Thailand minimum wage hike to 400 baht awaits govt decision

The Thai Labour Ministry and employer representatives are eagerly awaiting the new government’s decision on whether to increase the daily minimum wage to 400 baht nationwide, a move that could significantly impact the country’s labour market.

Permanent Secretary for Labour Pairoj Chotikasathien stated yesterday, August 20, that while the policy was approved by the Srettha Thavisin administration in May, further comments are on hold until the current government clarifies its stance on the wage hike.

“If the government reaffirms the rise, the policy will be implemented within the specified timeframe as the subcommittee responsible for reviewing provincial minimum wage rates has already submitted the figures for each province.”

The minimum wage committee meeting, initially scheduled for August, has been postponed to September as stakeholders await the government’s direction.

On May 14, the Cabinet acknowledged the Labour Ministry’s proposal to increase the daily minimum wage to 400 baht nationwide, with implementation scheduled for October.

Atthayuth Leeyawanich, representing employers on the wage committee, expressed a desire to understand the new government’s position on the wage increase.

“If it is announced that the wage must increase to 400 baht this year, employers will not agree.”

The tripartite wage committee, which includes representatives from employees, employers, and the government, has yet to reach a consensus, with employer representatives opposing the government’s plan.

Raising the minimum wage is a cornerstone policy of the Pheu Thai-led government, which aims to increase it to 400 baht within its first year in power and to 600 baht by 2027.

The nationwide daily minimum wage saw an increase on January 1, with new rates varying between provinces, ranging from 330 to 370 baht. The increases varied from 2 to 16 baht, averaging 2.37%.

In April, the tripartite wage committee approved an increase to 400 baht for tourism-related businesses and four-star hotels with at least 50 employees in specific areas of 10 provinces. These provinces include Phuket, Koh Samui in Surat Thani, Pattaya in Chon Buri, Chiang Mai City in Chiang Mai, and Pathumwan and Watthana districts in Bangkok.

Employers and employees across the nation are now waiting for further announcements that will determine how soon, and by how much, the minimum wage will increase, impacting millions of Thai workers and businesses alike, reported Bangkok Post.