Wage rise for select regions

Wage rise for select regions

Panel agrees on 400 baht normal required

Wage rise for select regions
Lunchboxes are consumed by design personnel in Bangkok’s main business district. ( File photo: Pornprom Satrabhaya )

The bilateral pay committee approved a new minimum wage increase of 400 baht per day for some provinces on April 13th.

Pairoj Chotikasathien, continuous director for the Labour Ministry and chairman of the committee, said the wage hike did use to tourism- relevant businesses and four- star hotels with at least 50 employees.

The council consists of representatives from the authorities, employers and employees.

The hike will be applied to Bangkok’s Pathumwan and Watthana districts, Chiang Mai’s Nakhon Chiang Mai town, all of Phuket, the place under the authority of tambon Ao Nang operational company in Krabi, Songkhla’s Hat Yai city, Surat Thani’s Koh Samui area, Phangnga’s tambon Khuk Khak city, Pattaya City in Chon Buri, Prachuap Khiri Khan’s Hua Hin city, and Rayong’s tambon Ban Phae.

According to Mr. Pairoj, the bilateral council will also take into account additional wage increases for employees in logistics and export companies.

The fresh wage increase may be announced in the Royal Gazette on April 2 and will be announced as a result, according to Labour Minister Phiphat Ratchakitprakarn.

The minister claimed that the new salary increase is intended as a present on the situation of the Songkran event in April, the Thai New Year.

A research on the possibility of raising rates for some provinces and job types was approved by the pay committee on February 27. To collect information from companies and employers in the 10 provinces with great tourism industry incomes, a survey was conducted.

Elements used to determine the minimum wage include workers performance, GDP and prices.

The normal minimum wage for Thai employees global rose on Jan 1, with the new rates varying between provinces, ranging from 330 to 370 baht, according to the bilateral compensation committee.

Before Jan 1, the rates were between 328 and 354 baht. The increases range from 2 to 16 baht, or an average of 2.37 %.

A wage review is typically determined based on the economic growth rate, inflation, and the cost of living over the past five years, according to Mr. Phiphat.

He did point out that the wage rate calculation was unfair to workers because it took into account the Covid- 19 pandemic’s low economic growth rate in 2020- 2021. He claimed that the economic circumstances surrounding the outbreak should n’t be taken into account when calculating.

The Pheu Thai Party promised a 400- baht rate during its election campaign earlier last year, which rattled businesses, which said it threatened to make the country less competitive.

A source at the Federation of Thai Industries said the new hike, planned for next month, would burden business operators, especially small and medium- sized enterprises, despite the relatively small increment. According to the source, the government should implement stimulus measures rather than increase wages.