The Ministry of Labour’s Inspector-General and spokesperson Mr. Ananchai Uthaipatanacheep clarified the setting of minimum wages. He explained that the objective of minimum wages was a form of guarantee to workers to ensure sufficient income for the current economic and social state. The International Labour Organization has set minimum wages as a standard for labour protection, acting as a guideline on wages and workforce protection for member countries. Thailand has utilized the international framework, combined with other factors such as employee basics, living expenses and the equilibrium between the two for sustainable living. In addition to this are employer-related factors such as the ability to pay and business survival, whereas government-related factors included a balance between employer and employee gains, economic growth, the impact of wages on investment and general comparisons with other countries for example.
Mr. Ananchai explained that the minimum wages in each province would align with corresponding living expenses coupled with investment motivation in the region. These factors would be considered by provincial wage subcommittees, an effort to decentralize authority to each region, rather than centralizing a single center of authority. The implementation of a single minimum wage of 300 Baht nationwide in 2012 caused structural changes which resulted in direct economic impact. This was especially felt by exporters which complete with international players, of whom experienced no wage difference like Thailand. Thus the consideration of minimum wages must take many factors into account. This will fall under the responsibility of the Wage Committee, a trilateral organization comprising 5 representatives from the employee, employer and government side, in compliance with the Labour Protection Act B.E. 2541. Furthermore, authority has been decentralized to the regions for provincial wage subcommittees to consider suitable minimum wages to suit the economic and social conditions in each area. In addition to this, a special working group has been established to study and advise guidelines on setting minimum wages, which looks at the suitability of the guidelines and calculations on whether they meet international standards or not. In 2018, new calculation guidelines will be implemented using the Consumer Price Index (CPI) which measures fluctuations in price changes within 1 year, which links to living expenses. Calculations will also take into account the Gross Domestic Product (GDP) and Gross Provincial Product (GPP) which measures average economic growth over 5 years (2011-2015) as a platform for calculation.
“I’d like to emphasize that the minimum wages are set to guarantee unskilled workers upon employment, whereas the Ministry of Labour has formed separate framework for skilled workers to align with know-how and abilities. To date, the framework is applicable to 67 professions earning 800 Baht daily at the maximum with another 16 professions under consideration. If focus is given to skill standards, this will benefit the employee, employer and workforce as a whole in becoming a Thailand 4.0,” concluded Mr. Ananchai
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Bureau of Public Relations/
10 September 2017
