage will/did not apply to them they will have a rude awakening, with prices rising to pay for those that the new improved daily wage will affect some voters are going to see how they have been misled. I seem to remember seeing some ladies in Khon Kaen during the election bragging that they understood about politics now and how decide things for themselves, now the penny had dropped. How long before we get unrest? Will these duped people wait 4 years? Interesting times a head.

[YellowFeverCAD]

love how he just snuck in that line about it not covering the private sector, hoping no one will notice I bet. That is pretty HUGE news actually....

It is in fact huge news and great news for those that own businesses in Thailand it's nice to see that we won't be forced to either pay people a wage they simply do not earn or have to layoff staff to meet a gov't imposed election promise with no grounding in economic reality.

I wonder where all the Red shirt supporters are saying how this is the right thing to do and this is what PTP meant all along and others just misunderstood...

Good god this country is a mess, was it always this big a mess I've only been here for about five years and what a massive cluster <deleted> it's been in that time.

[hammered]

PTP have to deliver on this. Lets await the actual policy statement when things will be formally announced. Im pretty sure 34 years was meant to be 3-4 years so if they cant even report the period correctly what chance some of the other information isnt accurate too. It is also a stement by a civil servant talking about policy that isnt even formulated in its entirety yet

[YellowFeverCAD]

PTP have to deliver on this. Lets await the actual policy statement when things will be formally announced. Im pretty sure 34 years was meant to be 3-4 years so if they cant even report the period correctly what chance some of the other information isnt accurate too. It is also a stement by a civil servant talking about policy that isnt even formulated in its entirety yet

For someone with so many posts I would have assumed you actually live here and don't just vacation here. If so I am shocked that you think ANY gov't HAS TO deliver on anything. They do what they want to get elected and then what they want again once in power even if it is 100% the opposite of what was promised.

This policy is now shaping up to be exactly as a long time resident would have guessed... they say it will be across the board, gets everyone excited and out to vote.. for them of course. Then they talk about how maybe they can't do it right away.. and just in certain areas.. then they say things are in much worse shape than they thought financially (odd of course because during they election they know everything they said it would be a breeze to implement all this crap) now they are talking about it taking 3 - 4 years and of of course the fact that it will NOT be imposed on the private sector... par for the course.. sort of like the 15,000 for all new grads.. then just gov't new hires, then umm gov't new hires but NOT teachers... it really is exactly as expected...

[OzMick]

When all the farmers, sole traders and family businesses who voted fro the current govt realize that the minimum wage will/did not apply to them they will have a rude awakening, with prices rising to pay for those that the new improved daily wage will affect some voters are going to see how they have been misled. I seem to remember seeing some ladies in Khon Kaen during the election bragging that they understood about politics now and how decide things for themselves, now the penny had dropped. How long before we get unrest? Will these duped people wait 4 years? Interesting times a head.

The minimum wage is paid to employees - I don't see how it applies to "farmers, sole traders and family businesses" unless their operation is large enough to employ others, and most of those seem opposed to the rise.

[lovelomsak]

It will be interesting to see how it is implemented. My thoughts on it when it was just an election promise was, It had good and bad features.

The good part is more money for more people and things improve for many poor. The other thing i thought was it will probably mostly be in manufacturing and industry where this will be done. Thus young people will leave the farm and farms will stop being small family projects to being owned by large companies. New area for old money to take control.

300 baht a day is still very cheap labour for industry, on the international scale.. Also this wage will provide income for workers to support their own industries by allowing them to be consumers.Thailand will become less dependent to foreign trade. It will develop a more domestic base for consumers goods produced in Thailand.

It is very good for Thailands economy and trade. It also will help support the plan to give housing and vehicles at low or no interest rates to the new working class.These new plans working together offer much to Thailand as a whole in the near future and in the long forecast future.

So I just hope this is where we are headed.

[whybother]

It will be interesting to see how it is implemented. My thoughts on it when it was just an election promise was, It had good and bad features.

The good part is more money for more people and things improve for many poor. The other thing i thought was it will probably mostly be in manufacturing and industry where this will be done. Thus young people will leave the farm and farms will stop being small family projects to being owned by large companies. New area for old money to take control.

300 baht a day is still very cheap labour for industry, on the international scale.. Also this wage will provide income for workers to support their own industries by allowing them to be consumers.Thailand will become less dependent to foreign trade. It will develop a more domestic base for consumers goods produced in Thailand.

It is very good for Thailands economy and trade. It also will help support the plan to give housing and vehicles at low or no interest rates to the new working class.These new plans working together offer much to Thailand as a whole in the near future and in the long forecast future.

So I just hope this is where we are headed.

A couple of the bad features are the effect on inflation and unemployment.

[rubl]

OP:

Labour Ministry official ready to consider staggered raise over 34 years

How the government will implement its policy to raise the daily minimum wage to Bt300 will become clear by October, Labour Ministry permanent secretary Somkiat Chayasriwong said yesterday.

The daily minimum wage varies from 159 - 221. The current government moved from campaign promise 'minimum 300B/d now' to 'considering staggered raise over 3 to 4 years'. Well as someone said before 'those were just campaign promises'

Makes you wonder what would have happened with the Dem's campaign promise of 25% raise over two years. Maybe that would have been implemented without much ado ?

[tlansford]

Yesterday Mr Kittirat, the Commerce Minister, said the 300 baht rate will not apply to the private sector.

There's going to be a lot of disappointed Pheua Thai voters.

I have not seen this news (that the min-wage will not apply to the private sector), but I have seen the exact opposite stated many times over... yesterday, and today.

It seems that the minimum wage hike is for public and private sectors both.

[dcutman]

OP:

Labour Ministry official ready to consider staggered raise over 34 years

How the government will implement its policy to raise the daily minimum wage to Bt300 will become clear by October, Labour Ministry permanent secretary Somkiat Chayasriwong said yesterday.

The daily minimum wage varies from 159 - 221. The current government moved from campaign promise 'minimum 300B/d now' to 'considering staggered raise over 3 to 4 years'. Well as someone said before 'those were just campaign promises'

Makes you wonder what would have happened with the Dem's campaign promise of 25% raise over two years. Maybe that would have been implemented without much ado ?

It is also funny how the rest of this PTP wage promice is not discussed at all. Maybe that 34 year time frame is accurate

PUEA THAI PARTY

Policy pledges include:

- Guarantee a uniform daily minimum wage of 300 baht ($10) throughout the country; this would rise to 1,000 baht by 2020.

[OzMick]

"Energy Minister Mr Pichai said his ministry will suspend collecting levies on premium petrol (benzene 95), regular petrol (benzene 91) and diesel for no more than one year.

The policy will be implemented immediately after the government delivers its policy statement before parliament.

However, reducing Oil Fund subsidies will cost the state about 3 billion baht a month ...................... issuing government bonds to subsidise the prices of LPG and CNG,

This would bring down the price of premium petrol (benzene 95) by 7.5 baht a litre, regular petrol (benzene 91) by 6.7 baht and diesel by 2.2 baht.

Mr Pichai said the Oil Fund will begin to collect fuel levies again when the public is earning better incomes as a result of the government’s economic policies."

Interesting - go into debt by about B36 billion to give a fuel price cut mainly to wealthier vehicle owners. Sounds like a Marxist economic idea to me; Groucho not Karl. It will be reversed "when the public is earning better incomes as a result of the government’s economic policies." Might be a long wait.

[rubl]

Yesterday Mr Kittirat, the Commerce Minister, said the 300 baht rate will not apply to the private sector.

There's going to be a lot of disappointed Pheua Thai voters.

I have not seen this news (that the min-wage will not apply to the private sector), but I have seen the exact opposite stated many times over... yesterday, and today.

It seems that the minimum wage hike is for public and private sectors both.

I was wondering and it took awhile to check and find a reference. It seems that on the 18th (maybe before meeting with the private sector):

"Mr Kittiratt said the government would not try to force the private sector to comply with the wage hike policy. The government would take the lead by increasing the minimum wage for workers of state enterprises and employees of state agencies."

[Maestro]

A nonsensical post blaming a political party for an online newspaper's error in not displaying an en-dash and the replies to it have been deleted. Write to the publication in question if this makes you lose sleep.

[OzMick]

Yesterday Mr Kittirat, the Commerce Minister, said the 300 baht rate will not apply to the private sector.

There's going to be a lot of disappointed Pheua Thai voters.

I have not seen this news (that the min-wage will not apply to the private sector), but I have seen the exact opposite stated many times over... yesterday, and today.

It seems that the minimum wage hike is for public and private sectors both.

Wrong again - becoming a habit.

[OzMick]

OP:

Labour Ministry official ready to consider staggered raise over 34 years

How the government will implement its policy to raise the daily minimum wage to Bt300 will become clear by October, Labour Ministry permanent secretary Somkiat Chayasriwong said yesterday.

The daily minimum wage varies from 159 - 221. The current government moved from campaign promise 'minimum 300B/d now' to 'considering staggered raise over 3 to 4 years'. Well as someone said before 'those were just campaign promises'

Makes you wonder what would have happened with the Dem's campaign promise of 25% raise over two years. Maybe that would have been implemented without much ado ?

It is also funny how the rest of this PTP wage promice is not discussed at all. Maybe that 34 year time frame is accurate

PUEA THAI PARTY

Policy pledges include:

- Guarantee a uniform daily minimum wage of 300 baht ($10) throughout the country; this would rise to 1,000 baht by 2020.

The government has offices through-out the country, govt officers wear uniforms. You have to read the fine print, or the space where it will be inserted later.

Edited August 20, 2011 by OzMick

[nong38]

When all the farmers, sole traders and family businesses who voted fro the current govt realize that the minimum wage will/did not apply to them they will have a rude awakening, with prices rising to pay for those that the new improved daily wage will affect some voters are going to see how they have been misled. I seem to remember seeing some ladies in Khon Kaen during the election bragging that they understood about politics now and how decide things for themselves, now the penny had dropped. How long before we get unrest? Will these duped people wait 4 years? Interesting times a head.

The minimum wage is paid to employees - I don't see how it applies to "farmers, sole traders and family businesses" unless their operation is large enough to employ others, and most of those seem opposed to the rise.

Exactly, but do think the people who voted for the current lot thought that? I think they thought they, the poor people were going to suddenly be getting 300 bts day from somewhere, we know that was not the case, but did they? I think not. Whats the difference between a farmer, a sole street trader and a worker for a company?

[whybother]

...

Whats the difference between a farmer, a sole street trader and a worker for a company?

A farmer and a sole street trader are effectively in control of what they get paid. In some ways they are the same, as they could pay themselves 300 baht per day, but then they would have to increase their prices and maybe even go out of business.