Thai labour minister pledges 400 baht wage hike by May 1
Labour Minister Phiphat Ratchakitprakarn has committed to a 400 baht wage increase by May 1, alongside support for small and medium-sized enterprises (SMEs).
During a censure debate on March 25, People’s Party MP Sirikanya Tansakul criticised the government for not implementing the 400 baht (US$11) wage policy earlier, as promised by the prime minister. She argued that the promise was merely political rhetoric.
Sirikanya highlighted that there has been an 11% increase in business closures since the start of the Paetongtarn administration, with only a 4% rise in new business openings. Many workers faced layoffs with minimal compensation, while the prime minister and Cabinet were responsible for the compensation budget.
Phiphat responded yesterday, March 26, stating that the permanent secretary for labour, who leads the wage committee, will hold a meeting before the Songkran festival to discuss nationwide wage adjustments in time for May 1, Labour Day. Prior wage increases were seen in regions such as Phuket, Chon Buri, Rayong, Chachoengsao, and Koh Samui.
The labour minister noted that wage changes could impact approximately 5.8 million workers and 500,000 employers in the SME sector, which is vital to the economy. A uniform wage increase might result in job losses for around 1.9 million workers, representing 30% of SME employees.
Phiphat mentioned that the government’s growth target of 3% would be considered, meaning some employment sectors might receive varying wage increases to mitigate economic effects. He also addressed concerns about foreign workers, particularly Chinese nationals working illegally in Thailand.
The state is intensifying efforts to combat foreign nominees, especially in the Eastern Economic Corridor, to encourage the hiring of local workers, reported Bangkok Post.
Last year, the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) plans to appeal to Prime Minister Paetongtarn Shinawatra, requesting a delay in the scheduled minimum wage increase to 400 baht, which was set for January 1, due to ongoing economic difficulties faced by businesses.
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