Thailand minimum wage hike policy

Studies show that minimum wage hike policy for 2012 has posed no effect on Thailand’s overall economy, indicated by low unemployment rate and a small number of layoff, while business owners have been able to adjust themselves well for the minimum wage hike. Therefore, it is expected that the minimum wage hike in 2013 will help decrease the poverty gap among Thai people, and heighten workers’ quality of lives. Such assistance measures will be prepared to help business owners and workers who are affected by the minimum wage hike policy.

As the nationwide minimum wage will be adjusted to 300 Baht per day on January 2013, it will be greatly beneficial to workers. The wage hike will help improve their quality of lives, narrow economic inequality among Thai population and promote fair income redistribution. However, the policy might have some impacts on business operators and investors but the Thai Ministry of Labor and concerned agencies have already come up with assistance measures for business operators, which include reducing labor cost, heightening labor productivity, improving employment service, preventing layoff problems and introducing financial measures – including measures to promote liquidity in enterprises and tax-incentive measures to promote SMEs’ productivity. Efforts will also be made to monitor any impact on business enterprises as well as to promote good relations between employers and employees. In case of any layoff caused by the minimum wage hike policy, the Ministry will work to ensure that workers receive benefits they are entitled for under labor protection laws. It will also help affected workers find a new job, improve their skills, or enable them to perform self employed jobs.

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