Thai restaurants struggle with 400 baht minimum wage hike
Thaniwan warned new wage could trigger salary hikes across positions
The Thai Restaurant Association expressed concern about the impact of the recent decision to raise the daily minimum wage to 400 baht on the already struggling restaurant sector.
This adjustment, effective from July 1, will apply to all workers in Bangkok and is extended to employees in most hotels and entertainment venues across the country. Currently, the minimum wage in Bangkok stands at 372 baht per day.
Thai Restaurant Association President Thaniwan Kulmongkol highlighted that while restaurant operators typically offer wages higher than the minimum to attract workers, the increase might still pose challenges.
The change particularly affects non-skilled foreign workers within the industry. Thaniwan pointed out that workers earning slightly above the new minimum wage might demand higher salaries, potentially prompting a wage hike across all positions.
She emphasised the necessity for better communication between restaurant owners and staff during these challenging times.
Suthiphon Somvasoon, owner of Kaotom Thewet in Phra Nakhon, Bangkok, confirmed the labour shortages faced by the industry, noting that many Thais are reluctant to work in restaurants.
He mentioned that while foreign workers could fill most roles, some management and chef positions still require Thai nationals. Suthiphon stated that his staff currently earn above the new minimum wage, with only inexperienced new hires starting at the legal minimum. To attract workers, the restaurant also provides meals and accommodation.
He acknowledged the economic downturn and its impact on the industry, asserting that due to current wages already exceeding 400 baht, further increases are not planned. He remarked on the pressure the wage hike places on restaurants already grappling with rising raw material costs, which may force them to increase prices.
Suthiphon proposed that the government implement economic stimulus measures to attract foreign tourists, suggesting improvements such as addressing overcharging by taxis and tuk tuks to enhance the tourist experience, reported Bangkok Post.
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