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Thailand - Minimum Wages - 2011


LAST UPDATE

16 September 2011

SOURCES


Name of Act

Labour Protection Act, B.E. 2541, dated 12 February 1998, as amended by Labour Protection Act (No. 2) B.E. 2551 (2008) and Labour Protection Act (No.3) B.E. 2551 (2008). English translation, as published by ThaiLaws.com
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Name of Act

Ministerial Regulation No. 9, of 14 September 1998,
(B.E. 2541), Issued under Labour Protection Act B.E. 2541, Government Gazette Vol. 115, Part 62 A, 22 September 1998.

Name of Act

Ministerial Regulation No. 9, of 19 August 1998, (B.E. 2541), Issued under Labour Protection Act B.E. 2541, Government Gazette Vol. 115, Part 49 A, 19 August 1998; and Ministerial Regulation No. 9, of 14 September 1998, (B.E. 2541), Issued under Labour Protection Act B.E. 2541, Government Gazette Vol. 115, Part 62 A, 22 September 1998.

Name of Act

Ministerial Regulation of Minimum wage rate (No. 9), of 2 May 2008,
in force from 1 June 2008.

Name of Act

Ministerial Regulation No. 1, of 19 August 1998,
B.E. 2541 (1998) issued under the Labour Protection Act.

LEGAL DEFINITIONS


Employee/worker

Employee shall mean a person who is employed by an employer for remuneration, regardless of the title he is given.
Labour Protection Act 1998 (as amended 2008) §5

Employer

Employer means a person who agrees to accept an employee for work by paying wages and includes a person entrusted to act on behalf of the Employer and, in case where an Employer is a legal person, a person authorized to act on behalf of the legal person and a person entrusted by an authorized person to act on his or her behalf.
Labour Protection Act 1998 (as amended 2008) §5

Wage

Basic pay means the money which the employer and employee mutually agree is to be paid in return for work done in accordance with the employment contract during normal working hours on an hourly, daily, weekly, monthly or other periodic basis or to be paid upon the basis of output of the employee during normal working hours, and also includes money which the employer pays whilst the employee is on holiday or taking other leave and during which time the employee did not work but nevertheless is such in respect of which he is entitled to receive payment under this Act.

Basic pay for working day means remuneration which is paid in respect of work done during normal working hours.
Labour Protection Act 1998 (as amended 2008) §5

Minimum wage

Minimum rate of basic pay means the wage rate prescribed by the Remuneration Committee under the Labor Act.
Labour Protection Act 1998 (as amended 2008) §5

MINIMUM WAGE FIXING


Procedure


Government decides after tripartite or bipartite body discussions/recommendations

The National Wage Committee makes a recommendation to the government concerning the fixing of the (regional) minimum wage rates. The Committee consists of 5 representatives from the government (including the Permanent Secretary of the Ministry of Labour and Social Welfare as Chairman) and 5 representatives each of employers and employees.

The National Wage Committee may:
(i) appoint a Sub-Committee to consider or perform any acts assigned by the Wage Committee;
(ii) appoint up to 5 persons qualified in the field of labour, wage and salary administration, economics, industry or law to act as advisors to the Committee;
(iii) summon any person to provide a statement or furnish any document or item as deemed necessary;
(iv) request any organization or person to cooperate in an inspection of any business which may impact the economy; and
(v) enter a place of business or the office of an employer during working hours in order to study, survey, research, inspect or make inquiries in order to obtain information relevant to its tasks.
Labour Protection Act 1998 (as amended 2008) §§78, 79, 84, 84/1, 85

Minimum wages set directly by tripartite negotiations

The Wage Committee has the power and duty with regards to fixing minimum wage rates.

The Wage Committee consists of 5 representatives from the government (including the Permanent Secretary of the Ministry of Labour and Social Welfare as Chairman) and 5 representatives each of employers and employees. At least 2/3 of the members present at meetings to consider the fixing of the minimum wage rates, including at least 2 representatives of both the employers and employees.

The National Wage Committee may:
(i) appoint a Sub-Committee to consider or perform any acts assigned by the Wage Committee;
(ii) appoint up to 5 persons qualified in the field of labour, wage and salary administration, economics, industry or law to act as advisors to the Committee;
(iii) summon any person to provide a statement or furnish any document or item as deemed necessary;
(iv) request any organization or person to cooperate in an inspection of any business which may impact the economy; and
(v) enter a place of business or the office of an employer during working hours in order to study, survey, research, inspect or make inquiries in order to obtain information relevant to its tasks.

Once it has studied the relevant information data and given consideration to the prescribed facts, the Wage Committee shall announce and prescribe the minimum wage rate by submitting to the Council of Minister for publication in the Government Gazette.
Labour Protection Act 1998 (as amended 2008) §§78, 79, 82 84, 84/1, 85, 88

Criteria


Needs of workers and their families

The Wage Committee shall take into account the subsistence standard.
Labour Protection Act 1998 (as amended 2008) §87

Cost of living

The Wage Committee shall take into account the cost of living index.
Labour Protection Act 1998 (as amended 2008) §87

Level of wages and incomes in the country

The Wage Committe shall study and consider the facts relating to the wage rate having been currently received by the employees.
Labour Protection Act 1998 (as amended 2008) §87

Social security benefits

No express reference is mad to social security benefits, but the Wage Committee is required to take into account the economic and social condition.
Labour Protection Act 1998 (as amended 2008) §87

Economic development

The Wage Committee shall take into account the economic condition.
Labour Protection Act 1998 (as amended 2008) §87

Productivity

The Wage Committee shall take into account labour productivity.
Labour Protection Act 1998 (as amended 2008) §87

Level of employment

The Wage Committee shall take into account the economic and social condition.
Labour Protection Act 1998 (as amended 2008) §87

Capacity of employers to pay

The Wage Committee shall take into account business capability.
Labour Protection Act 1998 (as amended 2008) §87

Inflation rate

The Wage Committee shall take into account the inflation rate.
Labour Protection Act 1998 (as amended 2008) §87

Other provisions

The Wage Committee shall also take into account the gross domestic product, production cost, goods and service price.
Labour Protection Act 1998 (as amended 2008) §87

Coverage


Scope

The minimum wage rate set by the Wage Committee applies equally to all employers and employees (as defined), without discrimination. However, the following categories of employees are excluded from the coverage by the relevant part of the Labour Protection Act:
(i) employees who work for central, provincial and local administrations;
(ii) employees who work for state enterprises covered by the law governing state enterprise labour relations;
(iii) employees who perform agricultural work;
(iv) employees who perform housework which is not part of a business operation;
(v) employees who perform work that is not intended to seek economic profit;
(vi) headmasters and teachers working in private schools covered by the law governing private schools.
Labour Protection Act 1998 (as amended 2008) §§4, 89
Ministerial Regulation No. 1, of 19 August 1998 §§1, 2, 3

Excluded categories


» Workers

Agricultural workers, homeworkers and domestic workers. Employers who run private schools are also excluded from the Labour Protection Act. Additionally, the Labour Protection Act does not cover central, provincial and local administration; and state enterprises governed by the Law on State Enterprises.
Ministerial Regulations No. 9, of 19 August and 14 September 1998 §1 and 2
Ministerial Regulation No. 9, of 14 September 1998

» Sectors

Agricultural workers, homeworkers and domestic workers. Employers who run private schools are also excluded from the Labour Protection Act. Additionally, the Labour Protection Act does not cover central, provincial and local administration; and state enterprises governed by the Law on State Enterprises.
Ministerial Regulations No. 9, of 19 August and 14 September 1998 §1 and 2
Ministerial Regulation No. 9, of 14 September 1998

Specific minimum wage rates


» Specific minimum wage by occupation

The Wage Committee may fix minimum wage rates for use specifically by a particular field of business, work or career.
Labour Protection Act 1998 (as amended 2008) §87
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» Specific minimum wage by sector

The Wage Committee may fix minimum wage rates for use specifically by a particular field of business, work or career.
Labour Protection Act 1998 (as amended 2008) §87
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» Specific minimum wage by region

Minimum wage rates set by the Wage Committee may be fixed by locality.
Labour Protection Act 1998 (as amended 2008) §87

Level


Minimum wage level(s) in national currency

Baht 148 per day in the province of Chiyaphoom (lowest regional minimum wage)
Baht 203 per day in Bangkok
Ministerial Regulation of Minimum wage rate (No. 9), of 2 May 2008
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Last minimum wage update

1 June 2008
Ministerial Regulation of Minimum wage rate (No. 9), of 2 May 2008
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In-kind allowances

An employer is prohibited from making any deduction from basic pay, overtimepay, holiday pay and holiday overtime pay, except for:
(i) payment of income tax in an amount which the employee is obliged to pay, or other payments as specified by law;
(ii) payment of contributions to a labour union in accordance with the union’s regulations;
(iii) payment of debts to a savings or other cooperative of the same nature as a savings cooperative, or debts which have been incurred for the purpose of the welfare for the sole benefit of the employee, with the prior consent of the employee;
(iv) guarantee money as referred to in s10 or compensation paid to an employer due to a wilful act or the gross negligence of the employee, provided that the employee consents;
(v) an employee contribution under an agreement respecting the employee welfare fund.
Labour Protection Act 1998 (as amended 2008) §76

Rate of payment


» Monthly

An employer shall correctly and precisely pay basic pay that is calculated on a monthly, daily, hourly basis or at other duration of no longer than one month, or on the basis of output, at least once a month unless otherwise agreed upon by the employer and employee in the best interests of the employee.

Overtime pay, holiday pay and holiday overtime pay must also be correctly and precisely paid at the rate of at least once a month,
Labour Protection Act 1998 (as amended 2008) §70(1), (3)

» Other

Where an employee’s basic pay is calculated on methods other than those requiring monthly payment, payment shall be made at the time agreed upon by the employer and employee.
Labour Protection Act 1998 (as amended 2008) §70(2)

Scheduled frequency of adjustment

No prescribed frequency of adjustment identified.

Enforcement mechanisms


Labour inspection

Labour Inspectors may enter a workplace during working hours in order to inspect the conditions of employment and make copies of documents pertaining to the payment of wages. In addition, Inspectors may perform any other activities necessary to obtain the facts required to ensure that the provisions of the Labour Protection Act are complied with.

For the purposes of performing the labour inspection duties of the Labour Inspector, employers employing 10 or more employees shall submit a report form on conditions of employment and working conditions to the Director-General every January. Any changes to working conditions must be reported within one month of the change.
Labour Protection Act 1998 (as amended 2008) §§115/1, 139

Fines in national currency for non-respect of legislation

An employer who pays an employee less than the minimum wage is liable for a fine not exceeding 100,000 baht.
Labour Protection Act 1998 (as amended 2008) §144

Other penalties

An employer who pays an employee less than the minimum wage is liable to imprisonment not exceeding six months. This may an alternative or in addition to a fine.

Where an employer fails to pay wages, he shall pay interest to an employee at the rate of 15 per cent per annum during the default period.
Labour Protection Act 1998 (as amended 2008) §144

Results generated on: 25th October 2014 at 11:29:53.
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