Another wage hike looms

Another wage hike looms
Employees organize a demonstration to require a significantly higher minimum wage boost as of May 1 of last year. ( Photo: Wichan Charoenkiatpakul )

According to the Employers ‘ Confederation of Thai Trade and Industry ( EconThai ), the tripartite wage committee is expected to approve a second increase for the minimum daily wage this month.

Thanit Sorat, sin- head of EconThai, said the council, which comprises the authorities, employers and employees, is scheduled to meet on March 26.

This comes after a Feb. 27 meeting where a calculation was approved that may result in a 1.5 % increase over the past wage increase, he said. Components used to determine the minimum wage include workers performance, GDP and prices.

According to Mr. Thanit, if the 1.5 % increase is approved, overall pay will increase marginally, but the minimum daily income will remain below 400 baht. However, the number is acceptable to both employers and employees, he said.

The most recent increase of 2.37 % on average, or 2- 16 baht a moment, took effect on Jan 1.

Mr. Thanit stated that the commission is taking into account the Labour Ministry’s request for a provincial level raise. This will also be considered at the approaching meet, he said.

The government has announced it will increase the maximum regular salary to 400 ringgit this year, according to a supply at the Federation of Thai Industries (FTI).

Following the increase in January, minimum wage workers in Phuket then earn the government’s highest level of 370 ringgit a moment.

The source said the second hike, initially planned for next month, would burden business operators, especially small and medium- sized enterprises ( SMEs ), despite the relatively small increment. According to the source, the government does introduce stimulus measures more than increase wages once more.