Thread: Minimum wage to increase by April 2011

Originally Posted by FailSafe

I don't get as many 'fair day's work' as I would like- that will change, especially if I'm paying a high wage for it.

Ain't that a fact...we have severe deadlines at the moment, my expat Lead designer said that he didn't want to push the guys much harder (introducing overtime) as he felt they were at their limit.

I watch them arrive late, go early for lunch, sleep a bit and leave early, never completing their full compliment of hours. On the edge, my arse.

^Nonetheless you may find they will quit fast enough if pushed, there are plenty of jobs about. Fact is there is a labor shortage and it's very hard to find skilled, responsible staff.

Wage rises will only be part of the solution if they are combined with increased productivity, some seem to feel increased efficiency will happen automatically but I can't see why.

Thai-ASEAN News Network

Bt300 Minimum Wage Feared to Affect Hotel Industry

UPDATE : 17 August 2011

The Thai Hotels Association president is looking forward to discussing the 300-baht minimum wage policy with the new tourism and sports minister.

Meanwhile, many attractions and hotels have been damaged by floods and are waiting for government aid.


Thai Hotels Association President Prakit Chin-amornpong said the association plans to meet with the tourism and sports minister to discuss assisting business operators affected by flooding as well as the proposed 300-baht minimum wage issue.

The president believes that increasing the minimum wage will affect two- and three-star hotels.

He stated that in Phayao Province, the current minimum wage is 159 baht.

If it is increased to 300 baht, it will affect labor cost, in some cases, up to 88 percent.

Prakit said that many issues need to be discussed with the minister regarding the upcoming ASEAN Economic Community that will go into effect in 2015.

He said hotel operators want the government to support them by promoting tourism.

The number of visiting foreign tourists reached nine million over the past six months, which is a 30-percent increase from last year.

However, the average number of days that European tourists spend in the kingdom is down to three or four.

The Thai Hotels Association, Thai Chefs Association and Thailand Restaurants Association have joined hands in organizing the Food and Hotels Thailand 2011 event to promote hotel businesses, food and services.

It will be held from September 13 to 16 at the Royal Paragon Hall, Siam Paragon.

There will be more than 750 businesses participating in this event.

Over 25,000 attendees and combined spending of 2.5 billion baht are expected during the fair.

Bangkok Post : Kittiratt: Wage hike meeting today

Kittiratt: Wage hike meeting today

• Published: 18/08/2011 at 02:33 PM
• Online news:

There will be a meeting to discuss the 300 baht daily minimum wage policy with the private sector this afternoon, Commerce Minister Kittiratt Na-Ranong said on Thursday.

The meeting, to discuss implementation of the election promise, would be attended by representatives from the Finance and Labour ministries and the Joint Private Committee on Commerce, Industry and Banking (JCCIB) said Mr Kittiratt.

The JCCIB comprises representatives of the Thai Chamber of Commerce, the Federation of Thai Industries and the Thai Bankers Association.

The deputy prime minister said he hoped the meeting could reach a resolution acceptable to all parties. The desired outcome would be a guideline that makes the private sector feel it is worthwhile raising the daily minimum wage, in exchange for direct and indirect incentives from the state.

He said the government will also try to reduce production costs for manufacturers, such as lowering interest rates and reducing corporate income tax.

Mr Kittiratt said the government would not try to force the private sector to comply with the wage hike policy. The government would take the lead by increasing the minimum wage for workers of state enterprises and employees of state agencies.

“The informal discussion with the JCCIB will also cover the impacts of the wage hike on each industry,” he said.

Thai Chamber of Commerce chairman Dusit Nonthanakorn said he agreed with the government’s policy to increase workers' incomes, however the actual increase in the minimum wage should be decided by the tripartite wage committee.

Surapong Paisitpattanapong, spokesman of the Automotive Industry Club at the Federation of Thai Industries, said increasing the daily minimum wage to 300 baht could drive investors to other countries.

Mr Surapong said in the short-term the wage hike would increase labour costs in the automotive industry by 40 per cent. Auto-parts makers might have to increase prices of their products. Car makers in Thailand might be forced to import cheaper parts from other countries.

In the long-run, Japanese car makers planning to increase investment in Thailand might consider moving production to neighbouring countries where the labour costs are lower, he said.

Thai-ASEAN News Network

Siam Cement Backs Minimum Wage Hike

UPDATE : 18 August 2011

Siam Cement Group voices its support for the new government's proposal on the increase of the daily minimum wage to 300 baht and the entry salary for new graduates to 15,000 baht.

SCG Chemical executive and Map Ta Put Olefins Managing Director Somchai Wangwattanapanit said the company will cooperate with the government to increase the daily minimum wage to 300 baht and the entry salary for new graduates to 15,000 baht.


Somchai said the wage hike will not have much impact on the company's labor cost because it has been investing in more advanced technology to replace laborers.

Somchai commented that prices of petrochemical products move in the same direction as oil.

With the economic growth of Thailand and Asia, he expects higher demand for petrochemical products.

In addition, Somchai said SCG Chemical is developing the first and biggest smokeless factory in Thailand under the green manufacturing practice and to promote a cleaner environment, utilizing a budget of 2.5 billion baht.

Construction will start next month at the Map Ta Phut industrial estate in Rayong Province and will be completed by November 2013.

Thai-ASEAN News Network

Steel Company Plans Price Hike

UPDATE : 18 August 2011

A steel company has announced its decision to raise product prices in two months due to an increase in production cost.

The company welcomes the daily minimum wage increase as initiated by the Pheu Thai-led government.

TATA Thailand Steel President Larptawee Senawong said the company maintained its steel rod price at 22 baht per kilogram, well below the Commerce Ministry's reference price, despite expectation of a price increase during the rainy-season.


However, the company will seek a meeting with the ministry's Internal Trade Department to ask for a price hike in the next two months.

Regarding the proposal for a daily minimum wage increase to 300 baht, he stated that it would not affect the steel industry much.

Larptawee predicted that the construction sector will see a growth of five to ten percent this year in accordance with the expansion of the condominium and hotel industries in Bangkok and its vicinity.

It is expected that the steel industry will continue to grow at least five percent every year.

TATA aims to increase its production from 1.5 million tons to 1.7 million tons by the end of this year and to three million tons by 2015 with the hope of expanding export to the ASEAN market.

Thai-ASEAN News Network

Minimum Wage Hike Still Inconclusive

UPDATE : 18 August 2011

The private sector recommends the government gradually raise the daily minimum wage to provide time for industries to adapt themselves.

Meanwhile, the deputy prime minister for economic affairs pledges the hike will not be forced on business owners.


The Joint Standing Committee on Commerce, Industry and Banking, comprising the Federation of Thai Industries, the Thai Chamber of Commerce and the Thai Bankers Association, today had a meeting with Deputy Prime Minister in charge of economic affairs Kittirat Na Ranong, Labor Minister Padermchai Sasomsap and Finance Minister Thirachai Phuvanatnaranubala over the government's planned to raise the minimum wage to 300 baht a day.

Kittirat said the government's policy of raising the daily minimum wage will not be implemented as a compulsory measure.

He stated the government will pilot the policy by increasing the pay at state offices and state enterprises.

The minister maintained the wage hike must be in accordance with the efficiency of workers and the government will seek measures to help companies cover their rising labor cost.

Meanwhile, President of the Federation of Thai Industries, or FTI, Phayungsak Chatsuthipol, suggested the minimum wage be hiked on step-by-step basis to 300 baht a day in four years to give time for entrepreneurs to adapt themselves.

Phayungsak stated the immediate increase in the wage to 300 baht a day will severely hurt many industries, such as processed food, garment and footwear.

He maintained the wage increase must be approved by the tripartite committee made up of representatives from the government, employees and employers as the labor law requires.

The FTI chief stated the government accepted the suggestion for the step wage increase for consideration.

He said the two sides will have another meeting on the wage hike issue in one week or two.

Originally Posted by StrontiumDog

Thai-ASEAN News Network

Steel Company Plans Price Hike

UPDATE : 18 August 2011


TATA Thailand Steel President Larptawee Senawong said the company maintained its steel rod price at 22 baht per kilogram, well below the Commerce Ministry's reference price, despite expectation of a price increase during the rainy-season..

That is a ridiculous offset, they must be processing steel by a 1 gallon bucket.

This is just like when the FAA stopped collecting taxes for airfares in the US but the airlines forgot share the savings with the customers and profitted from it.

Typical excuses for a regulated market.

Govt plans to be clear by October

Govt plans to be clear by October

By The Nation
Published on August 19, 2011


Labour Ministry official ready to consider staggered raise over 3-4 years

How the government will implement its policy to raise the daily minimum wage to Bt300 will become clear by October, Labour Ministry permanent secretary Somkiat Chayasriwong said yesterday.

The top official did not rule out a request by the Federation of Thai Industries (FTI) to gradually lift the minimum wage step by step over three to four years.

"We are ready to listen to all sides," Somkiat said.

The Labour Ministry, he added, was now surveying wage rates across the country.

Somkiat said the Department of Skill Development (DSD), in the meantime, had been instructed to promote skill training by offering eServices to interested employers.

He said improved skills would make workers well qualified for a daily wage of at least Bt300.

At present, laws encourage employers to provide training for their workers/employees by giving tax benefits. Employers should be able to claim tax deductions of an amount two times of the training cost. However, due to complicated procedures, some employers have not organised the training, paying fines to the Skill Development Fund instead.

"To simplify procedures to claim tax deductions as part of training costs, the DSD will launch eServices on September 8," Somkiat said.

He said employers could also check out useful training courses at www.dsd.go.th, and register the courses they were going to provide to their employees/workers via the web site.

Jiyuan Wang, the International Labour Organisation's country office director for Thailand, Cambodia and Lao People's Democratic Republic, downplayed any concern that rising wages would worsen inflation.

He said it was inflation that was now putting pressure for higher wages.

He said Thailand's daily minimum wage had clearly not risen in line with the country's inflation rate during the past decade.

In 1995, wages accounted for 72 per cent of the country's total income. By 2006, they accounted for just 63 per cent of total income.

Wang also pointed out that the Gini coefficient of Thailand, a measure of inequality of income or wealth, was the highest in Asia.

"It's at 0.43," he said.

According to Wikipedia, Gini coefficients for income ranged from around 0.23 (Sweden) to 0.70 (Namibia) although not every country has been assessed.

Wang said although some economic sectors would offer less job opportunities if the minimum daily wage rose, workers would still be able to switch to other economic sectors.

"Higher wages will mean higher consumption. It will stimulate the country's economy too," he said.

Bangkok Post : Deal on wage hike reached

Deal on wage hike reached

• Published: 19/08/2011 at 12:24 PM
• Online news:

The government and private sector have reached an initial agreement on the implementation of the 300 baht daily minimum wage policy, Payungsak Chartsuthipol, chairman of the Federation of Thai Industries (FTI), said on Friday.

Representatives of the ministries of finance and labour and the Joint Private Committee on Commerce, Industry and Banking (JCCIB) on Thursday afternoon met to discuss the promised wage hike policy by the Pheu Thai party. The meeting was chaired by Commerce Minister Kittiratt Na-Ranong, who is in charge of economic matters.

Mr Payungsak said at this stage, the government agreed to the JCCIB’s proposal that the increase in daily minimum wage should be made step-by-step. The government admitted that if the labour cost is increased to 300 baht a day at one time, several industrial groups would be severely affected.

The agricultural product processing, food, textile, garment and electronics component industries are likely to suffer most, he added.

“The state agreed to once again bring this issue to the meeting of the tripartite wage committee for consideration.

The private sector proposed that the increase in minimum wage should be gradually done in four-year period in order to allow manufacturers to adapt themselves to the increasing labour cost.

The government accepted the proposal but will soon after this discuss the wage hike timeframe with the JCCIB,” said Mr Payungsak.

The FTI chairman insisted that the private sector has no objection on the wage hike policy and that any industry groups can raise the minimum wage immediately, if they are ready.

However, the government should also introduce measures to minimize effects of the increasing labour cost on the industry sector in the lone-run, particularly the labour intensive industries, he said.

Mr Kittiratt said the government would not try to force the private sector to comply with the wage hike policy and will come up with direct and indirect incentive offering scheme to help reduce the adverse effects of the new minimum wage policy.

Finance Minister Thirachai Phuvanartnaranubala the agreed initial agreement showed that the private sector support the wage hike policy of the government.

“After the policy statement making, I will invite the JCCIB for a meeting to discuss ways to raise the minimum wage with least impact on the private sector,” Mr Thirachai said.

Labour Minister Phadermcha Sasomsap took the same tone, saying after the delivery of government’s policy statement to parliament, scheduled for Aug 23 and 24, he would be able to provide more details on the wage hike timeframe.

Permanent secretary for labour and chairman of the Central Wage Committee Somkiat Chayasriwong said his ministry is now conducting a new round of survey on workers’ cost of living nationwide. The outcome is expected sometime in October and at that time there will have a clear conclusion on the new minimum wage plan.

Chairman of the Thai Labour Solidarity Committee Charlee Loysoong called on the government to nationwide raise the daily minimum wage to 300 baht within next January as promised.

He did not agree that the new minimum wage rate should be introduced only in Bangkok and nearby provinces as suggested by some parties.

Increase in daily minimum wage is hard to get and yet every worker hopes for it..

Captivating analysis.

Very good post.

Originally Posted by sabang

For over five years of the past decade, Thailand has only had a government preoccupied with struggling to maintain or justify it's own survival and tenure. The last year or so of the Thaksin administration was a time of trumped up civil unrest and disruption- with governance and reform brought to it's knees, the military Junta was laughably inept, the PPP government was never allowed to function before being drummed out of office, and then there were the Abhisit years. As a result, no government has been willing or able to focus on the several issues- very real and important issues- facing Thailand. Wages have stagnated, the rural sector has grown increasingly uncompetitive, wealth concentration predictably increased, and FDI has dropped markedly from the cracking pace being set in the late 90's and early noughties. Thailand has only gone backward in real terms, a stark contrast to it's neighbours. Thailand has rejoined the Phillipines as an Asian basket case, and the reasons why are very similar.

Addressing minimum wages is one thing, and will have somewhat predictable and necessary flow on effects in domestic consumption, investment and productivity. How it is introduced is indeed important, because on an industry specific basis there is bound to be some dislocation. Capital and knowledge intensive industries will shrug it off, because it is nothing to them. Low wage and labor intensive industries have some adjusting to do. At the end of the day though, we know exactly what to expect from the oligarchic sector that the Democrats owe their fealty to, being to delay and stymie it as much as they possibly can. The reason, quite simply, is naked and short sighted Greed.

It's a start, and an actual policy initiative that exceeds anything broached or considered during the stagnant, fractious Abhisit years. But there is much more to be addressed-

The rural sector is increasingly and hopelessly uncompetitive, because it is totally innefficient- and not just at the farm level. It desperately needs change- it is being propped up with unsustainable subsidies, even while indebtedness on the part of the average farmer is growing, and returns and wages are abysmal. Improving minimum 'official' wages will only make the plight of the small farmer worse in the short term actually.

The Thai Bureaucracy is a major drag on reform of any kind. They require more accountability, outside governance, promotion based on merit, and open hiring policies based on merit and diversity, rather than family and skin color. The 'Club' or cartel needs to be smashed, to call a spade a spade.

The educational sector patently does not meet the requirements of an emerging industrialised economy- in fact it is farcical, and that even extends to the so called prestigious alma maters. It urgently requires reform- I was in Cambodia a month ago and holy cow, the contrast in the people there I found hard to believe- yet fundamentally, they are the same people and their society faces several of the same problems and impediments. A lot of the reason for this lies with Bureacratic ineptitude and intransigence, but it is also systemic and self fulfilling- the people themselves do not believe in education, in a society where so much is determined by family and skin color, ones predetermined position on the ladder being much more important than merit. Cheating, skiving and corruption are rampant in a system where nobody fails, and 'success' is largely preordained. The Notebooks are a promising initiative, if implemented effectively.

Then theres the 'judiciary', innacountabilty, selective justice and impunity, rampant corruption and, underpinning it all, the entrenched attitudes of an insular, spectacularly greedy oligarchy.

Oh boy, a load of catching up to do just to get back to the starting gate. Take a deep breath. And there is a destructive cadre of existing privilege that will battle and attempt to stymie you every step of the way Thailand.

What good is the increase if the business community raises the prices to profit from the action. With their mentality you know it will happen.

Originally Posted by FailSafe

I heard from more than a few Thai business owners that they will avoid the pay increase by paying the social welfare taxes on the higher salaries (only a 3% bump) while continuing to pay their employees less than (the proposed new) minimum wage- that's something I would never consider doing, but I can see it being very hard for an employee to make a claim and follow it through to a successful conclusion as the government won't be too anxious to investigate if they are receiving their proper tax payment.

Games will be played, as always.

I consider it a plausible scenario that government will come across to meet the cost of wage increase, by reduction in social payments. Seem you have taken the law into your own hands. So will you be giving the money back? Thought so.

Originally Posted by Carrabow

What good is the increase if the business community raises the prices to profit from the action. With their mentality you know it will happen.

If you want to be given lesson 001 in economics or business science then it is on prepaid basis, money first.

Did you read my post?

Originally Posted by nostromo

Seem you have taken the law into your own hands.

Originally Posted by FailSafe

that's something I would never consider doing

Originally Posted by FailSafe

Did you read my post?

Originally Posted by nostromo

Seem you have taken the law into your own hands.

Originally Posted by FailSafe

that's something I would never consider doing

No, why?

Really, when you post something "your friend did" it is you

Originally Posted by nostromo

No, why?
Really, when you post something "your friend did" it is you

Brilliant deduction, numb-nuts.

I wouldn't do it as I would lose the trust and good relationship of my employees, which I rely on, but most of all I would never jeopardize my work permit and business status by taking such a stupid chance- the only people I spoke to who have mentioned considering doing it were Thai- believe what you want, but I haven't lied on this thread in any of my many posts- why would I start now? And if I actually planned to do something like that, I sure as hell wouldn't have mentioned it here.

And "if I actually planned to do something like that, I sure as hell wouldn't have mentioned it here"
Not a good point there, people are generally very stupid. Dont worry, I dont shop you, I dont consider you a serious criminal.

Wow- I used to give you a bit more credit (even with your moronic political rambling)- guess I misjudged you (and I believe I know your former nic now)- people are generally pretty stupid, you're right about that. I'll treat any further posts by you with all the respect and consideration they deserve.

Originally Posted by FailSafe

Wow- I used to give you a bit more credit (even with your moronic political rambling)- guess I misjudged you (and I believe I know your former nic now)- people are generally pretty stupid, you're right about that. I'll treat any further posts by you with all the respect and consideration they deserve.

I know. Today is not a day to make friends. Sorry if I made you feeling bad.