Government confirms plans to increase daily minimum wage in January

Alex MorganPublished: 17:12, 26 December 2023| Updated: 17:12, 26 December 2023

169 1 minute read

Government confirms plans to increase daily minimum wage in January — Photo courtesy of iStock

Photo courtesy of iStock

The government has confirmed plans to raise the daily minimum wage in January, according to Prime Minister Srettha Thavisin. This is in line with an earlier agreement made by the tripartite wage committee, composed of government, employer and employee representatives. However, the Prime Minister, who also serves as the finance minister, has considered the agreed 2.37% increase insufficient.

Prime Minister Srettha‘s Pheu Thai Party has been a strong advocate for wage increases, campaigning on a populist platform to raise the daily minimum wage to 400 baht (US$11.60).

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Labour Minister Phipat Ratchakitprakarn, in a conversation with reporters, disclosed, “Another investigation covering local wage rates and professional groups will conclude in March … (to determine) areas and groups that can increase wages.”

The current minimum wage, which varies between different regions, stands at 328 (US$9.50) to 354 baht (US$10.25). The committee has reached a consensus to increase this range from 330 (US$9.50) to 370 baht (US$10.70), reported Bangkok Post.

The Pheu Thai Party pledged during their election campaign to increase the wage to 600 baht (US$17.35) by the conclusion of their four-year term.

The most recent hike endorsed by the National Wage Committee was a 5% increase in October 2022.

In related news, Thailand’s tripartite committee on minimum daily wages faces a pivotal meeting to reconsider the recently established rate, following criticism from Prime Minister Srettha Thavisin. The committee, representing government, employers, and employees, will discuss the potential revision and evaluate a new formula for wage adjustments proposed by Thammasat University’s Faculty of Economics. However, employers’ representatives expressed disagreement, citing the legal process followed in determining the rate on December 8. The current daily wage ranges between 330 and 370 baht (approximately US$9.4 to $10.6) across regions, and any potential revision will be a topic of deliberation in the upcoming meeting.

Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.