23-9-2024 (BANGKOK) Thailand’s much-anticipated minimum wage increase has hit a snag, forcing a postponement of approximately two weeks. The wage hike, initially slated for 1 October, aimed to raise the daily minimum wage to 400 baht across the country.
Pairoj Chotikasathien, the Labour Ministry’s permanent secretary, revealed on Monday that the delay stems from the inability to reach a quorum during crucial committee meetings. This tripartite committee, comprising representatives from employers, labour unions, and the government, has failed to achieve the necessary attendance in two previous gatherings.
“We will move forward as quickly as possible,” Chotikasathien assured, emphasising the government’s commitment to implementing the wage increase. However, he noted a significant caveat: the new minimum wage will only apply to businesses employing more than 200 people, potentially leaving smaller enterprises exempt from the immediate change.
This wage hike, a cornerstone of the ruling Pheu Thai party’s campaign promises, represents a substantial increase from the current daily wage range of 330 to 370 baht. The party’s ambitious plans don’t stop there; they’ve pledged to further boost the minimum wage to 600 baht by 2027, signalling a long-term commitment to improving workers’ livelihoods.
The wage increase is part of a broader strategy to invigorate Thailand’s economy, Southeast Asia’s second-largest, which has been grappling with high household debt and a sluggish manufacturing sector. Alongside this measure, the government is set to roll out a massive 450 billion baht stimulus scheme, providing 10,000 baht to individuals for spending in local communities. The first phase of this initiative is expected to commence before the month’s end.
These economic interventions come as Thailand’s central bank projects a growth rate of 2.6 per cent for the current year, a marked improvement from the 1.9 per cent growth recorded in 2023. The government hopes that the combination of wage increases and stimulus measures will provide the necessary boost to propel the economy forward.
