In early 2018, there was significant news regarding Thai labor income, specifically the increase in the minimum wage rates for 2018, which ranged from 308 to 330 baht per day. In the Bangkok metropolitan area, the average wage was 325 baht per day, while the national average was approximately 315.97 baht per day. The details are as follows:

         

TerraBKK Research is interested in examining how labor wages vary across different industries. According to the latest data from the Bank of Thailand, which covers labor wages from 2012 to 2017 (9 months), it was found that in 2017 (9 months), there was a significant difference between the highest and lowest wages. The international organization activity industry had an average wage of 59,878 baht per month, the highest in Thailand, while the household employment industry, which produces goods and services for personal use had the lowest average wage of 8,480 baht per month. The remaining 18 industries had wages that were relatively close, ranging from 10,000 to 30,000 baht per month. The details are as follows:

• Monthly wages of 20,000 to 30,000 baht were found in 5 industries: the electricity, gas, steam, and air conditioning sector; the information and communication sector; the financial and insurance activities sector; and two sectors that have shown a consistent increase in wages over the past 6 years: education and professional, scientific, and technical activities.

• Monthly wages of 15,000 to 20,000 baht were found in 5 industries: health and social work activities; transportation and storage; and public administration, defense, and compulsory social security. Additionally, two sectors that have shown wage fluctuations in recent times are mining and real estate activities.

• Monthly wages of 10,000 to 15,000 baht were found in industries such as water supply, waste management, and remediation activities; manufacturing; wholesale and retail trade; automotive and motorcycle repair; administrative and support service activities; arts, entertainment, and recreation; and finally, the hotel and food service industry, totaling 6 industries.

• Monthly wages of less than 10,000 baht were found in 3 industries: construction; other service activities; and the industry with the lowest wages currently, which is household employment and the production of goods and services for personal use.

            Finally, TerraBKK Research believes that the newly set minimum wage of 308 baht per day, or approximately 9,240 baht per month, could help improve the income of Thai workers in the other service activities and household employment sectors, providing them with better earnings amidst the current average inflation rate of 2.5% (+,-1.5%).  --- TerrraBKK

Article by: TerraBKK Investment Tips
TerraBKK Finding Good Homes, Value for Money, Affordable Prices