Employees prepare to be happy ❗ adjust the new minimum wage rate

Employees prepare to be happy ❗ adjust the new minimum wage rate

After the chairman of the Thai Labor Solidarity Committee (NCPO) and representatives from the State Enterprise Labor Relations Confederation (STI) called for an increase in the 2018 minimum wage from 300 baht to 600-700. baht per day, there has been a lot of retaliation from both the government and from the private side.

In economics itself, raising the minimum wage has been a hotly debated issue for decades. especially during periods of low unemployment, campaign periods, and times when society has become intolerant of the level of income inequality.

This article outlines the key points about the “possible” impact on SMEs who are more affected than large enterprises by rising business expenses.

🔸 What is the minimum wage?

It is the minimum wage an employer must pay an employee on an hourly basis. daily or monthly as required by law or is synonymous with the lowest wage at which an employee sells his labor Although minimum wage laws are in effect in many states, There are still differences of opinion on the pros and cons of the minimum wage. Minimum wage advocates say This will increase the standard of life of employees and reduce poverty. while the parties did not agree that If the minimum wage is high enough to see results It will increase the unemployment rate.

especially among employees with low productivity due to inexperience or disabilities Therefore, it harms less skilled workers and benefits more skilled workers.

🔸 How to control expenses, wages and salaries

small business owner especially the trading business that has been affected by the minimum wage increase. Do not rush to solve the problem by increasing the selling price alone. because if our products are priced higher than competitors It makes it more difficult to predict sales in a slow economic environment. But business owners can adjust how they manage their business expenses initially. to control expenses not to be too high that they cannot cope, such as

1. Check to see how many employees are underpaid because of other pay considerations. In addition to wages Social Security Fund Contributions provident fund contributions Overtime and other commissions

Therefore, if the business has welfare or commissions that are not considered wages Some employers may cancel this benefit. Then adjust the salary base for employees instead and adjust the salary according to the same structure as an alternative that can be done.

2. Estimate various expenses of businesses that can be reduced Anything that is not necessary or is not worth paying should be reduced first. which will manage the expenses of the business in this section Business owners also need business data to be able to use it to analyze performance and assess actual costs.

3. Communicate with employees regularly to ensure they are on the same page. whether it is a policy for employees to enter or leave To join together to overcome various obstacles together, including maintaining the morale of the people who live Because people are the key to driving the organization forward.

🔸 How to adjust the minimum wage rate?

In 2020, there are different wage increases according to each area, namely

- Increased by 6 baht for 9 provinces: Chonburi, Phuket, Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon and Prachinburi.

- A fine of 5 baht for all provinces across the country other than those mentioned above

As a result, employees of each province will receive different minimum wages. Which is different to 10 levels, with the highest base minimum wage at 336 baht per day and the lowest base at 313 baht per day

🔸 Increased expenses

from the minimum wage adjustment In addition to employers have to pay increased wages. Do not forget that there are other expenses. related to wages followed by another

- Contributions to the Social Security Fund

- Provident Fund Contributions

- Overtime and other expenses based on salary, such as commissions and bonuses

Employers also need to prepare a plan for managing payroll-related matters, such as:

- How to adjust wages When wages are adjusted to groups of employees that are below the minimum wage, What should a group of employees with a higher salary base do? will adjust or not If there is no adjustment at all, it may cause resignation. Therefore, they should be careful about fairness.

- The first rate is based on educational qualifications. Companies that provide qualification-based first-rate employment for newly graduated employees Should be aware of the first rate of employment in the part of vocational qualifications and vocational certificates, and may have to check the bachelor's degree as well.

- Salary structure There may be a change in the salary structure due to the change in wages. Businesses with a higher percentage of employees with a lower percentage of employees who are employed are more affected by the minimum wage adjustments.

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