Minimum wage rises to 400 baht in 10 Thai provinces

The minimum wage in selected areas of 10 Thai provinces is set to rise to 400 baht per day, as decreed by the tripartite wage committee yesterday.

This new wage increase, which comes into effect on April 13, will apply to tourism-related businesses and four-star hotels with a staff of 50 or more.

Pairoj Chotikasathien, the committee’s chairman and permanent secretary for the Labour Ministry, confirmed the increase. The committee, composed of representatives from employers, employees, and the government, will also consider a similar wage hike for employees in the export and logistics sectors.

The wage increase will affect specific areas such as Bangkok’s Pathumwan and Watthana districts, all of Phuket, and parts of Chiang Mai, Krabi, Songkhla, Surat Thani, Phang Nga, Chon Buri, Prachuap Khiri Khan, and Rayong.

Labour Minister Phiphat Ratchakitprakarn stated that the Cabinet will acknowledge the wage hike on April 2, with the announcement appearing in the Royal Gazette on April 13. The minister explained that the increase was timed to coincide with the Songkran festival in April, marking the Thai New Year.

In late February, the wage committee green-lit a study exploring the possibility of wage increases across various provinces and career types. The study involved a survey of businesses and employers within the 10 provinces that benefit significantly from the tourism industry.

The minimum wage calculation considers factors such as labour productivity, GDP, and inflation. As of January 1, the national daily minimum wage for Thai workers saw an increase, with rates varying between provinces, from 330 to 370 baht.

Phiphat had previously admitted that the wage review typically depends on the economic growth rate, inflation, and the cost of living over the past five years. However, he noted that using this calculation method during the economic downturn of the Covid-19 pandemic from 2020 to 2021 was unfair to workers, reported Bangkok Post.

Last year, the Pheu Thai Party’s election campaign pledge of a 400-baht rate sparked concerns among businesses, fearing it would affect the country’s competitiveness.

A Federation of Thai Industries (FTI) source also shared that the impending wage hike would place a burden on business operators, particularly small and medium-sized enterprises, despite the seemingly small increment. They suggested that the government should consider implementing stimulus measures instead of another wage increase.