New Minimum Wage In Chiang Mai

[Paagai]

As I understand it, the basic daily minimum wage in Chiang Mai will increase to 251 Bt per day from 1 April (or about 7650 Bt).

That will put quite a few basic staff's current wages under the limit, even many currently paid more than minimum wage. Source: http://www.mol.go.th/en/employee/interesting_information/6319

Interested to know what effect this will have on business owners here. Is it going to have an effect or has the high season been so great that no one minds paying extra?

[uptheos]

What is the current minimum, how much has it gone up?

[CMSteve]

I would bet that a vast majority of "basic staff" are not making the current minimums as it is. I imagine that there will be some initial upheaval (lot of the faces will change at the shops) but in the end no real difference. If somehow this is enforced, we should see an inflationary jump in prices of local goods and services which , of course, will adversely affect the minimum wage earners harder than any others...

Edited March 5, 2012 by CMSteve

[Paagai]

What is the current minimum, how much has it gone up?

Previous was 171 Bt/day or 5200 Per month so about a 47% increase on the previous rate.

[harrry]

Interesting the extra rates for cooks and other selected people.

[uptheos]

I would bet that a vast majority of "basic staff" are not making the current minimums as it is.

Right on, but I expect a lot of businesses to jump on the bandwagon.

[Semper]

Interested to know what effect this will have on business owners here. Is it going to have an effect or has the high season been so great that no one minds paying extra?

Of course the customers will pay for this, not the business owners.

[KRS1]

Does this wage increase stipulate any worker requirements, education etc...?

[uptheos]

Interested to know what effect this will have on business owners here. Is it going to have an effect or has the high season been so great that no one minds paying extra?

Of course the customers will pay for this, not the business owners.

Cheap Charlies (Business owners)

[Paagai]

Does this wage increase stipulate any worker requirements, education etc...?

AFAIK this is just the basic minimum. There are some higher minimums specified for certain trades/skills but don't know what these are for Chiang Mai.

[harrry]

Does this wage increase stipulate any worker requirements, education etc...?

AFAIK this is just the basic minimum. There are some higher minimums specified for certain trades/skills but don't know what these are for Chiang Mai.

http://www.thaivisa.com/forum/topic/537558-22-jobs-to-be-paid-above-minimum-wage-rates-thailand/page__pid__5102013#entry5102013

but this does not specify a baht amount for CM

[theDukes]

I'm wondering how you came to the about 7650 Baht a month conclusion? Work days in a month are 26, 26 times 251 equals 6526 Baht a month.

6 work days in a week times 251 equals 1506 Baht a week times 52 weeks a year divided by 12 months is 6526 Baht a month.

Don't get me wrong, even 7650 Baht a month is not enough to live on. Just wondering how you came to the 7650 number?

[Paagai]

I'm wondering how you came to the about 7650 Baht a month conclusion? Work days in a month are 26, 26 times 251 equals 6526 Baht a month.

6 work days in a week times 251 equals 1506 Baht a week times 52 weeks a year divided by 12 months is 6526 Baht a month.

Don't get me wrong, even 7650 Baht a month is not enough to live on. Just wondering how you came to the 7650 number?

It was based on what others have told me, but I have no official source to confirm that it's right.

My understanding of the calculation (which I accept may be totally wrong) for previous minimum wage is: 171 Baht times 365 Days divided by 12 months is 5200 per month. Apply the same logic, or the same percentage increase gives 7650. It was explained to me that, under Thai employment law staff get one PAID day off per week, i.e. they are paid for 7 days per week but only work six. Given who explained it to me , this may well not be correct. Confirmation or otherwise would be welcome!

[theDukes]

I've heard it explained that way as well. Usually from Chiang Mai (to make this relevant) staff. According to the Labour Protection Act,

"'Working Day' means a day scheduled for an employee to work regularly.

'Wages of a Working Day' means Wages paid for working fully during normal working times.

'Minimum Wage Rate' means the minimum rate of Wages...'"

Other than that the Act is not specific about how a monthly salary would be caculated or I've missed it.

I've never seen anything in the Labour Protection Act about a paid day off a week. Lots of other rules and regulations about holidays and working on holidays.

I'd like to know if anyone else knows anything about this.

[khunphil]

I would be really interested to read an official translation in English of how it will work. Is it wage or income, what about daily pay and monthly salary, what about tax exemption, what about BOI companies, what about freelance contracts ... I really would like to read it in English.

Yes this will impact customers, for sure, but this will impact employers first, and workers also ...

Minimum wage does not affect only tourism companies .... and believe me, Chiangmai and Lamphun factories are studying the effect and thinking about how to implement this for many weeks or months now.

[SausageKing]

I've heard it explained that way as well. Usually from Chiang Mai (to make this relevant) staff. According to the Labour Protection Act,

"'Working Day' means a day scheduled for an employee to work regularly.

'Wages of a Working Day' means Wages paid for working fully during normal working times.

'Minimum Wage Rate' means the minimum rate of Wages...'"

Other than that the Act is not specific about how a monthly salary would be caculated or I've missed it.

I've never seen anything in the Labour Protection Act about a paid day off a week. Lots of other rules and regulations about holidays and working on holidays.

I'd like to know if anyone else knows anything about this.

We at sk pay 300baht per day and still find near to in possible to get Th?? staff and we have the Thai insurance scheme ???? I just had a advert in a local news paper and we had 0 Th respond to this advert but had 25 falang respond to it ???

[Paagai]

I've heard it explained that way as well. Usually from Chiang Mai (to make this relevant) staff.

One of my sources was Thai staff: hence the Not always known to be reliable!

Other than that the Act is not specific about how a monthly salary would be caculated or I've missed it.

I've never seen anything in the Labour Protection Act about a paid day off a week. Lots of other rules and regulations about holidays and working on holidays.

I'd like to know if anyone else knows anything about this.

The only corroboration I'd seen was (from a translation Of Labour Protection Act. B.E. 2541) :

Section 56. An Employer shall pay Wages to an Employee equivalent to Wage of a Working Day for the following Holidays:

(1) a weekly holiday, except for an Employee who receives Wages calculated on a daily, hourly or piece rate basis;

(2) a traditional holiday; and

(3)annual Holidays.

But, as you point out, there are a myriad of regulations, so I may be stating this out of context, or it may be overridden by something else. Of course, as set out this would only apply to staff paid a fixed monthly salary.

[theDukes]

I've heard it explained that way as well. Usually from Chiang Mai (to make this relevant) staff.

One of my sources was Thai staff: hence the Not always known to be reliable!

Other than that the Act is not specific about how a monthly salary would be caculated or I've missed it.

I've never seen anything in the Labour Protection Act about a paid day off a week. Lots of other rules and regulations about holidays and working on holidays.

I'd like to know if anyone else knows anything about this.

The only corroboration I'd seen was (from a translation Of Labour Protection Act. B.E. 2541) :

Section 56. An Employer shall pay Wages to an Employee equivalent to Wage of a Working Day for the following Holidays:

(1) a weekly holiday, except for an Employee who receives Wages calculated on a daily, hourly or piece rate basis;

(2) a traditional holiday; and

(3)annual Holidays.

But, as you point out, there are a myriad of regulations, so I may be stating this out of context, or it may be overridden by something else. Of course, as set out this would only apply to staff paid a fixed monthly salary.

Interesting. I thought I had read that in there before but I couldn't find it. Sure, it seems that it could be looked at as a paid day off a week if an employee is paid by the month. So on one hand if you pay by the day the minimum monthly total pay would be 6526 Baht and if you pay a monthly salary the minimum monthly pay would be 7530 to 7780 Baht.

Anyone can get an English translation of the labout protection act in the labour office on the second floor or the government buildings in Mae Rim, SW corner.

[khunphil]

Anyone can get an English translation of the labout protection act in the labour office on the second floor or the government buildings in Mae Rim, SW corner.

Noted ... but it could be interesting to put in online on their website.

I love the "The force from April 1, 2012" ... remember me Star Wars ;-)

[BlackArtemis]

I expect to see more hilltribe and Burmese workers so they can continue paying cheap wages.

[bluweyze]

Our local office tells us the monthly minimum wage is 7530 per month i.e. the daily minimum multiplied by 30. The minimum wage also applies to the legal 'Burmese' workers who now have a passport and work permit but of course if you pass near Lotus Tesco in the morning there are a plethora of illegal workers most of whom receive 200 Baht a day and no benefits. It is a large cost increase for employers although I think it is a good idea I would have preferred it to be phased a little more gently. There is also a knock-on effect to employees above the current minimum who will see differentials eroded. It is not as simple as passing the cost on to customers, it is a competitive world but obviously companies will try. I know some of my competitors will just ignore it just as they ignore all holidays including the public ones but it is not an option open to a Western employer; not that i would take it anyway.

[uptheos]

I expect to see more hilltribe and Burmese workers so they can continue paying cheap wages.

And often their English is far superior (Burmese).

[hellodolly]

What is the current minimum, how much has it gone up?

Previous was 171 Bt/day or 5200 Per month so about a 47% increase on the previous rate.

based on a six day work week it will now be 6,526 baht a month

On a five day work week it will be 5,438 baht a month

For a seven day work week it will7,613 baht.

A lot of the self employed in the tourist industries work seven days a week. I wonder how they will be able to reconcile themselves to those wages. Perhaps the government will make up the difference.

[bluweyze]

I expect to see more hilltribe and Burmese workers so they can continue paying cheap wages.

And often their English is far superior (Burmese).

Really?? That must be a result of the wonderful Myanmar education system!

[mic6ard]

It'll be a mess. Right now some of my staff are getting under 6000/mth on basic salary not including benefits etc. Don't forget that increase at the lower level must be mirrored by increase at almost all levels of the organization. Apparently the wage increase would be ignoring the extras and count only the basic income. Which would dramatically increase operation costs. Don't forget most of our stuff in CM is coming from Bangkok where the wage would be 300baht/day!

I might be thinking too much, but the increase in operation costs in BKK is going to lead to increase in prices nation wide. Now don't forget that its 300 in BKK but only around 250 here, operators have to charge the price with 300baht in mind. Talking about a mess.

Cost of living could potentially sky rocket, but the wage here wouldn't rise enough to compensate.

Increase in basic living cost = Decrease in extra expenditures = Bad for business

[mic6ard]

Just crossed my mind, But is it suppose to be an April's Day Joke??? Cos y'know it suppose to start april 1st?

[Lizard2010]

It could be a April fools joke.

If the new rate goes up.

So will everything we pay for.

[bristolgeoff]

we will pay more for drinks etc when that happens

[philw]

It could be a April fools joke.

If the new rate goes up.

So will everything we pay for.

It could be a April fools joke.

If the new rate goes up.

So will everything we pay for.

Oh Dear.................

[OriginalPoster]

we will pay more for drinks etc when that happens

That's not a problem from most CM expats, they'll just take it out of the tip.

Edited March 6, 2012 by OriginalPoster