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New daily minimum wage varied by economy, region may replace the 300-baht wage next year

New daily minimum wage varied by economy, region may replace the 300-baht wage next year

BANGKOK: The 300-baht daily minimum wage which was in force across the country since 1 January 2013 may be replaced with a new minimum wage which will vary by economy and cost of living of each province and region.

agricultureconstructioneconomics
By Thailand PBS

Sunday 7 June 2015 08:21 AM


Thailand's industrial sector has long depended on cheap labour that enable wide margins for investors at the top of the pyramid. Photo: Josh Jackson

Thailand's industrial sector has long depended on cheap labour that enable wide margins for investors at the top of the pyramid. Photo: Josh Jackson

This was the agreement reached at a seminar in Bangkok to debate the minimum wage and formulate guidelines to propose the new rate for next year.

The seminar was hosted by the Ministry of Labour.

Attendants comprised representatives from the ministry, Wage Committee, provincial wage committees, employers and employees associations

The seminar agreed that the minimum wage for next year be adjusted and must vary by economy and cost of living in each province and region. Above all it must be adjusted  with regard to the impact it will have on the overall  economy of the country.

The ministry’s permanent secretary Mr Nakorn Silpa-archa said it was agreed that wage subcommittees in each province will submit the new rate for next year to the national wage committee by this month so that it could study and set the new rates by October to propose to the government for endorsement.

The subcommittees are given several guidelines for their consideration to set their own rates. They include floating rate, rate that vary by economic development in 18 groups of provinces, by industries, and by combination of multi factors, he said.

The ministry also has floated the idea of floating rates at the seminar, he said.

In conclusion the new minimum wage will vary by economy of each province, and cost of  living, and above all it must not tie to politics because any adjustment will have broad impact on factories, employment and national  economy, he said.

Moreover he said labour must also improve their skills so as to enable employers to accept their skills and are willing to increase their wages.

But he said it was undecided whether the daily minimum wage will be higher but the national wage committee had  decided on Dec 8, 2014 to reinstate the old rate system where wages vary by the cost of living and the economy of each province.

He also said the rate change will increase Thailand’s competitiveness and employment rates, and would also  improve the living conditions of workers and reduce wage disparities, According to Bangkok Post.

Earlier in March this year, a 360-baht minimum wage was proposed by the Thai Labour Solidarity Committee  after a 2015 survey found the cost of living of workers almost doubled from 2013.

The Yingluck government introduced a 300-baht minimum wage nationwide in 2013 amid strong opposition by employers who said the country’s competitiveness would be undermined.

But it was contended by the regime that the minimum wage has not been raised for years.

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