Minimum wage hike to increase purchasing power and improve economy

Published on April 1, 2012 by TFP   ·   No Comments

BANGKOK, 1 April 2012 – Permanent Secretary for Labour Dr. Somkiat Chayasriwong has commented that the minimum wage hike policy, which has entered into force today, will increase the public’s purchasing power and improve the country’s economy in the long run.

With the implementation of the minimum wage increase, labour wage in all provinces across the country increases by 39.5% from the usual provincial rate, except 7 provinces, namely Bangkok, Nonthaburi, Pathum Thani, Nakhon Pathom, Samut Prakan, Samut Sakhon and Phuket, where the minimum daily wage will go up to 300 baht. Targeting to elevate the income of the country’s labour workforce, the government policy will produce more positive results than negative ones.

Dr. Somkiat went on to say that the cost of living is currently on the rise. If the minimum wage remained at the same level, the money that should have been circulated in the system might be less than it should be. On the contrary, a higher income will contribute to a higher purchasing power, which will encourage the consumption of commodity goods. Even though entrepreneurs may feel impacted during the transition period, money will eventually flow back to them in the future. However, he urges that those who still have doubts concerning the policy or face financial obstacles to implement it, should consult provincial labour offices throughout the country.

With the exception of the seven pilot provinces mentioned above, the 300-baht minimum wage will be applied to the rest of the country starting on 1 January 2013. However, it will depend on the results of implementation in the pilot provinces as well as the economic volatility.

(NNT : suwit)


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