The incoming government has proposed increasing the minimum wage to THB 300 per day nationwide. That is almost double current minimum wage in most provinces (Udon is THB 159/day). As this was a campaign promise (please correct me if I am wrong), they are obligated to follow-through or risk being dissolved for essentially lying to get votes.
http://www.thailand-blogs.com/wp-conten ... ovince.jpg
IMHO, while this is see as a positive by the poor, I do not think they realize the knock-on affect of such a dramatic increase. Those who already have jobs will see (assuming their employer follows the law) a honeymoon period where they have more disposable income, but it won't last for long. They will likely loose their job to some immigrant who will work for less and then they will really be in a pickle as they find themselves jobless in a world of suddenly dramatically increased prices for all manner of goods and services. In the end, they could certainly end up longing for the days when that THB 159/day was at least enough for a day's meals.
I say this with the conviction of observation. I have relatives who scurry off to Bangkok and other higher wage cities "because they pay more". However, they do not factor in at all the increased living expenses, transportation costs, etc. of working in those places. In truth, many are actually LOSING money by making more. I can't rag on them too much, though. I have friends in NYC still earning well into the 6 figure range who bank less than other friends earning not even half as much living elsewhere.
It is that top-line deer-in-the-road stare (aka the LOS look) that will get the poor here in Thailand run over by the reality lorry. It will be good living until they lose their job or until inflation catches up and surpasses any perceived benefits.
As an ex-pat, I am very concerned. With the accompanying domestic inflation, I have to plan to see at least a 20% erosion (possibly as much as 50%) in purchasing power for any funds I transfer over after the wage increase. I'm not a pensioner, but if I were, I would be soiling my pants at the thought and searching for ways to cut corners so I could maintain my standard of living a bit longer. ("beep-beep" goes the reality lorry).
So, those are my thoughts on the subject. Nice promises. Not so nice consequences.
