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Tuesday, May 01, 2012
The Nation/Asia News Network
Thailand's higher living costs eat up hike in daily wage

The Labour Ministry will monitor the cost of living over the next three months to determine if any additional adjustment is needed to the minimum daily wage.

From April 1, workers in seven provinces have already earned at least Bt300 (S$12) a day thanks to a significant hike pushed by the Pheu Thai-led government and approved by the Central Wage Committee.

And the daily minimum wage will soar to Bt300 in 70 other provinces from next January.

However, a recent survey suggests workers have not really benefited from the significant wage hike because product prices have also jumped.

"I have already signed an order instructing provincial labour chiefs to survey the cost of living in their respective provinces within three months," permanent secretary at the Labour Ministry Somkiat Chayasriwong said. This should |be done within three months.

"In July, we should obtain information to determine how to tackle problems relating to the cost of living."

The Bank of Thailand said yesterday inflation was expected to be 3.7 per cent over the next 12 months, up from 3.5 per cent in February.

Energy price the problem?

However, Somkiat yesterday sought to downplay growing criticism that the government policy to raise the daily minimum wage had pushed up the cost of living.

"The main factor behind the soaring cost of living is the increasing energy price," he said.

Somkiat said when the energy price rises, the electricity price, bus fares and transport costs climb too.

"But on the bright side, the increased wage has eased the expense burden on workers," he said.

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