Inflation will rise slightly after increasing Thai civil service salaries

[webfact]

Inflation will rise slightly after increasing civil service salaries
By Digital Content



BANGKOK, Aug 8 -- Thailand's Commerce Ministry said Friday a plan to increase salaries of civil servants by 8 per cent, expected to start in 2015, would impact inflation in the country only 0.05 per cent, said Ampawan Pichalai, director of Commerce Ministry’s Trade Policy and Strategy Office.

Ms Ampawan said inflation in Thailand would be affected marginally after the increase because Thailand’s economy has still not fully recovered while goods production is still not at full capacity and bank interest rates remain unchanged.

She argued that the increase in civil servants’ salaries would help boost consumers’ purchasing power and simultaneously assist in helping the country'sd economy recover faster.

It is forecast that inflation during the second half of this year would stand between 2.4-2.5 per cent. (MCOT online news)

[tna]2014-08-08[/tna]

[CiaranO]

hmmmm so lets increase the corrupt civil servants salaries just a little but more. 

[Thai at Heart]

IN which case, why not give them 10%?

 

lol.....

[apetley]

I wonder if the 300bht minimum wage will be subject to the 8% rise too?

[klauskunkel]

 

Inflation will rise slightly after increasing civil service salaries

and what happens to inflation if the salaries were decreased?

[klauskunkel]

I wonder if the 300bht minimum wage will be subject to the 8% rise too?

officials on minimum wage? Where?

[soalbundy]

does the tea money get reduced now ?

[HUAHIN62]

Wishfull thinking that if you increase wages it will stimulate the economy. What if they use the extra money to pay off debt or save the money instead of spending it? The other fact is that the B 20 billion increase in salaries even if is spend in full will be a drop in the ocean compared to the loss of income from lost tourists.Just another attempt to justify the increase thats 3 times the official inflation rate.

[apetley]

I wonder if the 300bht minimum wage will be subject to the 8% rise too?

officials on minimum wage? Where?

I was talking about the national minimum wage of 300bht a day.
For information some of my wifes friends work in a Govt office in Kanchanaburi. They are paid between 8000 and 9000bht per month.

[JacChang]

Inflation up 0.05%

 

But economy? Economy better increase more than 0.05%. Hope it's higher than that or else it's a useless policy again.

 

The problem with this is, inflation affects us all. But civil servants increase in salary, should help them increase consumer spending. We ask ourselves, what % of the working population are civil servants? 5%? 1%? Or less? Maybe someone can provide real numbers. If the number is less than 1%, we could barely improve economy by 0.08%. Hope they actually do some research and analysis instead of just raising people's wealth by raising wages. It just does not work that way...... when will they learn.

[Thai at Heart]

Inflation up 0.05%
 
But economy? Economy better increase more than 0.05%. Hope it's higher than that or else it's a useless policy again.
 
The problem with this is, inflation affects us all. But civil servants increase in salary, should help them increase consumer spending. We ask ourselves, what % of the working population are civil servants? 5%? 1%? Or less? Maybe someone can provide real numbers. If the number is less than 1%, we could barely improve economy by 0.08%. Hope they actually do some research and analysis instead of just raising people's wealth by raising wages. It just does not work that way...... when will they learn.

The only reason for them to talk like this is to try to justify a blatently populist pay rise.

The money could have been used for anything at all. So why give it, in such large percentage to a part of society which is obviously not destitute or impoverished. It is vote buying, but it might only increase inflation a little bit so its ok.

[apetley]

Inflation up 0.05%
 
But economy? Economy better increase more than 0.05%. Hope it's higher than that or else it's a useless policy again.
 
The problem with this is, inflation affects us all. But civil servants increase in salary, should help them increase consumer spending. We ask ourselves, what % of the working population are civil servants? 5%? 1%? Or less? Maybe someone can provide real numbers. If the number is less than 1%, we could barely improve economy by 0.08%. Hope they actually do some research and analysis instead of just raising people's wealth by raising wages. It just does not work that way...... when will they learn.

http://www.ocsc.go.th/ocsc/en/index.php?option=com_content&view=article&id=109:overview-hrm&catid=51&Itemid=248

Just over 1.1 million civil servants according to this Govt link.

[JacChang]

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Inflation up 0.05%
 
But economy? Economy better increase more than 0.05%. Hope it's higher than that or else it's a useless policy again.
 
The problem with this is, inflation affects us all. But civil servants increase in salary, should help them increase consumer spending. We ask ourselves, what % of the working population are civil servants? 5%? 1%? Or less? Maybe someone can provide real numbers. If the number is less than 1%, we could barely improve economy by 0.08%. Hope they actually do some research and analysis instead of just raising people's wealth by raising wages. It just does not work that way...... when will they learn.

http://www.ocsc.go.th/ocsc/en/index.php?option=com_content&view=article&id=109:overview-hrm&catid=51&Itemid=248

Just over 1.1 million civil servants according to this Govt link.

 

67 million people. 72% of population working. = 48 million workers in total.

 

so 2.3% of total work force gets a rise of 8% in wages.

 

Looking good

0.05% inflation for a rise of max 0.184% improvement in consumer spending.

 

Inflation up 0.05%
 
But economy? Economy better increase more than 0.05%. Hope it's higher than that or else it's a useless policy again.
 
The problem with this is, inflation affects us all. But civil servants increase in salary, should help them increase consumer spending. We ask ourselves, what % of the working population are civil servants? 5%? 1%? Or less? Maybe someone can provide real numbers. If the number is less than 1%, we could barely improve economy by 0.08%. Hope they actually do some research and analysis instead of just raising people's wealth by raising wages. It just does not work that way...... when will they learn.

The only reason for them to talk like this is to try to justify a blatently populist pay rise.

The money could have been used for anything at all. So why give it, in such large percentage to a part of society which is obviously not destitute or impoverished. It is vote buying, but it might only increase inflation a little bit so its ok.

 

 

Exactly. It's more political than meets the eye. With the two sided politics going on, I'm pretty sure the civil servants are half half. Well, like they say in Thailand, money works wonders! All civil servants will be having lunch together, discussing about their recent raise, happy and holding hands.