400-baht minimum wage confirmed for October 1 despite delay

Labour Minister Phiphat Ratchakitprakarn confirmed that the 400-baht daily minimum wage will take effect on October 1 as planned, despite the national wage committee’s failure to endorse it yet.

Opposition People’s Party MP Sia Champhathong questioned the minister in the House yesterday, asking if the adjournments of two recent committee meetings were a governmental tactic to avoid addressing the issue.

Phiphat clarified that, as labour minister, the matter is beyond his control. The tripartite committee, consisting of 15 members from employers, employee groups, and the government, operates independently.

“I can neither join the meeting nor sanction its progress.”

Phiphat mentioned that had the September 20 meeting proceeded, it was likely all five representatives from the employers’ group would have voted against the wage increase.

Employers generally oppose the idea of a 400-baht (US$12) minimum wage, especially the proposal to standardise the rate nationwide. Currently, the minimum wage ranges from 330 to 370 baht (US$10 to US$11) depending on the province.

Phiphat noted that several agencies are working to persuade the Bank of Thailand to lower interest rates to help employers manage costs, enabling them to pay workers more.

The new daily rate will apply to companies or factories with at least 200 workers. Studies indicate that the change would result in employers paying approximately 73 baht (US$2) more per employee daily.

“The impact would be substantial.”

Addressing Sia’s concerns about small and medium enterprises being excluded from the policy, Phiphat assured that his ministry would work on increasing minimum wages among smaller employers later, based on reports from provincial wage committees.

Phiphat also reiterated the government’s commitment to raising the wage to 600 baht (US$18.5) by 2027, as promised during the 2023 election campaign.

“It is crucial to first achieve the 400-baht minimum by October before announcing other plans and timelines.”

However, Phiphat emphasised that the wage increase should align with the country’s current economic status rather than adhering strictly to a fixed timeline, suggesting that the raise might not reach the promised 600-baht goal, reported Bangkok Post.

“The ministry is instead focusing on finding solutions for sustainable progress in terms of raising wages and ensuring financial stability for workers.”