Law Firms In Thailand Can Advise On Minimum Wage Increase

Thai and international companies - in particular small and medium-sized enterprises - with concerns or enquiries in general about the kingdom's new minimum wage now in effect should contact a law firm in Thailand for advice and consultation. End Quote

(1888PressRelease) April 10, 2013 - Bangkok - Understandably popular with the country's workforce, the minimum daily wage policy of the Pheu Thai Party-led government requires employers in Thailand to pay their employees at least Bt300 a day. The fulfilment of a 2011 election campaign pledge, the policy was piloted in seven of the country's provinces as of mid 2012 and is now in effect nationwide.

There has been and continues to be much debate over the policy and the perceived and actual affects it will have. Advocates point out the increase in wages boosts public spending power, helps reduce the wage gap and leads to a reduction in the level of geographical disparity in Thailand, with fewer workers moving from rural areas to Bangkok for higher wages.

Some employers meanwhile, especially those running small and medium-sized enterprises (SMEs), are concerned over the affects increased labour costs might have on their businesses. The wage hike is expected to hit SMEs in labour intensive industries the hardest. Many academics and business association groups say the increase to Bt300 was implemented too quickly and did not give companies enough time to prepare.

Among company closures seen in the second half of 2012, several companies cited impacts of the minimum wage policy as the reason for their closure. On the other hand, the Ministry of Labour's permanent secretary stated workers' productivity increased by 12 per cent last year due to the policy, compared to an estimated average growth of between 2 and 3 per cent without the policy.

BSA Law, an international law firm in Thailand, suggests employers seek advice from their law firm on issues related to the minimum wage policy. "We are happy to provide advice and field any questions business operators may have on business investment in Thailand, starting a business in Thailand, Thai labour law and other related issues" said BSA Law spokesman Apisakde Kongkangwanchoke.

http://www.bsalaw.co.th

###

Visit Bsa Law Website

space