Wage hike measures to be proposed

The Nation

BANGKOK: -- The Labour Ministry will propose that the government help the business sector pay the difference between the old wage rate and the new Bt300 minimum wage for three years, labour permanent secretary Dr Somkiat Chayasriwong said yesterday.

Five new measures will be proposed at Friday's meeting of the committee on alleviating the impact of the nationwide Bt300 minimum wage, which is chaired by Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong.

The measures include hotel and accommodation fee discounts for small and medium-sized enterprises (SMEs); labour-skills development mobile clinics; an increase in the expense allowance for seminars; and the arrangement of low-priced product caravans for workers at business establishments.

Under the assistance plan, the government would pay 75 per cent of the difference between the old and new wage rate in 2013, 50 per cent in 2014 and 25 per cent in 2015, Somkiat said.

There are some 300,000 SMEs paying social security distribution in the 70 provinces where the new minimum wage will come into effect on January 1, meaning the government would have to pay Bt50 billion to make up the difference. Details of the payment process and method remained unclear.

-- The Nation 2012-12-12

are they being remotely serious?

they have a tax cut already. if that isn't enough, nothing ever will be.

are they being remotely serious?

they have a tax cut already. if that isn't enough, nothing ever will be.

Can you think of a better way to funnel more taxpayer money, to friends, family, and their own SME's.

Within the first week of power Chalerm and Thaksins Government (and Yinluck popped her nose in it too) slashed the coperate tax rate for these companies. Seems so long ago they have forgotten.

Inflation over the last year would have already eaten up any pay rise.

Do you ever feel you are watching "Faulty Towers" when reading this shit?

There are some 300,000 SMEs paying social security distribution in the 70 provinces where the new minimum wage will come into effect on January 1, meaning the government would have to pay Bt50 billion to make up the difference. Details of the payment process and method remained unclear.

Thaksinomics = keep poor people happy while I rape the country.

The rich get richer & the poor get poorer.. another shinning example of poorly thought out policies.

I'm all for the bottom end getting a wage rise but within the Thai system it's not affordable by the owners who wish to reap all the rewards.

Almost eighteen months ago, the brand-new government slashed corporate-tax, to help the companies pay for the pay-rise which should now shortly be received, at least by those workers who are employees, rather than self-employed.

Meanwhile inflation has seriously eroded the value of the vote-getting election-winning promise, but never mind that, it just makes the pre-election promises next time more-effective to the voters.

But why is a populist-government now wanting to help pay for the pay-rise, for a second time, whose side are they on ? The workers, or their friends the employers, who help deliver the vote and fund the campaigns ? Don't they have any better use than this, for public-funds ?

Almost eighteen months ago, the brand-new government slashed corporate-tax, to help the companies pay for the pay-rise which should now shortly be received, at least by those workers who are employees, rather than self-employed.

Meanwhile inflation has seriously eroded the value of the vote-getting election-winning promise, but never mind that, it just makes the pre-election promises next time more-effective to the voters.

But why is a populist-government now wanting to help pay for the pay-rise, for a second time, whose side are they on ? The workers, or their friends the employers, who help deliver the vote and fund the campaigns ? Don't they have any better use than this, for public-funds ?

They are not on the side of the working class of Thailand and will never be.

I don't get it. Why don't they tangibly work out the effects before they pre-empt the implementation? It's all very well and good for the companies to come and bitch, but they haven't even implemented it yet.

http://www.mol.go.th/en/anonymouse/molduties

I can see a lot of statements that it is supposed to monitor the implementation of policies, and formulate ideas in this statement. But what I can't see is that it is meant to try to alleviate changes to the law in the benefit of employers. Reportedly, there is virtually NO unemployment in the country, so instead of pre-emptively challenging a law, why don't they give it 6 months.

I know for a fact that companies up where I am based are already paying more than the minimum, and are crying out for labour.

There is also one massive employer in town that employs almost exclusively Burmese labour, presumably at below minimum. This issue has to be the most ridiculous avoidance of the law to the detriment of Thai labour and encouragement in investment. If you are simply able to circumvent the law and employ boat loads of imported labour at less than minimum, what on earth is the point in the law? Essentially you create two markets, to the complete detriment of those Thai's who are willing or want to work for the minimum wage.

They have had their tax cut, now put up and shut up, pay the wages.

There's currently a huge labour shortage that means the market is driving up wage rates higher than minimum rates anyway.

A Thai friend runs an employment agency in Ayhuddya where contract assembly-line workers are being offered jobs at up to 19,000 baht per month in the larger international factories.

Within the first week of power Chalerm and Thaksins Government (and Yinluck popped her nose in it too) slashed the coperate tax rate for these companies. Seems so long ago they have forgotten.

Inflation over the last year would have already eaten up any pay rise.

Do you ever feel you are watching "Faulty Towers" when reading this shit?

Fawlty Towers was a comedy this is the real world, sadly but you know what Basil Fawlty for PM would be good, with Manuel Minister for Tourism and Road side Restaurants.

slashing tax from 30% to 23%, yeah that helps... 7% tax decrease, 25% wage hike (or there about - CM went from 179 to 251) Make sense to you??? So please don't mention slashing taxes when our cost went way beyond that.

Sorry for the ignorant question, is the minimum wage a monthly salary? 300 baht per month? Just trying to understand the system. Thanks!

Sorry for the ignorant question, is the minimum wage a monthly salary? 300 baht per month? Just trying to understand the system. Thanks!

300 thb a day.

How about a new tax on the increased wages? This tax money would be funneled directly back to the employers. Forgive me...I'm just trying to think like a Thai politician.

'Twould seem as if the financial expert currently advising this current maladministration is none other than that infamous financial genius Berni Madhoff.

Edited December 12, 201213 yr by siampolee

Businesses will always grumble about what they have to pay

their workers, They should try and live on what they are paying

their workers for a few months, (if they could),

Greed and profit seem to run the World now and thats a pity.

regards Worgeordie

are they being remotely serious?

they have a tax cut already. if that isn't enough, nothing ever will be.

Call these gifts. There are may different ways to buy vote

The Labour Ministry will propose that the government help the business sector pay the difference between the old wage rate and the new Bt300 minimum wage for three years, labour permanent secretary Dr Somkiat Chayasriwong said yesterday.

The very first policy implemented about September 2011 was a reduction of the Corporate Tax rate from 30% to 23% or so. In part to promote competiveness, in part to offset higher minimum wages which would come. Now a ministry proposes the government spent some more taxpayer's money? Planning, strategy, proper insight?

Funnily enough one of our dear departed members insisted that companies which couldn't pay the wage increase didn't have a right to exist anyway.

Edited December 12, 201213 yr by rubl

slashing tax from 30% to 23%, yeah that helps... 7% tax decrease, 25% wage hike (or there about - CM went from 179 to 251) Make sense to you??? So please don't mention slashing taxes when our cost went way beyond that.

Are labour-costs the only costs you have, or are they merely one component of your overall-costs, in which case a 25% wage hike doesn't mean a 25% increase in total-costs, does it ?

And would you not agree that the tax-cut was 17-months-ago, whereas the wage-hike came much later, indeed some has yet to come next month ? So what about the extra profit made meanwhile ?

This isn't to say, that I believe a minimum-wage is necessarily a good thing, just that it's possible to be too simplistic in equating 7% (eventually promised to be 10% tax-cut) directly, with the increase in universal minimum-wage which was the 'pre-election promise'.