Thai Labour Minister pledges tailored minimum wage hike
Labour Minister Phiphat Ratchakitprakarn has committed to increasing the minimum wage to a suitable level in the upcoming year. However, a standard daily rate of 400 baht will not be uniformly applied across all sectors. Some industries, like tourism, currently exceed this proposed baseline.
The ministry, in conjunction with employers and employee representatives such as the Federation of Thai Industries and the Thai Chamber of Commerce, is collectively analysing an appropriate minimum wage rate.
The revised level will consider factors such as inflation rate, cost of living, and variations between provinces and different industries rather than setting a uniform 400 baht rate.
The minimum wage study is projected to conclude in November, with the announcement of the new minimum wage expected to be a New Year’s present for employees, starting January of the following year, according to Phiphat.
The impending minimum wage increase will be applicable to all workers, irrespective of their nationality. Consequently, the ministry plans to concentrate on enhancing the skills of Thai employees to meet employer requirements, particularly for job roles earmarked for Thai nationals.
These upskilled workers have assured a minimum daily wage of at least 400 baht, Phiphat, who formerly held the position of tourism minister, stated.
Phiphat asserted that a baseline of 400 baht would not significantly impact the tourism industry as this sector often pays skilled workers above the proposed minimum wage. He highlighted a current shortage of approximately one million employees in the tourism industry, nearly 25% lower than the 2019 figures.
Ministry’s Strategy
The ministry’s strategy includes attracting local graduates possessing foreign language skills, such as English, through short training programmes. This approach takes precedence over the importation of foreign workers into Thailand, despite some businesses requesting this action, Phiphat added.
The Skill Development Department has already trained over 280,000 tourism industry workers in the current year. The department aims to upskill and reskill a minimum of 400,000 workers in the tourism sector by next year.
Visa-Free Scheme
Sisdivachr Cheewarattanaporn, the president of the Association of Thai Travel Agents, expressed that the visa-free scheme for Chinese and Kazakh tourists might not immediately result in a significant increase in large tour groups. He pointed out that tour operators are currently operating with only half the number of employees compared to 2019.
The gradual return of tour groups will allow tour companies to slowly increase employment levels, eventually accommodating a larger number of tourists when the flow strengthens next year, Sisdivachr explained.
In addition to the minimum wage increase, he suggested the government should also consider reducing costs for operators, reported Bangkok Post.
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