BANGKOK, 18 May 2011 – The Federation of Thai Industries (FTI) has suggested that the new government should adjust the minimum wage up in line with the current situation and take the impact of the increase on entrepreneurs in consideration.
FTI Vice Chairperson Dr Tanit Sorat stated that the new government should consider increasing the minimum wages reasonably because doing so without considering its impact on the national industrial system will certainly have adverse effect on the industry’s operating cost and exports of products.
Dr Tanit expressed his opinion that minimum wage hike should be in accordance with the living costs, and that it could be increased every few years in the form of annual income, which should not be lower than the national inflation rate.
The vice chairperson added that the government should also expedite the regulations to increase wages based on skills and qualifications; therefore, skilled workers’ salaries should be commensurate with their experience and ability.
Dr Tanit explained that failure to do so could lead to skilled workers migrating to and earning more in neighbouring countries after the establishment of the ASEAN Economic Community in 2015.