Thai labour committee proposes flat rate minimum wage increase to 492 baht

Workers’ representative and adviser to the Thai Labour Solidarity Committee (TLSC), Chalee Loysoong, has called for a nationwide flat rate minimum wage increase to 492 baht. Arguing that this will bolster purchasing power, he suggests it as a more sustainable strategy than the government’s proposed one-time 10,000 baht cash handout scheme, particularly when factoring in the multiplier effect.

Chalee reassured that the wage hike would not push businesses to relocate their production bases to other countries, thanks to the appealing investment policies in Thailand. He proposed the flat rate on the grounds that consumer goods prices are uniform across the country.

“People in the provinces don’t necessarily buy cheaper goods. It’s vital to increase purchasing power across the board.”

Chalee also cautioned the labour minister against interfering with the tripartite wage committee’s work, as the wage is reviewed by a panel comprising state, employer, and employee representatives, reported Bangkok Post.

Atthayuth Leeyawanich, chairman of the Employers Confederation of Consumer Goods and Services, backed Chalee’s stance, emphasising that the committee should be allowed to do its job without government pressure. However, he also pointed out that criteria such as inflation and economic growth must be considered when reviewing the minimum wage.

Atthayuth noted that employers currently cannot afford the 400-baht rate and urged the government to implement additional measures to strengthen the economy.

Last October, the daily wage was increased across all 77 provinces to between 328 baht and 354 baht, with the average daily minimum wage at 337 baht. This was a 5.02% average increase and was approved after a freeze lasting over two years. Despite these increases, the call for a flat rate of 492 baht persists.

In related news, Prime Minister Srettha Thavisin announced that the government will be pushing for a swift increase in the minimum daily wage to 400 baht, in a bid to assist workers grappling with rising living costs. The decision will be reached through negotiations between the government, employers, and workers to agree upon a reasonable amount. To read more click HERE