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Discussion Starter · #1 · (Edited)


Wages/salary rates are a hot topic right now, with the new Government having pledged to raise the adult minimum wage to 300 baht per day (at today's rates 6.23GBP, US$9.88) - at present it varies by province - some examples:

  • Phuket, 221 baht, is the highest in the country
  • Bangkok and nearby provinces were put on an equal footing of 215 baht a day
  • Nakhon Pathom, Pathum Thani, Samut Sakhon and Nonthaburi, 205 baht a day.
  • Chantaburi and Ratchaburi, 167 a day
  • Payao, Pichit, Phrae and Mae Hong Son, 151 a day

(Source for figures, and full list of provinces at Thailand Business News)


Thailand to raise minimum wage to Bt300 early next year
JULY 6, 2011

Thailand’s election-winning Pheu Thai Party announced Wednesday that it expects to raise the daily minimum wage for workers nationwide to Bt300, or US$10 as early as January next year, as promised in its election campaign.

The Pheu Thai Party earlier promoted raising the minimum wage of workers across the country to Bt300 per day and starting a minimum salary for new graduates from Bt15,000 per month.
 

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Discussion Starter · #2 ·
(edited from)

Starting salaries of 15,000 a month?
11/07/2011

Are 15,000 baht per month starting salaries for all new university graduates really possible or is this just a dream?


In the photo, young people check job listings online at the Bangkok Career Expo 2011 held on Friday and Saturday at the Queen Sirikit National Convention Center in Bangkok

A starting salary of 15,000 baht a month is an appealing prospect for a young university graduate. But most entry-level jobs now pay far less - between 9,000 and 12,000 baht on average - and both job-seekers and employers don't see salaries rising any time soon.

At the recent Bangkok Career Expo 2011, interviews with 83 participants indicated that the new Pheu Thai government would not find it easy to make good on one of its most high-profile election promises.

From the standpoint of employers, if starting salaries are regulated, businesses would have to adjust their salary scales across the board, resulting in higher costs and potentially affecting the competitiveness of their businesses and of the country.

Pavorn Maleehom, a human resources officer with Tesco Lotus, believes salary should depend on work experience. The average starting salary at the hypermarket chain is currently 13,000 baht - it was just increased from 12,000 baht last month.

"We think it would be difficult to follow the proposed policy," said Mr Pavorn. "It's not just a case of offering a new salary base to new bachelor's degree holders. We would have to adjust the rates for the majority of our staff. So we have no idea how the policy could be implemented next year.

Young job seekers, while encouraged by the possibility of earning more, were equally sceptical about the Pheu Thai promise materialising.

"I'm looking for a job related to financial accounting. As I talk with many companies here, the average salary for new bachelor's degree holders is about 10,000 to 12,000 baht. My friends and I will accept the offers and we have a forlorn hope of getting 15,000 baht as promised by the new government," said Nuchaporn Songsiri, who will graduate from Siam University in two months.

Maybe in five or 10 years a salary of 15,000 baht would be practical, she added with a smile.

A law student at Thammasat University said she believed 15,000 baht was appropriate given the current cost of living, but that no employer could offer such an attractive salary.

"I think 12,000 baht per month can be possible for us. We have no experience. If we request a high salary, it will be difficult to find a job," she said.

Pawarisa Bunnut, a recent Liberal Arts graduate from Rangsit University, said she expected a monthly salary of 15,000 baht.

Piyamitn Rangsitienchai, chief executive at the local recruitment firm Prompt Professional Resources & Services, said salaries of 15,000 baht were up to 50% higher than current average levels. "If the private sector was forced to pay such a high rate, employers may change to hiring more freelancers rather than paying salaries for a whole month to employees whose working days are not 30 days in each month," he said.

Full article here
 

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Discussion Starter · #3 ·
some edits here from this article B15,000 salary warps pay scale, gives some details of what gov't employees earn:

16 July 2011
  • The starting salary for civil servants is now 8,700 baht a month, plus a 3,000- baht cost of living allowance
  • There are 1.79 million civil servants, 229,000 of whom earn less than 15,000 baht a month. If the policy is implemented, the fiscal budget for the civil service would need to be increased by 15.2 billion baht. For fiscal 2011, the civil service salary budget was 614 billion baht or 30% of total state expenditure.
  • Another concern is that once new civil servants are paid more, state enterprise employees will seek raises because their starting salary is 13,000 baht.
 

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You never cease to amaze me with your wealth of knowledge Song-Si.

Keep up the posting as it makes for interesting reading.

If you ever get bored and want to move on, i would like to connect a lead to your brain so i can down load the info:)
 

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You never cease to amaze me with your wealth of knowledge Song-Si.

Keep up the posting as it makes for interesting reading.

If you ever get bored and want to move on, i would like to connect a lead to your brain so i can down load the info:)
I'm next in the queue...
 

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Discussion Starter · #6 · (Edited)
I've been posting this info to give potential expats here an idea of the local economy and wage structure, and maybe remove expectations of coming here and making their fortune!

Some trades wages info from today's news

******​

Permanent secretary for labour Somkiart Chayasriwong said the new wage rates would be enforced tomorrow for skilled labourers in the 11 job categories. The regulation requires enterprises to base their pay rates based on workers' skill groupings.

The wage rates vary across different fields as well as within certain fields, while workers are classified according to their abilities, said the Labour Ministry.

Car engine repair workers get lower wages than car painters and car reshapers. Level 1 car engine repairmen are entitled to 275 baht a day, at Level 2 360 baht and 445 baht for Level 3, while Level 1 car painters start on 315 baht, Level 2 gets 380 baht and Level 3 445 baht. Car reshaping workers get the highest salaries in the group. Level 1 workers are entitled to 335 baht, Level 2 420 baht and Level 3 505 baht.

There are two skill levels for cooking Thai food and western spa workers.

Level 1 Thai cooks get 280 baht and Level 2 360 baht, while Level 1 western spa workers get 350 baht and Level 2 are paid 460 baht.

Level 1 Thai masseurs and masseuses are paid 310 baht, Level 2 410 baht and Level 3 510 baht a day.

Workers in the electricity and electrical appliance repair areas get 300 baht for Level 1, 400 baht for Level 2 and 500 baht for Level 3.

Currently, the daily minimum wage for all types of workers varies by province, from a low of 159 baht up to 221 baht.

full article here
 

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Increased productivity?

The expectation is that with increasing salaries that there will be an increase in productivity. Correct me if I am wrong but shouldn't be the other way around?
When productivity increase salaries should rise.
 

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Discussion Starter · #8 ·
Increased productivity?

No. This was about a political party promising to raise the living standards of people living in, or near, poverty levels. I don't believe there was much consultation with eg major manufacturers before the election was held.
There seems to be an expectation that employers can afford it, of course the concept appealed to the many voters in the 150-200b per day wages range . . . now it seems less and less likely to be implemented in the near future, especially not in the 90-day timeframe mentioned pre-election.

article in The Nation today

Minimum wage proposal causing great anxiety
 

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Discussion Starter · #9 ·
meanwhile, across the border in Cambodia, highlighting the different economies of bordering countries, an article from Phnom Penh Post about a new police recruit, including some salary info:

“I’m new to the police and my base salary [paid once a month] is 200,000 riel [about US$50],” explains one of the youngest members of the squad, who says he joined the police after reading a job announcement from the Ministry of Interior. The officers say it is common for police to also work as motodops or taxi drivers because their salaries are low and the second job helps to support their families.

“It’s getting a bit better,” one policeman says, citing a policy that began in 2008 where the wage doubles after the first year of service.​

in comparison, I understand a new police recruit in Thailand starts on 12,000b a month (US $400)
 

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Yes the back peddling had already started on this election promise the day after the win. As the officials say they are clarifying the policy details. It is already been said the 300 baht will be now in only some areas in Thailand only and by now they say it will be implemented around the new years.

It seems that people believe the minimum wage is for all employees, it is just for company with dozens of workers. So is designed to effect western and large companies mostly and the companies where not consulted before the promise was made. But what do they say all political promises are made to be broken, ask Mr. Obama which ones he kept.
 

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Discussion Starter · #11 ·
Salary lift to begin with civil servants

Salary lift to begin with civil servants
2 Sept 2011

Low-ranking civil servants holding university degrees will enjoy monthly incomes of 15,000 baht from Jan 1, which is expected to cost the government an additional 24.5 billion baht annually, says Deputy Finance Minister Wirun Techapaiboon.

He said 649,323 public servants now earned less than 15,000 baht a month, with 346,365 of them holding at least a bachelor's degree.

University graduates will receive extra cost-of-living allowances to bring their monthly income to 15,000 baht. Those without degrees will receive new allowances to bring their incomes to between 9,000 and 12,285 baht.

"The issue is expected to be up for cabinet consideration within two weeks. The Office of the Civil Service Commission is structuring the new salary scale and will complete it within six months," said Mr Wirun.

"Hopefully, the measure will help to encourage the private sector to raise their workers' pay in order to stimulate people's purchasing power, domestic consumption and the economy overall."

He expects the higher salaries will attract more skilled people to the government as well as encourage skill development among the private sector.

read more
 

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I am a firm believer that market forces should rule. That said it is sickening how little some people seem to earn, and if the Thai government increases the pay of civil servants then that should put pressure on the market to pay more to get better staff in the private sector. In reality they are just creating inflation.

My only question is, will more money mean better productivity? I have recently bought a condo, and used painters, furniture fitters (national brand), bathroom fitters, decorators. I used these people because (as a very basic handyman myself) I wanted the place to look nice and have a professional job done. Boy was I wrong. On each and every occasion (sorry, Powerbuy did a good job of fixing the tv to the wall)I had to call them to come back and fix the job. If I had my time again I would have done it myself!
I paid good money for the work, and treated the workers well and expected a good job. I am begining to believe if you treat people well and with respect they think you are a fool. I wonder if the same applies with paying salaries- pay more to get less out of your staff???
 

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Discussion Starter · #13 ·
Following excerpts from an article in today's news, full story at link.


Wage hike plan gains traction

The Cabinet approved in principle yesterday a plan to raise the monthly income of civil servants with bachelor's degrees to 15,000 baht, while leaving open the possibility that the benefit may be extended to personnel with lower levels of education.

Under the proposal approved by the Cabinet yesterday, civil servants whose salaries are less than 15,000 baht a month would be given a cost of living allowance to bring their monthly income to 15,000 baht.

A total of 649,000 state officials in five categories are eligible for the cost of living increase. They are civil servants, permanent employees, temporary employees, contracted employees, and military personnel.

Of those, about 346,000 have a bachelor's or higher degree.

***
Soldiers whose salary now stands at 8,610 baht a month will enjoy the hike which will see their monthly income increase to 9,000 baht as well.

more
 

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Again less than promised.

Following excerpts from an article in today's news, full story at link.
It seems the government has lots of plans which are not going to achieve anything promised, but are designed to look like they are trying to help the Thai people.


My thinking this program too will cause inflation. What is a Degree in Thailand worth? Well, now the cost for government officials to purchase their degrees will surely go up as well. :D

Thailand is famous for its government officials to just buying a degree, or swamping them for "favors".
 

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Discussion Starter · #15 ·
New civil servant pay starts on Jan 1
December 29, 2011 6:13 pm

The Comptroller General's Department insisted that the new pay for all civil servants would be raised to Bt15,000 a month on Jan 1.

Rangsan Srivorasat, director-general of the department, said that the regulations to enforce this pay hike were submitted to the Council of State for screening on Dec 23. This should pave way for implementation on Jan 1, he said.

In line with the government’s policy to raise wages, those who hold a bachelor’s degree will be paid at least Bt15,000 a month, including allowances. The minimum wage of Bt300 per day will be implemented in April.

According to Rangsan, a number of 649,323 civil servants will enjoy a higher pay. They include military servants, police officers, teachers, government employees and temporary employees.

The pay of those holding no bachelor degree would be raised to at least Bt9,000.
 

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i know 'productivity' and Thais are not exactly good bedfellows but it's such a very small amount I do believe they should get a livable wage and that has to be 9,000 minimum (dependent on location - probably 25% higher in BKK)
 

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Discussion Starter · #17 · (Edited)
Govt officials’ salary hike approved
31/01/2012

The cabinet on Tuesday approved an increase in state officials' minimum base salaries at an estimated budget cost of 5.6 billion baht.

****

In the first year, 2012, the new salary structure will provide a minimum monthly income of 7,620 baht per month for government officials with a lower vocational certificate, known as Por Wor Chor in Thai, and a 9,300-baht minimum monthly income for those acquiring an upper vocational certificate, or Por Wor Sor.

Those holding a bachelor's degree will get a minimum 11,680 baht a month, a master's 15,300 baht and a doctoral degree 19,000 baht.

full news article here

****
Civil service pay rises get nod
 

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Discussion Starter · #18 ·
Firms ignore new graduates to save money
B15,000 starting salary blamed for joblessness

30/03/2012

Many entrepreneurs have refused to employ bachelor's degree graduates to avoid paying a starting salary of 15,000 baht, a seminar on youth employment was told yesterday.

Worachon Dulwit, secretary-general of the International Student Centre of Thailand, said many employers were reluctant to take on new graduates with a bachelor's degree because they did not want to pay the 15,000 baht starting salary promised by the Pheu Thai-led government during its election campaign last year.

Instead, employers have opted to hire diploma holders to cut costs, Mr Worachon said.

more
 

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Discussion Starter · #20 ·
not Thailand, but across the border in Cambodia, a salary survey from the Phnom Penh Post

Full article here, and some edits to follow:

Note: at today's exchange rates 1,000 riel (KHR) is approx US 25c, 4000 to the dollar, 100,000 = USD$25 and so on.

Thailand's 300-baht per day is USD$9.70, almost 40,000KHR.

Easy to see why there is a constant flow of people coming here seeking employment.

Salary In Different Occupations

  • Tourism Workers earn KHR 323,937 per month on an average
  • Restaurant Workers earn KHR 280,629 per month on an average
  • Machine maintenance and repair service workers earn KHR 400,700 per month on an average

Minimum Wages for the year 2010 to 2014

  • The minimum wage for a regular worker in Cambodia is 256,200 KHR per month. While an apprentice earns 126,000 KHR per month with regular working hours, a probationary earns 235,2000 KHR per month.

Wages for teachers

Wages Per Month
Average 358,885KHR 90USD
Min 20,000KHR 5USD
Max 800,000KHR 200USD
This data on wages is based on interviews with 142 teachers in Phnom Penh, Battambang, Kampong Cham, Siem Reap and Sihanoukville. The sample included primary school teachers, vocational education teachers, post-secondary teachers, secondary education teachers and university professors and lecturers.​

Wages for public administrators

Wages Per Month
Average 470,663 118
Min 150,000 37.5
Max 1,000,000 250​



About the data

The data on wages are based on a Wage Survey conducted by the Cambodia Institute of Development Study and Wage Indicator Foundation taken on March 3, 2011 to April 28, 2011 in Phnom Penh and four different provincial towns (Battambang, Kampong Cham, Sihanoukville and Siem Reap).​
 
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