Thailand to raise minimum wage to Bt300 early next year

Thailand to raise minimum wage to Bt300 early next year

July 6, 2011
Boris Sullivan

Thailand’s election-winning Pheu Thai Party announced Wednesday that it expects to raise the daily minimum wage for workers nationwide to Bt300, or US$10 as early as January next year, as promised in its election campaign.

Pheu Thai Party Secretary-General Jarupong Ruangsuwan made the announcement amid growing public attention to the implementation of the partys economic policy after it announced its plan to form a new government with four smaller parties for a total of 299 votes in parliament.
contruction workers Bangkok

Pheu Thai Party announced Wednesday that it expects to raise the daily minimum wage for workers nationwide to Bt300

The Pheu Thai Party earlier promoted raising the minimum wage of workers across the country to Bt300 per day and starting a minimum salary for new graduates from Bt15,000 per month, campaign promises which are believed to have drawn a large number of votes for the party in Sunday’s election.Mr Jarupong said the Pheu Thai-led government will raise the minimum salary per month to Bt15,000 $500 for civil servants and state enterprise employees this October, while a minimum daily wage hike is expected to begin in January 2012, as the government must talks with the private sector first.

The wage increase will be put into effect after the government creates better understanding on the matter with the private sector and finds appropriate solutions for them such as a corporate income tax reduction and provision of new export markets, according to Mr Jarupong.”The policy on minimum wage rise to Bt300 per day is aimed at helping grassroots people. We affirm that this policy will be equally implemented in every province,” Mr Jarupong promised.

via New government set to raise daily minimum wage to Bt300 early next year.

Previously, The daily minimum wage in Bangkok and surrounding areas has been raised to 215 baht.

The raise, which amounts to an increase of 6.7% on average, was considered a big jump in jan. 2011

The increase took the average minimum wage to 176.3 baht a day, said Somkiat Chayasriwong, the permanent secretary for labour and chairman of the wage committee.

Mr Somkiat attributed the raise to the government’s policy to reduce disparity in society.

The Social Security Office says about 2 million Thai workers and 2 million migrant workers will benefit from the increase.

The raise for Thai workers adds more than 6.92 billion baht to the national payroll, while the increase for migrant workers adds up to more than 7.78 billion baht.

The increase will boost the purchasing power of the 4 million workers by 14.69 billion baht.

The increase of 17 baht in the minimum wage in Phuket, from 204 baht to 221 baht, is the highest in the country.

The minimum wages in Bangkok and nearby provinces were put on an equal footing of 215 baht a day.

The minimum wage in Bangkok and Samut Prakan was raised by nine baht from 206 baht. In Nakhon Pathom, Pathum Thani, Samut Sakhon and Nonthaburi, it was increased by 10 baht from 205 baht.

The size of the work force in Thailand now exceeds 38.24 million (2009 est.), with the majority of the workforce under 35 years of age. Each year about 800,000 people join this force. Many standard labor practices apply, including mandatory severance packages, and overtime payments for work in excess of

The minimum wage in Thailand is currently 206 baht per day in Bangkok and slightly less in the provinces. While not the lowest labor market in the region, Thailand’s workforce is among the most cost-efficient in the world, as they have earned a reputation for diligence and adaptability.

2010 Minimum Daily Wage
Baht Area
206 Bangkok and Samut Prakan
205 Nakorn Pratom, Nonthaburi, Pathum Thani and Samut Sakhon
204 Phuket
184 Chonburi and Saraburi
181 Ayutthaya
180 Chachoengsao
178 Rayong
173 Nakhon Ratchasima, Pang-nga and Ranong
171 Chiang Mai
170 Krabi, Prachinburi and Lopburi
169 Kanchanaburi
168 Petchaburi
167 Chantaburi and Ratchaburi
165 Singhaburi and Angthong
164 Prachaub Khiri Khan
163 Loei, Samut Songcram and Sa Kaeo
162 Trang
161 Songkhla
160 Chumporn, Trat, Nakhon Nayok, Narathiwat, Yala, Lamphun and Ubon Ratchatani
159 Nakhon Si Thammarat, Pattani, Pattalung, Satun,Surat Tthani, Nong Khai and Udon Thani
158 Kamphaeng Phet, Chai Nnat, Nakhon Sawan, Suphanburi and Uthai Thani
157 Kalasin, Khon Kaen, Chaing Rai, Buri Ram, Yasothon, Roi-et and Sakhon Nakhon
156 Chaiyaphum, Lampang and Nong Bua Lamphoo
155 Nakhon Phanom, Phetchabun, Mukgdahan and Amnat Charoen
154 Maha Sarakham
153 Tak, Phitsanulok, Sukothai, Surin and Uttraradit
152 Nan and Si Saket
151 Payao, Pichit, Phrae and Mae Hong Son

Source: Ministry of Labor, as of January 2010