Tag Archive: minimum

  1. Approved minimum wage increase in Thailand

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    The wages council agreed to set a new minimum wage, which came into effect from April 1, 2018. The wage adjustment in 2018 is divided into 7 levels as follows;



    Mr. Chakkarin, Permanent Secretary of Ministry of Labour, also made three additional proposals as follows;

    1. Businesses with more than 50 employees must fix employees’ salary structure and guarantee that the wage will be raised every year.
    2. The floating salary rates must be fixed as per the needs of operators in the area. There will be a pilot project in the Eastern Seaboard Economic Zone or EEC which are Chonburi, Rayong and Chachoengsao. This is designed to facilitate workplaces investing in skilled workers.
    3. Prescription of tax incentives for operators who will have incur a higher cost of hiring labor. The rate that can be deducted from tax is 1.5 times

    These mentioned proposals must also be re-examined by the new Wages Council.

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  2. The daily minimum wage in Thailand increases in 2017

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    Starting from 1 January 2017, the daily minimum wage in Thailand will increase by 1.7% to 3.3% (amount depending on province) in most provinces of Thailand. This increase has been approved by Central Wage Committee on 19 October 2016.

    ML Puntrik Smiti, Labour Ministry permanent secretary, stated that eight provinces will maintain a minimum salary of 300 THB, including Trang, Ranong, Sing Buri, Nakhon Si Thammarat, Narathiwat, Pattani, Yala and Chumphon Province. However, the minimum wage in Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon, Phuket, Nakhon Pathom and Bangkok will increase by 10 THB (to 310 THB or 8.8 USD per day), by 8 THB (to 308 THB or 8.7 USD per day) in 13 other provinces and by 5 THB (to 305 THB or 8.6 USD per day) in other 49 provinces. The committee will submit its resolution to General Sirichai Distakul, Minister of Labour, then will forward it to the Cabinet.

    The increase complies with the regulation of Labour Protection Act by considering 10 factors of Costs of Living, Inflation, Cost of Production, Price of Production, Production Ability, Standard of Living, Product and Service Price, Business Ability, Gross Domestic Product and Economic and Social Conditions.

    The Federation of Thai Industries deemed that increases in the minimum wages should vary in each province. The employers are expected to be agreeable to the proposed increases. Anyway, a suitable time schedule needs to be considered as the economic recovery is not yet certain. While the increase may have an impact on small and medium enterprises, employers would be able to adjust to the new figures as there have been no increases in the past three years said Chen Namchaisiri, chairman of the Federation of Thai Industries.

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