Thailand plans 400-baht minimum wage amid SME concerns
Labour Minister Phiphat Ratchakitprakarn says he is dedicated to implementing a nationwide increase in the minimum wage to 400 baht, despite concerns over its effects on small and medium-sized enterprises (SMEs) and inflation. A tripartite wage committee is set to review this proposal tomorrow, March 12.
Phiphat addressed a Parliamentary inquiry from Senator Tewarit Maneechai regarding the obstacles to this wage increase, following three postponements across all provinces. He reiterated his commitment by referencing the 2012 wage adjustment model from seven provinces, especially in the Bangkok Metropolitan area.
The wage committee, alongside subcommittees from 76 provinces, concluded that only four provinces, Phuket, Chachoengsao, Chon Buri, and Rayong, along with Samui district in Surat Thani, could implement the 400-baht minimum wage starting January 1.
Phiphat expressed concern over current wage inequality and acknowledges his responsibility for addressing the issue. He also recognised the potential significant impact on SMEs and the possible severe economic repercussions.
He stressed the need for careful consideration, with the wage committee scheduled to meet tomorrow before its term concludes. The committee’s responsibilities will continue until a new one is established.
“I remain hopeful. I can’t force anyone, but I urge the tripartite committee to consider using pilot provinces as a model and applying the 400-baht wage to specific occupations that have seen economic improvement.”
If the wage increase is not approved in the initial meeting, a second meeting may be held within 15 days.
Phiphat also discussed potential measures to mitigate the impact of the wage increase, such as tax deductions for businesses and reductions in employers’ contributions to the Social Security Fund (SSF).
The Labour Ministry previously announced that 129 occupations would qualify for the new minimum wage of 400 baht, leaving 13 occupations below this threshold, reported Bangkok Post.
In other news, Israel has decided to increase the number of Thai workers in its agriculture and construction sectors to 21,000 positions this year, as announced by Labour Minister Rabbi Yoav Ben Tzur.
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