Thailand plans to extend minimum wage increases to more regions

Prime Minister Srettha Thavisin announced yesterday that the government intends to extend minimum wage increases to additional regions and business sectors. This follows the wage increase approved for specific parts of 10 provinces set to take effect from April 13.

The 62 year old Thai prime minister further commented that regular Cabinet meetings will be conducted to ascertain which regions and business types should be the beneficiaries of minimum wage increases. The latest wage increase, approved by the tripartite wage committee on March 26, will be applied to tourism-related businesses and four-star hotels with a workforce of 50 or more, informed Pairoj Chotikasathien, the permanent secretary for the Labour Ministry and committee chairman.

The wage hike is set for implementation in particular districts of Bangkok, namely Pathumwan and Watthana, Nakhon Chiang Mai municipality in Chiang Mai, the entirety of Phuket, the jurisdiction of Tambon Ao Nang administrative organisation in Krabi, Hat Yai municipality in Songkhla, Koh Samui district in Surat Thani, Tambon Khuk Khak municipality in Phangnga, Pattaya City in Chon Buri, Hua Hin municipality in Prachuap Khiri Khan, and tambon Ban Phae in Rayong.

However, a joint statement issued yesterday by business associations in Phuket, Phang Nga and Krabi, including the Phuket Chamber of Commerce and the Thai Hotels Association’s Southern Chapter, amongst others, has requested a delay. The statement pointed out that employees’ incomes already exceed 400 baht (US$11) a day, as they earn based on minimum rates and their share of service charges.

“This act of interference in the industry’s wage payment mechanism is wrong. It will impose financial burdens on employers and affect other businesses such as restaurants and transport.”

Thai workers nationwide witnessed an increase in the daily minimum wage from January 1, with new rates differing between provinces, from 330 to 370 baht (US$9 to US$10). The increases range from 2 to 16 baht, averaging 2.37%, reported Bangkok Post.