Thai Labour Ministry considering ways to raise minimum wage next year

[webfact]

Ministry of Labor considering ways to raise minimum wage next year

File photo. Source: Internet

BANGKOK, 8 April 2015 (NNT) - The Ministry of Labour has launched a feasibility study into five options for raising the minimum wage next year.

The study is expected to be ready for government deliberation in May. Permanent Secretary of Labor Nakhon Silpa-archa, who is also a chairman of the minimum wage committee, said the panel insisted the 300 baht daily minimum wage be maintained until the end of 2015.

The committee has considered five options for the wage hike. They include increasing it directly via committee request, allowing wages increase organically via the private sctor, consulting 18 provincial groups or industrial factors, and using combination approach.

According to the labor panel, more than 6,000 workers from 223 companies based in 12,229 locations receive below 300 baht per day. These companies are mostly small-sized enterprises. The Department of Labour Protection and Welfare will take legal action against these employers.

Violators of the minimum wage regulation receive a maximum jail term of six months and/or a fine of 100,000 baht. Mr. Nakhon reiterated that both Thai and migrant workers must be paid a minimum wage of 300 baht daily.

-- NNT 2015-04-08

[Costas2008]

I'm glad to hear that the "happiness to the people" campaign is alive and kicking.

All the Thai employers, will be over the moon after hearing this.

I'm not against raising the minimum wages but first wait and see how the economy is progressing and then put through populist suggestions.

What can happen is, there will be no enterprises left to pay not only the minimum wages but any wages at all.

[JOC]

I'm glad to hear that the "happiness to the people" campaign is alive and kicking.

All the Thai employers, will be over the moon after hearing this.

I'm not against raising the minimum wages but first wait and see how the economy is progressing and then put through populist suggestions.

What can happen is, there will be no enterprises left to pay not only the minimum wages but any wages at all.

Talking like a true 'elite" supporter!!

Never mind if the poor are hungry, as long as we can afford gasoline to the Lamborghini...........

[GarryP]

I'm glad to hear that the "happiness to the people" campaign is alive and kicking.

All the Thai employers, will be over the moon after hearing this.

I'm not against raising the minimum wages but first wait and see how the economy is progressing and then put through populist suggestions.

What can happen is, there will be no enterprises left to pay not only the minimum wages but any wages at all.

In many large industries in Thailand the profit margin is very high. Many business owners are simply not prepared to reduce their own cut to provide a fair wage for the worker. They keep screaming and shouting that their costs are going up and cannot make sales, but the bottom line is they are not prepared to reduce their income for the sake of sales and the work force. When you are taking home say 10 million a month, you would think they could reduce that to say 8 million for the sake of their business and workforce. But no. So many greedy business operators in Thailand.

[JOC]

I'm glad to hear that the "happiness to the people" campaign is alive and kicking.

All the Thai employers, will be over the moon after hearing this.

I'm not against raising the minimum wages but first wait and see how the economy is progressing and then put through populist suggestions.

What can happen is, there will be no enterprises left to pay not only the minimum wages but any wages at all.

In many large industries in Thailand the profit margin is very high. Many business owners are simply not prepared to reduce their own cut to provide a fair wage for the worker. They keep screaming and shouting that their costs are going up and cannot make sales, but the bottom line is they are not prepared to reduce their income for the sake of sales and the work force. When you are taking home say 10 million a month, you would think they could reduce that to say 8 million for the sake of their business and workforce. But no. So many greedy business operators in Thailand.

Spot on!!

A good example is CPALL (owner of 7-Eleven Thailand), they are probably paying their staff 8-9000/month.

Compare that to their 2014 net profit of 20.5 billion baht!!

[i claudius]

I'm glad to hear that the "happiness to the people" campaign is alive and kicking.

All the Thai employers, will be over the moon after hearing this.

I'm not against raising the minimum wages but first wait and see how the economy is progressing and then put through populist suggestions.

What can happen is, there will be no enterprises left to pay not only the minimum wages but any wages at all.

Talking like a true 'elite" supporter!!

Never mind if the poor are hungry, as long as we can afford gasoline to the Lamborghini...........

What will happen is the same as last ,time,people lose their jobs and everything the poor people need goes up in price,they lose out. ,because a few baht on cow moo deng means nothing to us but their rise is just swallowed up and then they need another one

[CanInBKK]

I'm glad to hear that the "happiness to the people" campaign is alive and kicking.

All the Thai employers, will be over the moon after hearing this.

I'm not against raising the minimum wages but first wait and see how the economy is progressing and then put through populist suggestions.

What can happen is, there will be no enterprises left to pay not only the minimum wages but any wages at all.

In many large industries in Thailand the profit margin is very high. Many business owners are simply not prepared to reduce their own cut to provide a fair wage for the worker. They keep screaming and shouting that their costs are going up and cannot make sales, but the bottom line is they are not prepared to reduce their income for the sake of sales and the work force. When you are taking home say 10 million a month, you would think they could reduce that to say 8 million for the sake of their business and workforce. But no. So many greedy business operators in Thailand.

Spot on!!

A good example is CPALL (owner of 7-Eleven Thailand), they are probably paying their staff 8-9000/month.

Compare that to their 2014 net profit of 20.5 billion baht!!

Yet another thread about the minimum wage. What people (allow me to use the phrase "socialist-minded") like to think is that the poor are oppressed by the wealthy. What I'd like to clarify is that it's really all about supply and demand in a free market economy. When there are ample people willing to work for 300 baht/day, there should not be any policies to mandate a higher wage. Why not? Because economics dictates that this will only cause inflation to rise and the same goods which were previously "difficult to afford" will be become "too expensive" again.

The only way to deal with poverty (in a long term solution) is to increase productivity of workers.....essentially higher education. This will drive minimum wage up naturally due to shorter supply of people willing to work for a pitance.

Economics people, not socialism.

[max72]

I'm glad to hear that the "happiness to the people" campaign is alive and kicking.

All the Thai employers, will be over the moon after hearing this.

I'm not against raising the minimum wages but first wait and see how the economy is progressing and then put through populist suggestions.

What can happen is, there will be no enterprises left to pay not only the minimum wages but any wages at all.

In many large industries in Thailand the profit margin is very high. Many business owners are simply not prepared to reduce their own cut to provide a fair wage for the worker. They keep screaming and shouting that their costs are going up and cannot make sales, but the bottom line is they are not prepared to reduce their income for the sake of sales and the work force. When you are taking home say 10 million a month, you would think they could reduce that to say 8 million for the sake of their business and workforce. But no. So many greedy business operators in Thailand.

Spot on!!

A good example is CPALL (owner of 7-Eleven Thailand), they are probably paying their staff 8-9000/month.

Compare that to their 2014 net profit of 20.5 billion baht!!

Yet another thread about the minimum wage. What people (allow me to use the phrase "socialist-minded") like to think is that the poor are oppressed by the wealthy. What I'd like to clarify is that it's really all about supply and demand in a free market economy. When there are ample people willing to work for 300 baht/day, there should not be any policies to mandate a higher wage. Why not? Because economics dictates that this will only cause inflation to rise and the same goods which were previously "difficult to afford" will be become "too expensive" again.

The only way to deal with poverty (in a long term solution) is to increase productivity of workers.....essentially higher education. This will drive minimum wage up naturally due to shorter supply of people willing to work for a pitance.

Economics people, not socialism.

Thailand is NOT liberal country, it is a big mafia country with the very very great majority in dire poverty if not starving to death while few ultra rich families mostly of Chinese origins own the country (and all institutions ) and do what they want. They are (or make) the law.

It is NOT free market economy, it is a distorted and corrupt economy, not biding by the bid and ask.

I am not socialist , i am a liberal, but I stand for true liberalism, not a corrupt MONOPOLITICAL unliberal system like the one is in Thailand now.

[Chupup]

When the shin government put the minimum wage up to bht 300, a lot of subsistence farmers cut down and just made rice for the family as they could not afford to pay it, then because the farm stores had to pay more in wages they put up the price of chemicals and fertilizers making rice farming more expensive, we used to use local labour to help plant and harvest the rice but now we hire the machines to do the job, giving a wage rise is not always the answer as once prices go up they very seldom come down again. what it does do however is put people out of work and some smaller firms/ businesses to close down

[brain150]

I'm glad to hear that the "happiness to the people" campaign is alive and kicking.

All the Thai employers, will be over the moon after hearing this.

I'm not against raising the minimum wages but first wait and see how the economy is progressing and then put through populist suggestions.

What can happen is, there will be no enterprises left to pay not only the minimum wages but any wages at all.

In many large industries in Thailand the profit margin is very high. Many business owners are simply not prepared to reduce their own cut to provide a fair wage for the worker. They keep screaming and shouting that their costs are going up and cannot make sales, but the bottom line is they are not prepared to reduce their income for the sake of sales and the work force. When you are taking home say 10 million a month, you would think they could reduce that to say 8 million for the sake of their business and workforce. But no. So many greedy business operators in Thailand.

Spot on!!

A good example is CPALL (owner of 7-Eleven Thailand), they are probably paying their staff 8-9000/month.

Compare that to their 2014 net profit of 20.5 billion baht!!

Yet another thread about the minimum wage. What people (allow me to use the phrase "socialist-minded") like to think is that the poor are oppressed by the wealthy. What I'd like to clarify is that it's really all about supply and demand in a free market economy. When there are ample people willing to work for 300 baht/day, there should not be any policies to mandate a higher wage. Why not? Because economics dictates that this will only cause inflation to rise and the same goods which were previously "difficult to afford" will be become "too expensive" again.

The only way to deal with poverty (in a long term solution) is to increase productivity of workers.....essentially higher education. This will drive minimum wage up naturally due to shorter supply of people willing to work for a pitance.

Economics people, not socialism.

This is simply WRONG and the brainwashed BS from main stream media !!!

Fact is that mid/long term there will not be work for MOST people so a society based on the factor WORK is to fail anyway !

Nothing to do with socialism !

The system we have now is the middle class producing the interest for the rich and at the same time financing the poor through the social security system.

We are in a non-working system that cannot be fixed but needs to be replaced with a whole new model.

If there would be any humanity in the current economic model there would not be any poor people !!!

Wake up and educate yourself PLEASE

[CanInBKK]

I agree that the Gini coefficient in Thailand is among the worst in the world, but it's not as "mafia" as you make it out to be. Sure there are problems, but "Chinese families" does not explain why literacy (an essential index of education) is so abysmal (72nd out of 177 countries -https://www.eldus.com/251425.page ). A lack of emphasis on the importance of education and an "entitlement" mentality is what needs to change.

Increasing minimum wage will do absolutely nothing in long run except damage the economy.

Edited April 8, 2015 by CanInBKK

[CanInBKK]

This is simply WRONG and the brainwashed BS from main stream media !!!

Fact is that mid/long term there will not be work for MOST people so a society based on the factor WORK is to fail anyway !

Nothing to do with socialism !

The system we have now is the middle class producing the interest for the rich and at the same time financing the poor through the social security system.

We are in a non-working system that cannot be fixed but needs to be replaced with a whole new model.

If there would be any humanity in the current economic model there would not be any poor people !!!

Wake up and educate yourself PLEASE

I don't quite understand what you mean by "there will not be work for most people". Do you mean we're gradually being replaced by machines? If so, then there will be a ton of engineering jobs (definitely not minimum wage).

There will always be work. Similarly there will be people both able/willing to do it as there will be people too lazy/uneducated to do it. Depending on which type of person outweighs the other will determine the overall "wealth" of a nation.

Edited April 8, 2015 by CanInBKK

[thesetat2013]

I'm glad to hear that the "happiness to the people" campaign is alive and kicking.

All the Thai employers, will be over the moon after hearing this.

I'm not against raising the minimum wages but first wait and see how the economy is progressing and then put through populist suggestions.

What can happen is, there will be no enterprises left to pay not only the minimum wages but any wages at all.

Talking like a true 'elite" supporter!!

Never mind if the poor are hungry, as long as we can afford gasoline to the Lamborghini...........

JOC you talk as a true red short supporter. ( not a Typo)

The problem is that with the wage increase last time came an even bigger increase in local products and food stuff. What cost 25-35 baht now costs 35-45 baht and the quantity is less. I fear this will happen again. Before they increase wages again they need to set standards on other things consumed daily so that this will not happen again. The poor stay poor when rate increases don't meet the demand for daily living expenses.

[Sydebolle]

Maybe those geeks would consider "increase efficiency, output, punctuality, reliability and quality". Yingluck had this splendid idea of a vote gaining token which worked. Too stupid to think over her nose tip she forgot that if the low end gets an increase the middle and upper level wants an adjustment too. In our case it took our salary level to new heights of a total of 28% in four years. Guess what, the increase efficiency, output, punctuality, reliability and quality - unlike the salary - did not go up but rather down. In one particular case an employee, earning THB 39'000, wanted a 50% hike like the bottom earners (which we do not even have). Had to accept his resignation over the loss of face when I called the staff together and asked him publicly, who I would have to sack in order to cover his increase request as my products cannot be increased 50% (or even 28%) over this time span.

Time to pack up and move on - this place is, work wise, a bloody joke and nothing else!

[micmichd]

I'm glad to hear that the "happiness to the people" campaign is alive and kicking.

All the Thai employers, will be over the moon after hearing this.

I'm not against raising the minimum wages but first wait and see how the economy is progressing and then put through populist suggestions.

What can happen is, there will be no enterprises left to pay not only the minimum wages but any wages at all.

Why no maximum wage?

[UTH001]

"According to the labor panel, more than 6,000 workers from 223 companies based in 12,229 locations receive below 300 baht per day"

This is just not possible! 223 companies and 6,000 workers is 27 workers per company. And in 12,000 locations???

Anyway, I regularly look for staff to do garden work etc (Isaan), NOT easy. I pay substantially ABOVE minimum wage, and I have to be grateful that I fine someone! Seems that even THB 10,000 a month is not enough for most! And believe me, they really do not have to work THAT hard here...

[useronthenet]

Better for the government to reintroduce strict controls on lending. Raising the salaries from 300 baht per day upwards will cause the country to outprice itself out of the market. Inflation is already on the up. Exports will be effected, and companies considering to invest into Thailand will go elsewhere. Loss of jobs will follow, then the fun will really start.

[MILT]

....no problem raise the minimum wage and then raise job performance that actually reflects the increase as well...

as it is now wages go up but not performance, unless of course the individual actually desires to excel...

[Searat7]

What bothers me is when they have a Myanmar (for example) person doing the same job as a Thai but getting paid much less. It's particularly ironic if the position is a waiter because many Myanmar people speak better English. People doing the same job should be treated equally.

[winstonc]

When the shin government put the minimum wage up to bht 300, a lot of subsistence farmers cut down and just made rice for the family as they could not afford to pay it, then because the farm stores had to pay more in wages they put up the price of chemicals and fertilizers making rice farming more expensive, we used to use local labour to help plant and harvest the rice but now we hire the machines to do the job, giving a wage rise is not always the answer as once prices go up they very seldom come down again. what it does do however is put people out of work and some smaller firms/ businesses to close down

firstly 300 baht is not nationwide neither is it fully implemented..the price of chemicals and fertilizers was put up by the few mafia type companies that have a stranglehold on this business,who increased the price when the last rice scheme was introduced,so when food prices go up and the wages stay the same..is it small wonder they need a raise..

[elgordo38]

I'm glad to hear that the "happiness to the people" campaign is alive and kicking.

All the Thai employers, will be over the moon after hearing this.

I'm not against raising the minimum wages but first wait and see how the economy is progressing and then put through populist suggestions.

What can happen is, there will be no enterprises left to pay not only the minimum wages but any wages at all.

They need an increase period. Prices are climbing I notice it daily. If a man cannot put food in his belly and a roof over his head forget the economy we are all in trouble. How does one judge the economy my dear fellow by the fudged figures the government issues hardly. Big business has all these free trade agreements that allow businesses to close up shop and move onto the next cheap wage country and we are surrounded by those. Its time we had a world wide workers council that told big business how much profit they should make. And it goes without saying these profits are reaching obscene levels. Its time to level this uneven playing field. The dignity and respect that workers of my generation received is long gone. Your a number now. When your sick get a doctors note waste your time and the doctors. When we do not need you go home. They are saying no to pensions decent wage increases medical benefits all for the sake of greed. Today life is a bit*h and then you die.

[elgordo38]

I'm glad to hear that the "happiness to the people" campaign is alive and kicking.

All the Thai employers, will be over the moon after hearing this.

I'm not against raising the minimum wages but first wait and see how the economy is progressing and then put through populist suggestions.

What can happen is, there will be no enterprises left to pay not only the minimum wages but any wages at all.

In many large industries in Thailand the profit margin is very high. Many business owners are simply not prepared to reduce their own cut to provide a fair wage for the worker. They keep screaming and shouting that their costs are going up and cannot make sales, but the bottom line is they are not prepared to reduce their income for the sake of sales and the work force. When you are taking home say 10 million a month, you would think they could reduce that to say 8 million for the sake of their business and workforce. But no. So many greedy business operators in Thailand.

Spot on!!

A good example is CPALL (owner of 7-Eleven Thailand), they are probably paying their staff 8-9000/month.

Compare that to their 2014 net profit of 20.5 billion baht!!

Yet another thread about the minimum wage. What people (allow me to use the phrase "socialist-minded") like to think is that the poor are oppressed by the wealthy. What I'd like to clarify is that it's really all about supply and demand in a free market economy. When there are ample people willing to work for 300 baht/day, there should not be any policies to mandate a higher wage. Why not? Because economics dictates that this will only cause inflation to rise and the same goods which were previously "difficult to afford" will be become "too expensive" again.

The only way to deal with poverty (in a long term solution) is to increase productivity of workers.....essentially higher education. This will drive minimum wage up naturally due to shorter supply of people willing to work for a pitance.

Economics people, not socialism.

Your dreaming take a look at the increasing population. Education is mandated by the government and is sadly lacking. This is one area I thought the junta could really get their teeth into but sadly no. Any slack in the labor force is taken up by people migrating here from lower wage countries and we are surrounded by these. As long as you have these people flooding the borders nothing will change. Take a look at what educated people are making here it is not really all that great and a lot are sitting on the sidelines looking for employment same as other countries. You talk productivity increases these people are being "prodded" all the time to work harder and faster and longer. It is time workers had a say in the way they are "labored" Companies should be more forthright and open their books let a workers committee study them to see if an increase is justified. Its time for a MacDonald's approach here. Do it before you are forced to show your appreciation to your work force. You get it back double by employee loyalty

[Daniel Ingalls]

"Considering ways to raise minimum wage next year".........................There is only one way to do it......IS DO IT!........There is no other way, Numb Nuts!

[bernd1616]

I'm glad to hear that the "happiness to the people" campaign is alive and kicking.

All the Thai employers, will be over the moon after hearing this.

I'm not against raising the minimum wages but first wait and see how the economy is progressing and then put through populist suggestions.

What can happen is, there will be no enterprises left to pay not only the minimum wages but any wages at all.

i cry for this companies with net profits far over the clouds while exploiding the staff with a more than miserable salary of only 300 baht a day and a 60 hour working week if i were a thai.... gasoline and bye bye, specialy with all the farang companies leader to eploid the thais.

[bernd1616]

just for nothing to remember the last time if the general allows the companies and so on to rise the price for the products etc far higher again than the wage goes up, to make even more higher net profits as by now. and by now means the net profits are far over the clouds. btw best known and number one in the world with such a behavior are the companies from usa "teaching" thai business people and others with the "good" example.

[Luxfare]

The problem I see with this is all that will happen is either

A/ cost of living will increase due to manufacturers passing the increase onto the consumer

B/ if they are paid an annual bonus, this will be reduced according to the profit hit.

I work for one of the big companies out here and it's been discovered that IF the daily minimum wage goes past 350thb then it's cheaper to go fully automated at the factories and lay people off.... And this is a generous company I work for who paid ALL employees 5 month bonus last year.....you can only imagine what the small struggling businesses will do.

[Pompey50]

I'm glad to hear that the "happiness to the people" campaign is alive and kicking.

All the Thai employers, will be over the moon after hearing this.

I'm not against raising the minimum wages but first wait and see how the economy is progressing and then put through populist suggestions.

What can happen is, there will be no enterprises left to pay not only the minimum wages but any wages at all.

In many large industries in Thailand the profit margin is very high. Many business owners are simply not prepared to reduce their own cut to provide a fair wage for the worker. They keep screaming and shouting that their costs are going up and cannot make sales, but the bottom line is they are not prepared to reduce their income for the sake of sales and the work force. When you are taking home say 10 million a month, you would think they could reduce that to say 8 million for the sake of their business and workforce. But no. So many greedy business operators in Thailand.

Spot on!!

A good example is CPALL (owner of 7-Eleven Thailand), they are probably paying their staff 8-9000/month.

Compare that to their 2014 net profit of 20.5 billion baht!!

Yet another thread about the minimum wage. What people (allow me to use the phrase "socialist-minded") like to think is that the poor are oppressed by the wealthy. What I'd like to clarify is that it's really all about supply and demand in a free market economy. When there are ample people willing to work for 300 baht/day, there should not be any policies to mandate a higher wage. Why not? Because economics dictates that this will only cause inflation to rise and the same goods which were previously "difficult to afford" will be become "too expensive" again.

The only way to deal with poverty (in a long term solution) is to increase productivity of workers.....essentially higher education. This will drive minimum wage up naturally due to shorter supply of people willing to work for a pitance.

Edited April 8, 2015 by Pompey50

[konying]

Here is the deal, i have been in business for a while here now and since the last wage rise, productivity reduced, staff stupidity increased and staff shortages also increased.

For the life of me i can not understand why would anyone want to raise wages when it only results in more laziness and less productivity.

I have not stopped wasting money on job advert for the last 3 years.

Since the last wage rise, get about 50 people calling for the job per month, about 7 out of those 50 actually bother to show up for interview.

Out of 7, lucky 2 will actually come on time, not 30 mins late if not 4 hours late.

Out of 2, none will have matching or required qualifications, and even after employing and and wasting time and money on them, they quit to go back to Isaan because they are tired.

[thhMan]

I hope they make it compulsory that if your on a wage, that you do work that doesnt involve facebook, selfies and congregating in groups and chatting

[Torrens54]

Fine, raise the Minimum Wage but it should be for people who WORK, not sit around playing with a smartphone and/ or picking their nose.