The tri-partite Wage Committee has approved, by a vote of 7:5, a new formula for the calculation of minimum wages, which is tentatively expected to come into force in April, initially in Bangkok and nine other provinces.
The new formula will factor in labour productivity, labour’s contribution to production, the inflation rate, the number of months since the last wage adjustment and the economic situation in each area.
Labour Permanent Secretary Pairoj Chotikasathien said yesterday that the new formula will be sent to all provinces, so they can gauge the opinions of entrepreneurs and labour representatives.
The ten places where the new minimum wages will come into effect first are Bangkok, Phuket, Chon Buri, Chiang Mai, Surat Thani, Krabi, Songkhla, Phang-nga, Prachuap Khiri Khan and Rayong.
Pairoj said that the wage committees in those locations must submit their proposed minimum wage rates to the Wage Committee, which is due to meet on March 24th, so that theycan become enforceable in April.
He declined, however, to commit as to whether the new wage will be a minimum of 400 baht, noting that the wages in each province depend on their economic situation and on the types of jobs.
Atthayut Leeyavanich, a representative of employers on the Wage Committee, said that small and medium-sized enterprises (SMEs) are worried about the wage increase and hope that the adjustments are appropriate and reasonable.
A labour representative on the committee, meanwhile, said he found the new formula fair and reasonable, adding that he has no idea by how much the minimum wage will be increased.
