7-baht wage hike had “no effect’ – Labor chief

PHUKET: The seven-baht increase in the minimum wage in Phuket to 193 baht a day, which came into effect on January 1, has not negatively affected businesses on the island, Vice-Governor Worapoj Ratthasima announced on Monday.

Before the rise from 186 to 193 baht, bestowing Phuket with the second-most-expensive minimum daily wage rate in the country – and just a baht below the daily rate in Bangkok – concerns had been expressed that the move could be a threat to the survival of small businesses in Phuket.

“We have found that the increase has not affected Phuket’s economy at all,” Suthipong Saiskarej, director of the Phuket Provincial Labor Office, said.

“Phuket’s economy depends mainly on tourism, and people in the hospitality industry are generally paid above the minimum wage anyway, so they have not been affected by the move,” K. Suthipong explained.

It is believed that Phuket Governor Niran Kalayanamit aims to have the minimum wage in Phuket raised by another seven baht before the end of the year.

“If the economy continues to grow at its current rate, it is possible that raising the minimum wage even further will be considered, although it’s not something that will happen right now,” K. Suthipong said.

“There are many factors to be considered before we can increase the minimum wage again,” he added.