FTI rejects proposed minimum wage hike

[Pib]

They'll need that rise to pay income tax levied on them.

Unlikely.

Thailand has the lowest tax collection rate in the world at 20% vs 40%. Even the Junta falls short with all its absolute powers.

Not quite sure of your definition "tax collection rate" but according to this World Bank data/webpage regarding Central Govt/Federal Tax Revenue as % of GDP Thailand collects approx 17%. The data also shows many countries with lower percentages like India, Japan, and US around 10%...and some smaller countries even lower. UK around 25%...Australia around 20%. Remember this is central govt collections only, but in Thailand almost all taxes collected by various means (i.e., income tax, business tax, VAT, etc) goes to the central govt versus other taxes also collected by states/provinces/local govt like in other countries. Thailand is pretty much totally run "tax money wise" from central govt funds vs local govt funds (local govts get almost all their funds from the central govt).

Now if you are talking the percentage of people who pay taxes well your data may be correct since many, many Thais fall below the income level in needing to pay taxes/file income tax returns...and of course many just hid from the taxman...don't know since you didn't provide a reference/source weblink. Different stats, different definition of stats, different results.

Edited April 3, 2015 by Pib

[seajae]

in other countries a wage hike is linked to a productivity gain, here productivity means absolutely nothing to workers, too busy on the i phones and looking at their faces to actually do work. For a company to pay higher wages they need to be able to make higher profits, unfortunately this is the way of the world, if people want to whinge about how much workers should be paid then they should start their own business and pay them. We all know wages are low here but so is the cost of living, if they didnt buy the latest iphones and you beaut trucks and drink every night they wouldnt be in so much debt, they need to learn to budget more than anything. Inflation needs to be locked in as well to wages but the workers need to actually work first

Many of the companies targeted are already making sizeable profits. In Thailand as you know, the owners/top managers get the big money, while the workers get relatively little.

Are you against capitalism and free markets and all that good stuff? When there is a labour shortage, in the free market system, wages increase. When there is an abundance of labour, wages are driven down.

I am aghast, shocked to see the amount of dirty commies espousing a policy more fitting of a centrally managed Soviet era economy. It seems free markets and capitalism only applies to the wealthy and well positioned, and not to workers.

Forgive me if I guffaw.

Remember what that strident little pommie socialist Billy Bragg used to warble? Sometimes you got to take the crunchy along with the smooth? Well, in capitalism workers asking for higher wages and sometimes getting them, is part of what makes capitalism fair for participants.

Signed,

A conservative

"Are you against capitalism and free markets and all that good stuff? When there is a labour shortage, in the free market system, wages increase. When there is an abundance of labour, wages are driven down. "

are you serious, when there is a shortage employers are willing to pay more for the better workers, have you ever run a business or are you too busy trying to bitch about them. Anyone that has had to work to run a business knows the truth of it, it isnt easy, you put up all the capitol, you run all the risks, if it fails you lose everything. For this reason you want the best workers and you pay for them because you know its in your best interests to do so, strangely enough it is people like you that have no ideas at all about how to run a business that are not able to see the truth just your typical bias against your own personal hates.

What is pathetic is that you come in here and then rave and rant but have no practical ideas about it, just your personal idealism, maybe you should actually get yourself a job where you are required to do actual real work and not simply sit on your arse and whinge about those that have done the hard yards and taken chances, you are sounding very much like a far left union delegate that thinks every worker is owed when it is the other way round. What you need to remember is that it is the employers right to hire a worker not a workers right to have a job or do you think that they start up a business so they can give all the profits to the workers and they make nothing.

My workers were always paid above award wages because they did exactly what I wanted them too, if jobs were finished quicker they got bonuses. A good boss takes care of his workers as long as they do what they are employed for or would you just give them money to sit on their bums all day. Here the bosses work differently but it still applies, you pay the workers what they are worth workwise not what they think they deserve, if they are really good workers then yes, they should get more but if they are simply there for the money & do as little as possible only then no, they need to earn their keep just like everyone else.

Before trying to put everyone else down for stating facts and the truth you need to look at your "union" bullsh*t ideals about deserving more and employers deserving less, put your money where your mouth is and start your own business but then that would make you the thing you hate most, someone that has the balls to take a chance to earn money and make something of themselves.

Edited April 3, 2015 by seajae

[Godders]

Thailand is awash with money, but most of it is in the hands of the wealthy elite, who hide their assets and employ smart accountants to avoid paying tax. Squeeze these selfish lemons till the pips squeak and there will be plenty in the kitty to up the derisory minimum wage paid to the millions whose labour they exploit.

I live in a town some 200 kilometers from Bangkok. My two oldest stepsons underwent three years of tertiary education at vocational training college to gain qualifications which we were led to believe an open sesame to a decent, well-paid job. Several years on, and both in their twenties, the lads are working long hours six days a week - one in a government hospital, the other in a large tourist hotel - for a small amount above the minimum wage.

They tell me they are lucky compared with many of their contemporaries, who are paid well below the 300 baht a day figure - which everyone knows really only applies to Bangkok..

Goodness knows how anyone is supposed to support themselves, let alone a family, on 300 baht a day. A few captains of industry and politicians should put their money where their convictions are and try it for a month - and invite the mass media in to give us daily fly-on-the-wall accounts of how they get on.

Now that would be reality TV worth watching.

[rubl]

in other countries a wage hike is linked to a productivity gain, here productivity means absolutely nothing to workers, too busy on the i phones and looking at their faces to actually do work. For a company to pay higher wages they need to be able to make higher profits, unfortunately this is the way of the world, if people want to whinge about how much workers should be paid then they should start their own business and pay them. We all know wages are low here but so is the cost of living, if they didnt buy the latest iphones and you beaut trucks and drink every night they wouldnt be in so much debt, they need to learn to budget more than anything. Inflation needs to be locked in as well to wages but the workers need to actually work first

Many of the companies targeted are already making sizeable profits. In Thailand as you know, the owners/top managers get the big money, while the workers get relatively little.

Are you against capitalism and free markets and all that good stuff? When there is a labour shortage, in the free market system, wages increase. When there is an abundance of labour, wages are driven down.

I am aghast, shocked to see the amount of dirty commies espousing a policy more fitting of a centrally managed Soviet era economy. It seems free markets and capitalism only applies to the wealthy and well positioned, and not to workers.

Forgive me if I guffaw.

Remember what that strident little pommie socialist Billy Bragg used to warble? Sometimes you got to take the crunchy along with the smooth? Well, in capitalism workers asking for higher wages and sometimes getting them, is part of what makes capitalism fair for participants.

Signed,

A conservative

Interesting is that the Yingluck Government in order to prepare the business sector for the possible impact of the 'election promise' raise of the minimum wage, lowered Corporate tax from 30% to 23% September 2011, a month after Ms. Yingluck read out 'her' government's plans, and to 20% a year later. Workers in 70 out of 76 provinces had to wait till January 2013 and the government having pronounced "mission accomplished" a year before (as in 'all is planned') forgot to ensure the new law was enforced.

So, big business profited doubly, thank to the 'big business' proxy government which said to help the poor, the common people. Utterly disgusting.

Signed,

a dangerous lefty

(aka uncle rubl)

god you are such a troll... you do not even understand what happened with the agreement for the minwage increase and the delay in implementation but you are happy to blame it on the wrong people.

The corp tax cut was part of the deal to get the increase through - call it appeasement, but it was a demand of the business lobby, not the idea of the government.

Then that same group turned around and did everything in their power to delay the implementation - even whining about how they couldn't afford it due to the flooding...

So yeah, corporations profited from the break and from the delay and it was their own doing. Yes, utterly disgusting but hardly unexpected. It's the way people with money manuver so as to horde more money for themselves and not carry their own weight in society.

Not an idea of the government? It was part of the various election promises.

Begin of August, 2011 Ms. Yingluck read out her governments policies. Amongst the urgent ones to implement the first year

1.8.2 Enable a worker to earn not less than 300 Baht per day and a bachelor’s degree holder to have an income of not less than 15,000 Baht per month which will be in line with his/her productivity and efficiency; implement counter-measures to reduce the burden of entrepreneurs whom have been affected by the abovementioned measures so that workers and personnel can make a living with dignity and obtain a decent quality of life.

1.9 Reduce Corporate Income Tax to 23% in 2012 and to 20% in 2013 so as to generate competitiveness of the private sector, to broaden the tax base and to support entry to the ASEAN Community in 2015.

BTW this of course means I was wrong. The corporate tax cut had no relation with the minimum wage raise. Entrepreneurs would 'profit' from 'counter-measures'.