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9 Dec 2010

Thai Economy

Minimum Wage Hike: Benefits of Workers, Challenges to Government & Private Sectors (Business Brief No.3003)

คะแนนเฉลี่ย
On December 9, 2010, the Central Wage Committee approved increases in minimum wage levels by an average of THB11, rising approximately 5.3 percent (slightly higher than the inflation rate), so this adjustment will satisfy all workers nationwide, particularly when they are currently facing higher costs of living in the prices for many consumer goods that have recently risen in line with higher production costs. Higher incomes should help improve the quality of life for workers. In addition, the government plans to improve welfare benefits for all workers, particularly informal workers, because they cannot yet easily access benefits, such as medical services and compensation during illness.

However, the government and business sectors may face greater challenges due to these increases in the future. Over the short-term, problems such as shortages of workers and the cost of labor in Thailand that is higher than some other countries in the region should be monitored. To maintain our competitiveness, we need to focus on higher productivity, so the government should plan proactive strategies to increase the supply of skilled workers to meet labor market demand. This may be achieved by developing knowledge resources relevant to innovations and high technology to bolster the competence of our labor force. Over the middle- to long-terms, relevant parties should devise more attractive worker benefits to maintain both our government and private sector workers, which would help prevent labor migration to foreign countries after the AEC becomes effective in 2015. We should also brace for the entry of foreign workers after liberalization that may seek employment in some Thai occupational fields.

Thai Economy