Minimum wage could be different in some parts of Thailand next year

[nahkit]

Such a proposal by the Shinawatra clan would never have won them any votes.

It is actually not a bad idea.

logically you would expect higher rates in Bangkok, other cities and tourist areas, but it could also be used to reverse migration from the villages to the more prosperous areas.

Was that said tongue in cheek or are you really unaware that there were different regional rates in effect during their time in control?

[kingstonkid]

So does that mean an Issan construction worker working on a project in Bkk will be paid more than working on a similar project in Chang Mai??

This is all about putting more money in the Thai elites pockets, more profits for the big companies and driving the rural and working class back into poverty.

Actually it is a great way for the government to make more money. I would assume that the tax rates will stay the same so that while a Thai in BKK may make more money than a Thai in Isaan they would also pay more taxes.

Keeping the 300 as a base and then raising the rate in other major cities will cause a few shops to close but it may help people living in BKK unfortunatley it is also going to increase the number of Isaan that see the big bucks and come here to find that it is not all that great. I imagine that it will not make a lot of difference for large companies.

[Soutpeel]

What a ridiculous idea, the junta strikes again.

According to the committee, the Labor Protection Act B.E. 2541 authorizes it to make the minimum wage different from one area to another.

The junta didn't write the labor protection act B.E. 2541....so nice try my little Thaksinite but no cigar..

[micmichd]

Not a good idea to give up lawmaking because laws might be broken or evaded.

Relocating production to surrounding countries is only a possible solution for one economic sector, and not even a good one. Qualifications might be lower in neighbouring countries.

Most of the service sector jobs must be kept in the location where the customers are, and the same holds true for the agrarian sector, building construction etc.

It's certainly true that some immigrant workers are afraid lose their jobs if they complain.

Then Thailand should have whistleblower protection laws for the ones that tell.

[soalbundy]

It all seems quite straightforward to me.

There is a minimum wage of 300baht/day. If you work in small towns -for example in Isaan -that is what you can expect to get if basically non skilled. If you do the same job in cities where the cost of living is appreciably higher than Isaan towns (ie Bangkok, Phuket, Pattaya Chiang Mai), then clearly you need more money just to be on an equal to those in Isaan. (Higher rent, more expensive food, transport costs etc). Either you give them a higher minmum wage, or a cost of living allowance to balance the books. Done all over the civilised world!

If employers dont pay sufficient, they will not attract the employees!

QED.

my missus looked for some work to get some extra pin money ( Isaan ) she asked what the rate was for maids at a Thai run resort, lots of farang staying there, the rate was 100 Baht a day, i kid you not.

[casualbiker]

The minimum wage issue is a complicated one.

That there should be a minimum wage is obvious, as a legal base to avoid blatant exploitation. Does it eradicate exploitation ? No, because a legal base is effective only when the exploited person lodges a complaint.

Thus the minimum wage system tends to have a perverse effect as it encourages employers to hire illegal workers, when/ and wherever possible. Unfortunately, for a variety of reasons (corruption being number one of course), it is possible in many places. Hence the near-slavery situation in some sectors, which is now difficult to eradicate even with a government who earnestly wants to do it.

As for creating a different minimum wage depending upon the region, it's typically the kind of measure that looks good on paper, but 'on site' is likely to cause all kinds of headaches, abuses, and adverse side-effects.

It reminds me of an absurd joke I heard years ago : the Minister of Transport in some imaginary state where cars drive on the right hand side decides, after much consultation with lots of expensive experts, that driving on the left side would be safer. But because the experts are not in total agreement on this, he comes up with this brilliant solution : "OK guys, here's what we're going to do : for one month, as a test, cars will drive on the left hand side. If it does prove safer, then trucks will follow suit."

My point, before anyone asks, is that complicated regulations are not the answer to economic loopholes, malfunctions and malpractice. Usually they just make it worse.

There has been a minimum wage in Thailand for 17 years as referenced in the op. Previous to Yinglucks 300b for everyone. The minimum wage did vary from province to province. And there were also yearly increases of between 3 and 6%.

2010 minimum wages here ; http://www.mondaq.com/x/92556/employee+rights+labour+relations/New+Minimum+Daily+Wage+Increase+in+Thailand

[micmichd]

So, it's Farangs that take advantage of dumping wages?

[Oziex1]

Does it mean anything for Thais or does it result in more jobs for foreign workers Burmese, Cambodians.

[Always18]

So you're saying that a Thai employee who works for Casio for example down in Bankgok should be paid more than one in Issan?

This is almost as bad as the top women being paid less, the minimum wage must be standard across the country not regionalised, it's pretty obvious where this is going, the low paid in the poorer Issan and Deep South areas are about to be stiffed and the ones in Bangkok will be laughing if I'm reading this correctly.

It's seems another way in which to Alianate the population as opposed to bringing it closer together.

Keep the minimum wage country wide and treat all those on it as equals.

Equality in Thailand?....................well, that's a novel and highly laudable idea...........................but as we all know, while the trough feeders have the reins, it will never happen.................

[jerojero]

Let's hope they also impose a profit threshold on employers whereby, once beyond it, they have to start increasing workers wages incrementally above the minimum wage.

and this is done in other countries? Not. Thailand is so progressive to implement something like this. Not. Sorry won't happen in a million years.

[jerojero]

Not a good idea to give up lawmaking because laws might be broken or evaded.

Relocating production to surrounding countries is only a possible solution for one economic sector, and not even a good one. Qualifications might be lower in neighbouring countries.

Most of the service sector jobs must be kept in the location where the customers are, and the same holds true for the agrarian sector, building construction etc.

It's certainly true that some immigrant workers are afraid lose their jobs if they complain.

Then Thailand should have whistleblower protection laws for the ones that tell.

are you kidding... Whistle-blower laws? The country can't enforce basic traffic laws.

[bernd1616]

all this is great but what if you run a business, have a WP and hire the 4 thai workers to do what?

then you're hit with more salary, social, holidays etc.

NAH!

if to pay this incredible exploidet thai workers at least 500 baht a day hit you...... i wish they find some gasoline to heat up your business.

[elgordo38]

So you're saying that a Thai employee who works for Casio for example down in Bankgok should be paid more than one in Issan?

This is almost as bad as the top women being paid less, the minimum wage must be standard across the country not regionalised, it's pretty obvious where this is going, the low paid in the poorer Issan and Deep South areas are about to be stiffed and the ones in Bangkok will be laughing if I'm reading this correctly.

It's seems another way in which to Alianate the population as opposed to bringing it closer together.

Keep the minimum wage country wide and treat all those on it as equals.

Divide and conquer one side of the coin or shoot yourself in the political foot.

[kannot]

Such a proposal by the Shinawatra clan would never have won them any votes.

It is actually not a bad idea.

logically you would expect higher rates in Bangkok, other cities and tourist areas, but it could also be used to reverse migration from the villages to the more prosperous areas.

Wrong they did set it at different levels and it was phased in, to the B 300/day nation wide. The article is not clear if the new minimum wage can be set under B 300/day. If so its a step backwards. If the minimum wage is still B 300/day and can be set above that, its a step forward. The problem is that in rural village people cant pay more than what is paid in BKK and thats why people are coming to the cities. The present drought, low commodity prices and no rural support mechanism will just accelerate this process. The only way to stop migration is to support the rural economy, but for that you could be send to jail.

Almost impossible to find staff down by me in Pranburi, they all want to be security guards in BKK more money for almost no work.

I dont know who will be growing Thailands food in a few years unless it all gets highly mechanised.

[micmichd]

Guess the mentioned special economic zones are rural border zones.

Any idea what plans they have for minimum wages in the these areas?

[Afook]

I just don't see the minimum wage to be set or determined differently across the whole country, to be fair?

[Bluespunk]

Let's hope they also impose a profit threshold on employers whereby, once beyond it, they have to start increasing workers wages incrementally above the minimum wage.

and this is done in other countries? Not. Thailand is so progressive to implement something like this. Not. Sorry won't happen in a million years.

We can but dream.

To quote Oscar Wilde

"We are all in the gutter, but some of us are looking at the stars"

And it's still a better idea than regional minimum wages.

[BadBouy]

Stop importing cheap and slave labor and wages will rise appropriately on there own in sector where there are shortages of labor and then adjust minimum wage as needed. Improvement of educational system and trade schools are key to having a better and better paid work force. Simply raising minimum wage is a simplistic band aid on a much bigger problem, prices will quickly rise to nullify the rise.

[Neeranam]

Well we all know that BKK, Phuket, Samui (to name a few) are much more expensive than city's in the sticks.

On top of that the traffic jam in BKK also wastes a lot of workingtime for a labourer.

Well I know that labourers in Bkk don't go to work in their Benz. They usually live in huts very near their work.

do you really think in Phucket and Samui they are paying the same as you for food?

[greenchair]

I imagine this will be a great loophole to use in areas that employ mainly migrant workers.

This creates a legal way for them to pay half the salary of thai. But also means they can get their workers legal status. Which might help stop illegal workers and trafficking. Getting thailand off the third tier list. Another case of.

How can we get our cake and eat it.

[tonydandelot]

what's the point of setting minimum wages, thai ppl (or their cheap chinese bosses) never follow the law anyway, in isan for example they never pay u the minimum wage, my cousin only gets 200 bath a day.

can not complain cause there are 50 thais waiting in line to take over the shit job and an extra 60 lao or burmese ppl.

nice future, working for a bag of peanuts everyday.

[Thai at Heart]

So you're saying that a Thai employee who works for Casio for example down in Bankgok should be paid more than one in Issan?

This is almost as bad as the top women being paid less, the minimum wage must be standard across the country not regionalised, it's pretty obvious where this is going, the low paid in the poorer Issan and Deep South areas are about to be stiffed and the ones in Bangkok will be laughing if I'm reading this correctly.

It's seems another way in which to Alianate the population as opposed to bringing it closer together.

Keep the minimum wage country wide and treat all those on it as equals.

I have to agree.

And what should be enshrined into law is that the rate must rise by at least inflation every year. The level of increases after 97 took ages to filter through with the wage staying the same for ages.

Workers rejoice at one baht per day increase !!!! I remember the headline from notthenation.

[The Deerhunter]

So you're saying that a Thai employee who works for Casio for example down in Bankgok should be paid more than one in Issan?

This is almost as bad as the top women being paid less, the minimum wage must be standard across the country not regionalised, it's pretty obvious where this is going, the low paid in the poorer Issan and Deep South areas are about to be stiffed and the ones in Bangkok will be laughing if I'm reading this correctly.

It's seems another way in which to Alianate the population as opposed to bringing it closer together.

Keep the minimum wage country wide and treat all those on it as equals.

By your example, this would only occur if Casio (your example) were paying only the local national minimum legal wages everywhere. If they want to pay over minimum wage or the even just highest minimum wage (Bangkok???) everywhere, then no problem.

[Graemej100]

On the face of it this seems a reasonable idea but, being a bit leftist, perhaps it's around the wrong way - assuming, of course, that our thought that areas like Bangkok, Phuket, Samui and Pattaya are going to be the ones that benifit is correct. But what if it was the more depressed ares that were to benifit? Like Issan. Maybe the mothers of Issan might return from Bangkok, Phuket, Samui and Pattaya to be with their children because they could afford to. Just saying.

[rametindallas]

Let's hope they also impose a profit threshold on employers whereby, once beyond it, they have to start increasing workers wages incrementally above the minimum wage.

Good, then the company will never have enough money for expansion, capital improvements, or moving into other markets as any money over a certain threshold goes to the employees. How very Communist/anti-Capitalist. Of course, it's easy for you to care so much for the welfare of the employees as it's not your money invested in the company and you didn't take any risks to build it.

[rametindallas]

So in 2016, all the available Thai workforce will migrate to BKK as salaries will be higher...

Expect some unemployment stats to be issued shortly after...

People go were the work is! Prior to 2012 this formula was standard, and then the people were employed by local firms who could afford the salaries.. 2013 many businesses either closed or relocated.

Wage incentives, for a specified time, might be used as an incentive to get companies to expand to rural areas where there have not been many job choices.

[rametindallas]

One you set a minimum rate market forces are no longer in control.

Somewhere down the track, minimum wages or award rates will be more than the market can bear and you have the situation most of the Western faces. It is mute to have the best industrial award rates when that particular industry has collapsed and no longer employs anybody.

If anyone doesn't believe you, direct them to look at France.

[recycler]

Well we all know that BKK, Phuket, Samui (to name a few) are much more expensive than city's in the sticks.

On top of that the traffic jam in BKK also wastes a lot of workingtime for a labourer.

Many groceries and fuel are more expensive up country than in Bangkok and the more industrialized provinces.

This has to do with less competition, more steps in the supply chains, smaller volumes and longer supply routes.

[recycler]

Somehow I smell a plot to kill the economic development of the north and the north east...

[rametindallas]

On the face of it this seems a reasonable idea but, being a bit leftist, perhaps it's around the wrong way - assuming, of course, that our thought that areas like Bangkok, Phuket, Samui and Pattaya are going to be the ones that benifit is correct. But what if it was the more depressed ares that were to benifit? Like Issan. Maybe the mothers of Issan might return from Bangkok, Phuket, Samui and Pattaya to be with their children because they could afford to. Just saying.

Like Issan. Maybe the mothers of Issan might return from Bangkok

And where will those good-paying jobs in Isaan come from? What incentive is there for capital to flow to a neglected area when there is little or no return on investment.