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Impacts of implementing minimum wage on small and medium business structure in Thailand

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2022-07-26 11:03:01

        The objectives of this research were to study the effect of minimum wage on small and medium firms in Thailand economics, to explore the optimal wage for improving the poor walk of life and make the alternatives to reduce effect of minimum wage 300 baht over the country in the area of Bangkok and 6 perimeter provinces: Nonthaburi Pathum Thani Samut Prakarn Nakhon Pathom Samut Sakhon and Samut Songkram. 

        The results of the quantitative research found that out of 13 types of businesses, a total of 400 were mostly small and medium-sized businesses. Most of the employees are Thai followed by Myanmar migrant workers. When the government announced the minimum wage rate to 300 baht per day on 1st April 2012, most businesses were moderately affected, able to adapt without reducing the number of employees. These entrepreneurs want most of the government's help is access to funding to have loans. To enhance liquidity for the business and reduce the interest rate on loans to be lower than before and the tax that wants to reduce the corporate income tax rate lower than the current one.

        For qualitative research technique by in-depth interview with 14 entrepreneurs showed their vision that using Myanmar labor in the business because easy to recruit and for control their operation cost. For skilled labor and much experience, they selected the Thai employer which paid upon work performance and loyalty. All interviewers suggested that the minimum wage policy did not should in the same price but should vary by the characteristic of each province.

        As a result of having the same minimum wage policy across the country, it was found that the overall cost increased, causing almost all businesses to avoid using foreign workers which both have to adapt to each other. As a result, all businesses must adapt to the changing conditions of various forms of minimum wage laws. All interviewees consider it inappropriate but should be adjusted to suit the context of each area to reflect the actual business conditions of the business location.

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Title: Impacts of implementing minimum wage on small and medium business structure in Thailand

Creator: กฤษฎา สังขมณี

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Information and Illustration : Weerawan Srisawat