In a follow-up to a post last week that touched on a proposal by the Democrat-led administration in Thailand to increase the minimum wage by 25 percent over the next 2 years, Bloomberg has an article on this proposal: Key excerpts:
“Wage rates in Thailand are among the lowest in the world compared with similarly sized economies,” Buranaj said by phone from Bangkok today. “We will benefit in terms of competitiveness and innovation by moving to a more highly skilled workforce.”
Thailand’s minimum wage in terms of purchasing power parity is $295 a month, compared with $85 in Vietnam, $148 in Indonesia and $379 in the Philippines, International Labor Organization statistics show. The country’s average daily minimum wage increased by 25 percent over the past decade to 206 baht ($6.73) from 165 baht, according to data compiled by Bloomberg.
BP has had a read of the ILO’s “Global Wage Report 2010/11 Wage policies in times of crisis” (PDF). On page 118:
Then again, having a high minimum wage may not mean that much if a number of workers are not being paid the minimum wage, per the report (p 70):
In Thailand, for instance, about 25 per cent of workers in the manufacturing sector were estimated to earn less than the minimum wage in 2009. Similar enforcement gaps are also reported for the Philippines.
BP: A number of other countries elsewhere in the world are also listed in the report – f0r Libya, which is in the news, the figure is 273. Nothing really earth-shattering, but some interesting figures and also some other interesting information in the report which is worth considering…