Thailand raises minimum wage 40% despite industry pleas

Thailand raises minimum wage 40% despite industry pleas.

The Thai government is pushing ahead with a big rise in the minimum wage, despite appeals from industry to shelve the plan to help companies cope with financial losses after the worst floods in half a century devastated parts of the country. Flooding has killed at least 307 people since late July, damaged large areas of farmland and closed half a dozen large industrial estates this month at a potential cost of 1,7% of gross domestic product.
At a meeting of a tripartite wage committee yesterday, employers were outvoted by the state and worker representatives and a minimum daily wage of 300 baht ($9,70) was set for Bangkok and six other relatively well-off provinces, an increase of about 40%. "This will be effective on April 1 2012 because of the flooding," said Labour Ministry permanent secretary Somkiat Chayasriwong . Thailand’s other 77 provinces will also get a rise of 40%, but that will leave the minimum below 300 baht.

A rise in the minimum wage to a uniform 300 baht around the country was one of the main policies of the party of Prime Minister Yingluck Shinawatra in July’s election. It would have meant an increase of 90% in some poorer areas.

A 300 baht daily wage is five times higher than the minimum in Vietnam and 2,5-4,6 times that in Indonesia, according to Kasikorn Research Centre. A rice-based meal for one person costs about 37 baht from a Bangkok street vendor.