Thailand delays minimum wage hike to 400 baht by two weeks

Thailand’s decision to delay the planned increase in the minimum wage to 400 baht per day will extend the wait by about two weeks, according to a senior labour official. This postponement, initially set for October 1, is due to the committee responsible for the hike not meeting quorum requirements in its recent sessions.

The committee, comprising representatives from employers, labour, and the government, has twice failed to convene with the necessary number of members. Labour Ministry permanent secretary Pairoj Chotikasathien confirmed the government will move forward as quickly as possible, emphasising that the revised minimum wage will initially apply only to businesses with more than 200 employees.

The increase, from the current daily wage range of 330 baht to 370 baht (US$10 to 11), aligns with the Pheu Thai party’s campaign promises. The ruling party has committed to further raising the minimum wage to 600 baht (US$18) by 2027.

This wage hike forms part of the government’s broader strategy to stimulate growth in Southeast Asia’s second-largest economy, which has been struggling with high household debt and a decelerating manufacturing sector.

In addition to the wage increase, the government is launching a significant economic stimulus package valued at 450 billion baht (US$13.7 billion). This initiative will distribute 10,000 baht (US$300) to each person to be spent within local communities, with the first phase expected to commence before the month’s end, reported Bangkok Post.

The central bank projects that the economy will grow by 2.6% this year, improving from last year’s growth rate of 1.9%.

In related news, the Wage Committee’s scheduled meeting was abruptly cancelled due to the absence of employer representatives, postponing the decision to raise the minimum wage to 400 baht on October 1. Government and employee committee members were left waiting at the Ministry of Labour

Pairote Chotikasathien, Permanent Secretary of the Ministry of Labour and Chairman of the Wage Committee, presided over the 22nd Wage Committee’s 8th meeting for the year, intended to review the proposed minimum wage increase.