THAILAND: Employers across the Kingdom are lining up against a new proposal for a minimum wage hike, amidst Thailand’s worst levels of worker debts in 14 years.
The employers reacted negatively to the recent recommendation by the Thai Labour Solidarity Committee and the State Enterprises Workers’ Relations Confederation, which would provide a nationwide new daily minimum salary of THB 492 (USD 14).
Presently, minimum daily wages are from THB 313 (USD 9) to THB 336 (USD 10), varying from state to state. Bangkok, the capital, implements a THB 331 baht (USD 9.70) minimum daily wage.
More than 40 employer associations urged the Labour Minister to push back the proposal.
The Employers’ Confederation of Thailand said that the present pandemic economy and the Russia-Ukraine war do not present suitable conditions for a wage increase.
The Thai Labour Minister explained that the national tripartite wage committee will consider the wage increase, and the local wage committees will review the issue. He added that a final decision was expected in September.
Thailand is suffering from severe economic stress as prices of diesel, pork, and postal services have jumped recently.
According to the University of the Thai Chamber of Commerce, a worker’s household has an average debt of THB 217,000 (USD 6400) in 2022, a 14-year high.