Thailand minimum wage hike to 400 baht confirmed for October 1

Pheu Thai Party’s labour policy, particularly the plan to increase the daily minimum wage to 400 baht nationwide, remains firm, confirmed caretaker Labour Minister Phiphat Ratchakitprakarn.

Phiphat assured that the wage hike, targeting specific professions and regions, is set to take effect on October 1, with further details to be announced shortly.

The national wage committee, led by the permanent secretary for the Ministry of Labour, is scheduled to convene twice before finalising the specifics of the increase.

“The new wage rate will be disclosed this month, but it will only apply to certain groups of workers and entrepreneurs.

“The government is committed to carrying on the previous government’s policy, and the labour ministry has already submitted its proposal for inclusion in the government’s policy statement.”

Raising the daily minimum wage was a central campaign promise of the Pheu Thai Party. They pledged last year to hike the wage to 400 baht within their first year in power, and further to 600 baht by 2027.

Currently, the minimum wage ranges from 330 to 370 baht depending on the province.

The national wage committee, which includes representatives from the government, employers, and labour groups, approved a 400-baht daily wage on March 26, but with certain limitations.

Partial implementation

The new rate was implemented in parts of 10 provinces on April 13, covering areas such as Phuket, Koh Samui in Surat Thani, Pattaya in Chon Buri, Chiang Mai City in Chiang Mai, and Pathumwan and Watthana districts in Bangkok. It applied specifically to tourism-related businesses and four-star hotels with at least 50 employees.

Phiphat also vowed to support employees affected by business closures, ensuring they receive appropriate compensation.

According to data from the Department of Industrial Works, between January and July this year, 667 factories were shut down while 1,260 new factories opened. The rate of factory openings was close to the five-year average.

Comparing the data on closed factories with new ones revealed an investment increase of 167.6 billion baht and an employment rise of 25,663 people.

Meanwhile, Thaweesan Wichaiwong, President of the Khon Kaen Industry Council, expressed the Federation of Thai Industries’ opposition to a uniform, nationwide wage of 400 baht, reported Bangkok Post.

He argued that the increase should be adjusted based on inflation indices and the economic conditions of each province; otherwise, it could negatively impact small businesses that need to bear additional costs.

“Eventually, the extra costs will be passed on to consumers, and some manufacturers might relocate to countries with lower labour costs.”