Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >>   Politics  >>   Thai finance chief wants higher wages
NEWS UPDATES Asean Affairs        16  May 2011

Thai finance chief wants higher wages

Related Stories

May 9,2011
Thailand, Cambodia at loggerheads

May 7, 2011
Thai PM Abhisit submits dissolution decree

May 4, 2011
Thai cabinet spends before elections

April 30, 2011
Thai PM says government ready for ICJ

April 8, 2011
Thailand, Cambodia reach agreement on border

March 18, 2011
Cambodia opposition leader stripped of MP status

February 2, 2011
Two Thais found guilty by Cambodian court

Finance Minister Korn Chatikavanij of the Democrat Party wants to offer companies new tax breaks in exchange for salary hikes for new employees.

The policy would target workers earning less than 15,000 (US$500) baht per year.

Companies that commit to increasing salaries for workers would be allowed to take special deductions against their corporate tax liabilities equal to as much as four times the additional cost in payroll expenses.

Mr. Korn said that unlike a policy floated by the Democrats' main rival, the Pheu Thai Party, this plan would target all low-income workers.

Pheu Thai earlier said that it would offer guaranteed starting salaries of at least 15,000 baht (US$1,500) for new bachelor's degree holders entering the workforce.

"Our aim is to help ensure that all workers earn at least 15,000 baht per month," Mr. Korn said. The finance minister added that the programme would be a voluntary "win-win" venture between the private sector and the state.

Participating companies would benefit thanks to tax breaks, while the economy overall would gain a boost from the increase in household incomes.

Mr. Korn said the programme would effectively eliminate any added cost for participating companies while directly benefiting workers and the public.

And while the policy would seem to come at the cost of tax revenues, Mr. Korn said it would have no broad impact on fiscal discipline or commitments to return to a balanced budget by 2015. The Democrats and Pheu Thai will campaign heavily on economic issues in the runup to the vote on July 3.

Recent data shows the Thai economy continuing to expand well thanks to strong exports and domestic spending, the rising cost of food, fuel and other basic essentials has shaken consumer confidence.

Both parties have rolled out lavish platforms to win votes using subsidies and wage hikes, prompting warnings from the private sector about the potential cost to businesses. The Thai Chamber of Commerce last week warned that raising minimum wages by 50 baht per day for 5 million workers would cost companies 90 billion baht a year. It said policymakers would do better to focus more resources on skills training and tax reforms to increase competitiveness.

But Mr. Korn insisted that while the two parties may have similar aims, the difference is in the details.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    16  May 2011 Subsribe Now !
 • Obstacles in Indonesia’s property sector Subcribe: Asean Affairs Global Magazine
• Indonesians prefer Suharto Asean Affairs Premium
• Long haul low-cost carrier IPO postponed
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Toyota resumes operations in June
• Thai finance chief wants higher wages

• Thai footwear industry awaits AEC

• Vietnamese businesses face 20 percent interest rate

• Making fuel from cassava in Vietnam p

Asean Analysis    16  May 2011

Advertise Your Brand
• Asean looks toward youth Sponsor Our Events

Asean Stock Watch    16  May 2011

• Asean Stock Watch-May 16 p

Global News Impacting Asia    17 November 2010


• Bank of America sees Asian inflation


• Lloyd’s increases insurance push in Malaysia


• Wells Fargo analyst on euro


• Obama’s visit to Asia


ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand