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Government Ministers in Thailand Squabble Over $11 Daily Wage

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Government Ministers in Thailand Squabble Over $11 Daily Wage

Thailand’s Prime Minister and the national wage committee are at loggerheads over his proposal to boost the minimum daily salary to 400 baht ($11.00) nationwide. The committee says it won’t bow to political pressure.

The fight comes after Prime Minister Srettha Thavisin announced on Tuesday that the rise would take effect in either September or October. The committee, however, argues that it has not reached a conclusion and will not be swayed by political influence.

He said on Facebook that the cabinet had accepted the Ministry of Labor’s proposal, and that the rise would take effect by October at the latest.

According to Labour Minister Phiphat Ratchakitprakarn, the hike will have an impact on small and medium-sized businesses, and the government will consider support measures such as tax reductions. He stated that the ministry is ready to hear feedback from affected employers in order to discover methods to assist them.

The current minimum salary ranges from 330 to 370 baht, depending on province. A 400-baht minimum is now in place in portions of ten provinces, although it only applies to tourism-related enterprises and four-star hotels employing at least 50 people.

Mr Phiphat acknowledged that 400 baht per day was still less than the minimum wage in Indonesia and Malaysia.

Malaysia’s daily minimum is 448 baht for a six-day work week and 538 baht for a five-day work week.

In Indonesia, monthly minimum salaries vary by province, ranging from 4,637 baht to 11,536 baht. This equates to 185 to 461 baht a day throughout a month with 25 working days.

According to Deputy Government Spokesman Karom Phonphonklang, the national wage committee plans to announce the pay raise in the Royal Gazette in September or October.

He stated that the committee will meet with the Federation of Thai Industries and the Thai Chamber of Commerce by the end of the month to discuss the impact of the wage increase on enterprises.

The tripartite committee, which is independent of the government by law, met on Tuesday to examine the plan but could not reach a decision. It consists of representatives from the government, employers, and employees.

Speaking thereafter, Pairoj Chotikasathien, permanent secretary to the Labour Ministry and committee chairman, stated that it was not a political tool.

It directed its provincial subcommittees around the country to assess the appropriate wage rates in each province, the business kinds to which they should apply, and whether they agree to an increase to 400 baht in October. Mr Pairoj said the information must be provided to the salary committee by the end of July.

The wage committee’s decisions cannot be overruled [by any lawmaker]. It makes judgments based on economic situations, inflation, and local consumer goods prices. The conditions vary per province.

“Some small and-medium-sized enterprises and retail businesses may not be ready for the wage hike,” said Mr. Pairoj. “The provincial wage subcommittees will present the information and recommendations to the main committee for a final decision.”

Debt Clinics See a 43% Increase in Applications as Household Debt Soars in Thailand

Debt Clinics See a 43% Increase in Applications as Household Debt Soars in Thailand

Thailand’s Household Debt

Thailand’s household debt is predicted to climb dramatically by 2024 as a result of economic uncertainty and inflationary pressures. The pandemic’s aftermath, combined with global supply chain disruptions and increased living costs, may burden many Thai families’ finances.

Experts warn that lower-income households may struggle to manage their debts, thereby increasing loan defaults and credit concerns for lenders.

To reduce this danger, authorities are considering initiatives to encourage financial literacy, control predatory lending practices, and offer debt relief programs to vulnerable groups.

However, adopting effective remedies remains difficult, as policymakers must strike a balance between aiding households and ensuring general economic stability. Proactive measures are required to avoid a vicious cycle of over indebtedness and its economic consequences.

According to the IIF research, Thailand’s household debt in the fourth quarter of 2023 was 91.6% of the country’s GDP, or roughly equivalent to the whole economy. This was the highest household debt ratio among Southeast Asian nations.

 

The CTNNews editorial team comprises seasoned journalists and writers dedicated to delivering accurate, timely news coverage. They possess a deep understanding of current events, ensuring insightful analysis. With their expertise, the team crafts compelling stories that resonate with readers, keeping them informed on global happenings.

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