Wage Hike A Concern For Firms

This April, the minimum daily wage will undergo a hike therefore affecting many top private companies. The FTA which is short for Federation of Thai SMEs Association said that these companies including new hotel in Rayong have sent the government their request regarding putting in place a remedial process in order for the hike to have lesser impact on their business.

Noppong Teeravorn, the president, said that they wanted to keep track of the negative effects of the hike to businesses both small and medium which they believe will need between one and two months before they can be determined.

He added that the FTA is hoping that the increase on minimum wage will not have a big and negative impact with regards to the SME industry.

The increase on the daily minimum wage was decided by the cabinet before January ended. It was then endorsed on a national level and the hike will be between 5 and 22 baht.

The highest wage hike will be imposed in areas of Rayong, Phuket and Chon Buri.

The increase was determined by the economic expansion of Thailad ad the total inflation rate of the country which is at 0.4 per cent.

According to Federation of Thai Industries’ vice of chair, Kreingkrai Thiennukul, the private industries are not concerned about the wage hike because the rate is acceptable for them. It was also a decision that went to the national tripartite committee before it was given approval.

He explained that the FTI is in agreement with the wage hike because the new maximum rate will move up to 325 baht daily while the existing wage per day is between 305 and 310 baht.

Furthermore, the FTI is not worried regarding the labour shortage when it comes to the industrial sector because the Labour Ministry has already announced that 59,217 workers from other countries were found to be not legally staying in the country. They are going to be deported because they were not able to register before March as per the recent labour law.

Some of these migrant workers are employed in the new hotel in Rayong while the numbers of local workers is about 38 million.