Minimal wage rises have failed to keep up with GDP growth with employees on the lowest rung in society getting only a 15-baht walk in the daily income in the last 10 years, according to a Thammasat University or college economist.
This may provide some financial relief for some workers, but it can be far from enough, according to Kiriya Kulkolkarn, a co-employee professor at Thammasat University’s Faculty associated with Economics.
Low-income earners are more vulnerable to the effect of inflation compared to higher-income workers.
Last 30 days, the national income committee finalised hikes in the daily minimum wage by an average of 5. 02% as well as the new rates, including a hike of 22 baht within Bangkok and its around provinces, are expected to take effect next month.
Boonchob Suthamanaswong, permanent secretary meant for labour, said earlier that a tripartite panel reviewing hikes within the minimum daily income agreed to bump them up to between 328 baht and 354 baht, which differs from province to province.
Yesterday, Ms Kiriya noted the new prices were helpful to day-to-day wage earners to a certain extent, but they still fall short since inflation is definitely soaring at 7%.
The lady said the poor invest 45% of their earnings on food while food bills for your richer amount to 27% of income. This goes to show high pumpiing hits the poor harder than those who make more.
In the last 10 years, the poor have seen their daily wage rise simply by an average of 15 baht, barely pushing upward from 318 baht on average to 333 baht.
“If you grow that by the number of days in a month they are paid and by 12 months, their income hike comes down to 3 or more, 960 baht per year or a 4. 7% increase.
“But the country’s Gross Domestic Product (GDP) over the past ten years has grown 20%, outstripping low-income workers’ wage rises, ” the particular economist said, incorporating the figures reflect discrepancies and the hard life many of the poorest low-income workers are usually facing.
Ms Kiriya stated the 5% income increase would not perform much to worsen inflation since there are other factors involved.
In reality, workers ought to get paid more than the daily wage prices set by the authorities, which are not enough in order to sustain a decent sustenance, she said.