Data on Minimum wage rate
were obtained from Department of Labor Protection and
Welfare, Ministry of Labor.
The Committee on Wage, which consists of three parties as set forth by the Labor Protection
Act B.E
2541 (1998)
, is authorized to set the rate of minimum wage. The Committee on Wage was set
up by the cabinet, chaired by the Permanent Secretary General of Ministry of Labor, together with
4
representatives from the Government,
5
representatives of each of employer and employee sides, as
committee while the official of the Ministry of Labor is a secretary of the committee.
The Committee on wage has decentralized its power to regional committee for making decision
for minimum wage rate by appointing sub-committee of minimum wage rate for Bangkok and for
76
provinces. This sub-committees consist of the same
3
parties as the Committee on Wage.
Consideration for setting up the minimum wage rate:
The committee on wage would
take into account the criteria specified in the “Labor Protection Act B.E
2541 (1998)
” and the amended
version no.
3
in
2008,
compliance with the actual wage rate, cost of living index, inflation rate, standard
of living, cost of production and price, business performance and labor productivity, as well as economic
and social situations. The minimum wage rate would not be below the base minimum rate, set y the
wage committee. If there is no minimum wage rate setting up in particular areas it means that base
minimum wage rate is the minimum wage rate. Currently, there was an amendment and announcement
regarding the minimum wage rates (no.
3
), dated
25
December,
2009.
Minimum Wage Rates refer
to wage rate that is enough for unskilled labor can earn their life
according to their local economic and social conditions.
Unskilled Labor refers to laborer
with education level was lower than
6
years of secondary
school, he or she might have just finished schooling or finished sometime ago, never worked or used to
work less than one year.
Setting up the minimum wage rate aims at protection and ensuring their minimum income for
unskilled labor to enter into new labor market, however there were some labors, with experience more
than one year but being employed with the minimum wage rate.
