Proposed Thai salary hike for state officials 'may be delayed'

[webfact]

Proposed salary hike for state officials 'may be delayed'
Business Reporters
The Nation

BANGKOK: -- The proposed 8-per-cent hike in state officials' monthly salaries is likely to be implemented only in April 2015 and not in October this year as earlier expected, Finance Ministry permanent secretary Rungson Sriworasat said yesterday.

He added that he had already asked the Comptroller-General's Office to make arrangements for the salary hike.

Earlier, he had said that if talks with the Office did conclude and the relevant law was amended to support the salary increase, the salary hike could be introduced in October.

He made the remark on the sidelines of the FPO Symposium 2014 hosted by the Fiscal Policy Office yesterday.

Fiscal Policy Office director-general Krisda Chinavicharana, said that the Office has already studied the impact of the salary hike. In the case of a salary hike by 1 one per cent - to 7 per cent - additional money would be injected into the economic system through government spending of a total Bt5.8 billion per year, or Bt1.5 billion per quarter. This would boost GDP growth by 0.3 percentage point but would increase inflation to 2.59 per cent from 2.5 per cent. In the case of a 2-per-cent salary hike - to 8 per cent - there would be additional Bt11.6 billion per year injected into the economy or Bt3 billion per quarter, which will boost GDP growth by 0.6 percentage point.

The National Council for Peace and Order plans to raise the salaries of state officials by 7-8 per cent from the current regular hike of 6 per cent per year.

Speaking at the same forum on the topic of fiscal policy, challenge, reform, and sustainability, Kasikornbank chairman and CEO Banthoon Lamsam said the private banking sector wants the government to promote clearer rules and laws to continue to facilitate doing business in Thailand and further create a business-friendly environment. He said the banking sector has been strong, given that banks have already adapted to the intensely competitive market and have learnt valuable lessons from the financial crisis in 1997. One lesson learnt from 1997 is the sector has to give importance to risk management and risk analysis.

Krisda said that the Office aims to turn Thailand into a higher-income country with high competitiveness and also wants to reduce disparities in income distribution.

Sathit Limpongpan, chairman of the Stock Exchange of Thailand, said that the capital market has played a role in reducing the burden on the fiscal budget by facilitating the establishment of infrastructure funds by private and state enterprises when they want to mobilise funds for their project developments. The Electricity Generating Authority of Thailand also has a plan to launch an infrastructure fund.

The SET has encouraged listed firms to adopt the concept of social enterprise, or businesses with high social responsibility.

Kitipong Urapeepatanapong, chairman of the Baker & McKenzie's Bangkok office, said he wants to see faster amendment of crucial laws and the faster completion of new laws, including the reform of some tax laws, to foster Thailand's competitiveness. The tax system should also be used to combat corruption in Thailand.

Currently representatives of the business sector have proposed to the NCPO to amend laws and regulations to reduce obstacles to doing business in Thailand.

Source: http://www.nationmultimedia.com/business/Proposed-salary-hike-for-state-officials-may-be-de-30240426.html

[thenation]2014-08-07[/thenation]

[NongKhaiKid]

Great way to increase staff morale,  announce a potential salary increase and in no time flat it's on hold.

[TimCM]

Great way to increase staff morale,  announce a potential salary increase and in no time flat it's on hold.

 

Aren't we all glad Thailand has moved past the populist unfunded policy announcements of the past government and into a well planned fully funded system of policies 

[chainarong]

Regardless on your opinions on wages paid in Thailand , you must admit that it is piss poor for the majority and whilst it is so, the spending power will remain low, it stands to reason that the more spending power that the population have the more up market they buy, thus the hundred percent wage rise in China over four years , to get the population to buy more expensive items, disposable income for families  in Thailand is at best poor, so leaving this till 2015 (If at all) will not make much difference except to moral, the six Ps come to mind Proper Preparation Prevents Piss Poor Performance, something Thailand lacks at all levels including wages.    

[Pib]

Hey, I'm going to give you a raise soon!  Ain't I great as I'm bringing happiness to you. Go home and tell your family...they'll be happy.

 

A few days later...Wait, wait, the raise may be delayed...let me get back to you.  I hope you didn't mention the possible raise to anyone because there are still approvals to get and details to work out....and I'm sure I mentioned that to you before.

[atsiii]

Who is being talked about here?  Who are "State Officials?"  Does this mean all government workers?  Is the article saying they currently receive a 6% per year raise, and they want to increase that annual raise to 8%?  

[nong38]

It would have been better to have waited with the announcement but how many people does this apply to and where is the money coming from? I do presume they have thought about it and planned ( is that word in the Thai language?) at least part of it. Cant help thinking that this will also hike inflation in someway and as usual its the Thai people on lower incomes who will this the most.

[cacruden]

All wages for military and civilians should be frozen and restricted to rate of inflation increases until the reform process is completed and Thailand returns to civilian rule.  The budget for the military should also have the same restrictions (had significantly higher than the rate of inflation increases after the last coup up until the PTP took power when it power).  As part of the reform package they should implement the concept of having to declare conflicts of interest then removing themselves from the decision process when conflicts do arise.  An HR commission should be created which determines what the private sector salaries / benefits are and set the government wages to be comparable.  The only exceptions to that would be the police (which is probably lower than it should be because all governments just assumed they would make it back through private channels), and teachers.

[Thai at Heart]

Great way to increase staff morale,  announce a potential salary increase and in no time flat it's on hold.

 
Aren't we all glad Thailand has moved past the populist unfunded policy announcements of the past government and into a well planned fully funded system of policies 

Why do state employees merit a pay rise that is double the inflation rate? Wouldn't this money be better served say, subsidising really needy farmers? Edited August 7, 2014 by Thai at Heart

[TimCM]

 

 

Great way to increase staff morale,  announce a potential salary increase and in no time flat it's on hold.

 
Aren't we all glad Thailand has moved past the populist unfunded policy announcements of the past government and into a well planned fully funded system of policies 

Why do state employees merit a pay rise that is double the inflation rate? Wouldn't this money be better served say, subsidising really needy farmers?

 

 

I do not disagree with you in any way. I wish it was too.

 

My point was merely the current trend of announcements without any thought beyond the press conference. It reminds me as an Aussie of Kevin Rudd who wanted to e seen at daily press conferences yet little was done in planning or follow up. 

[NongKhaiKid]

 

 

 

Great way to increase staff morale,  announce a potential salary increase and in no time flat it's on hold.

 
Aren't we all glad Thailand has moved past the populist unfunded policy announcements of the past government and into a well planned fully funded system of policies 

Why do state employees merit a pay rise that is double the inflation rate? Wouldn't this money be better served say, subsidising really needy farmers?

 

 

I do not disagree with you in any way. I wish it was too.

 

My point was merely the current trend of announcements without any thought beyond the press conference. It reminds me as an Aussie of Kevin Rudd who wanted to e seen at daily press conferences yet little was done in planning or follow up. 

 

Exactly right.  Just look at the current confusion over carrying I/D,  instead of a clear cut policy announcement made by a single spokesman too many have wanted their ' 15 minutes ' and have talked at cross purposes.

[thesetat2013]

What they are not telling us is that the pay hike wont physically be given to the government workers until about 2 years after the raise begins. I know many gov workers who are only just now getting paid the proper minimun monthly salary from the last wage increase. Paperworkers move so slow there that the actual increases dont show on a paystub for a very very long time

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

[ginjag]

Well, the military dictatorship needs some money to pay for their pet projects before democracy returns, if ever

 

I wonder if I ever remember anyone else posting a one liner like this ???   oh yes it was from some of the other pro PTP posters. The agenda clan are still there. 

On topic properly------Are these persons government officials  (school teachers-local government workers-post office) or top ranking persons ???  example HEOs??

[stoli]

Most of the people replying to this message who are complaining that everyone should get a raise in pay, just because, will in the near future be complaining that prices have gone up, and they can no longer afford to live here. These same people left their home country because they demanded raises for everyone there, and then could not afford to live there. Unless you have ever had to meet a payroll, using your own cash, instead of just receiving a paycheck magically, it is best if you stay out of adult decisions.

[Mosha]

I don't know if this is a result of the coup, but yesterday at the Amphur's office. The wife handed over 20 Baht for a 10 Baht service. They were going nuts looking for change. The wife is saying Mai Prer. The were saying Mai Chai. Then wife found 10 Baht. They need a raise.

[Thai at Heart]

 

Exactly right.  Just look at the current confusion over carrying I/D,  instead of a clear cut policy announcement made by a single spokesman too many have wanted their ' 15 minutes ' and have talked at cross purposes.

 

 

 

 

Its always been like that.  The pooyai speaks and everyone must listen, even when what he comes up with is utter stupidity.

[maewang99]

Teachers should get even more benefits and a bigger increase.  They have done an excellent job.  They may even have exceeded their mission.  So they should be rewarded extra, don't you agree?