Big pay day: Thailand minimum wage to hike to 400 baht in 2025

Thai workers could be ringing in the new year with a pay boost, as the Labour Ministry announces plans to raise the minimum wage to 400 baht per day in 2025. Labour Minister Phiphat Ratchakitprakarn confirmed the increase, calling it “a new year present” for the nation’s workforce.

Initially slated for October, the raise faced delays as the national wage committee — made up of representatives from businesses, labour, and the government — struggled to gather enough members to make decisions. A lack of participation from business representatives, who missed meetings without explanation, stalled the process. However, a final decision is expected by December.

Currently, Thailand’s minimum wage varies between 330 and 370 baht per day, depending on the province. This planned rise to 400 baht reflects the Pheu Thai Party’s campaign pledge, with an ambitious goal of reaching a 600-baht minimum by 2027.

The raise will primarily affect businesses with over 200 employees, an adjustment that some business leaders argue overlooks economic disparities between provinces. Labour Minister Phiphat acknowledged the financial impact on employers, noting that the increase would cost businesses an additional 73 baht per worker daily.

“The impact would be huge,” he admitted, emphasising that smaller businesses might see wage increases later, depending on local committee reports.

Business groups have voiced concerns about a national flat rate, warning it could strain businesses in regions with weaker economies. They argue that one-size-fits-all wages are impractical in a diverse economy like Thailand’s.

As Thailand gears up for the change, all eyes are on December’s wage committee meeting, where the final decision on this long-awaited wage boost will be made, reported Bangkok Post.

ORIGINAL STORY: National wage committee to finalise 400-baht minimum wage

Labour Minister Phiphat Ratchakitprakarn announced that the national wage committee will reconvene on Friday to discuss the implementation of a 400-baht minimum wage for large employers nationwide starting October 1.

The tripartite committee, which includes representatives from employees, employers, and the government, met on Monday. However, all five employer representatives were absent, leaving only the 10 members from the employee and government groups present. According to Phiphat, the ministry was informed that “other engagements” had prevented the employers’ representatives from attending.

Employers have generally opposed the idea of a 400-baht minimum wage, particularly the proposal to standardise it nationwide. The current minimum wage varies by province, ranging from 330 to 370 baht.

Phiphat stated that another invitation will be extended to the employers’ representatives for Friday’s session.

“I urge the five employers’ representatives to attend the meeting to exercise their rights. If they fail to do so for a second time, we will assume they have waived their rights.”

Regardless of attendance, the meeting on Friday will proceed, with a two-thirds majority required to approve the 400-baht wage policy. This wage increase would apply to businesses employing at least 200 workers. Phiphat expressed confidence that the policy would be implemented on October 1.

The minister acknowledged receiving letters from the Chamber of Commerce, Federation of Thai Industries, and their provincial offices, which indicated that they are not prepared for a wage increase, reported Bangkok Post.

However, Phiphat emphasised the necessity of the wage rise due to the increasing cost of living.

“We have to find the best balance so that employers and employees can move forward together.”