Tripartite panel approves new formula for calculating minimum wage

Phairoj Chotikasatien, permanent secretary for Labour Ministry and chairman of the tripartite wage committee, said the panel approved the new factors for calculating daily minimum wages during its second meeting of this year.

He said the approved new factors are areas and types of businesses, which would be considered along with the current economic situation and inflation rates.

The committee approved the new formula to be applied in the 10 tourism provinces first. They are: Bangkok, Chiang Mai, Phuket, Chon Buri, Surat Thani, Krabi, Songkhla, Phang Nga, Prachuap Khiri Khan and Rayong.

He said provincial subcommittees would survey the current minimum wages in the province and their cost of living, necessary expenses and other economic factors in the provinces as well as payment ability of employers and SMEs in the provinces.

The subcommittees would then calculate how much the wages in the provinces should be increased and would report their findings to the full wage committee on March 26.

He said it was the first time that the wage increases would be based on areas and types of businesses.

He said the wage increases for the 10 provinces would be implemented by April and the wage committee would consider wage increases for other provinces after the first 10 provinces are finalised.

It would be the second increase this year after the latest wage increase of 2.37% on average, or 2-16 baht a day, took effect on January 1.

The tripartite wage committee, which comprises representatives from the government, employers and employees, was told to consider higher increases after Prime Minister Srettha Thavisin cried foul that the increase was too low, especially for work in southern provinces.

Atthayut Leeyawanich, an employers' representative on the wage committee, said the calculation factors for increasing the wage have been adjusted to make it fairer for both sides and it was used for the first time this year.